A Comprehensive Guide to MBA Funding

Between tuition fees, living costs and admin charges, it’s no secret that getting an MBA is an expensive endeavor.

However, it doesn’t mean you’ll have to splash out US$200,000 from your wallet, as thankfully, there are plenty of funding solutions out there that can ease – or fully cover – the cost of getting your degree.

Here’s TopMBA’s comprehensive guide to MBA funding.

B-school MBA scholarships

Scholarships are probably the most common form of financial assistance for MBA applicants.

B-school sponsored MBA scholarships come in all shapes and sizes depending on the school and program. These tend to award applicants who:

• Might come from a less-represented background (such as female or minority students)
• Have an excellent educational record (such as high undergraduate grades and a high GMAT or GRE score
• Come from foreign regions or countries
• Have an impressive background in a particular industry or sector

If you’re interested in obtaining funding directly from your business school of choice, your best bet is to look for scholarships on the institution’s website.

Here are some top scholarship providers to help kick-start your search:

• The University of Virginia’s Darden School of Business provides financial support to over half of its current MBA students
• Harvard Business School is well-known for allocating millions of dollars to help talented applicants pay for their MBA
• CUHK Business School offers scholarships to female applicants, students with an entrepreneurial flair, professionals from Southeast Asia, and candidates who have worked or studied in any of the countries under the Chinese infrastructure development plan
• The Fuqua School of Business increased their scholarship allowance between 2018 and 2019 and gives exceptionally talented MBA applicants full scholarships

External scholarships

External firms and organizations are another popular source of MBA funding. Whether you’re looking for some money to cover basic expenses or fellowships for specific projects, they can help you significantly reduce costs.

Here are some organizations and schemes you should look into:

For female applicants

• The American Association of University Women (AAUW) provides over US$3.5m in funding for female fellows and grantees
• The Forté Fellows Program helps women looking to pursue a full-time, part-time or executive MBA education (read about their latest Women in Leadership conference here)

For international applicants

• The Chevening scholarships are given to international postgraduates to finance their degree at a UK-based school
• The Eduarda Justo Foundation awards highly motivated MBA students from Spain
• The Fundaćāo Estudar scholarship is given to Brazilian students with a talent for leadership and entrepreneurship
• The French-American Chamber of Commerce Bellanger Business School Scholarship Program funds French MBA students studying in the US and American MBA students studying in France
• The Kosciuszko Foundation awards American postgrad students of Polish descent  
• The Fulbright Commission sponsors American students pursuing a b-school education in the UK
• The LIFE Scholarship (Lebanese International Finance Executives) provides financial support to Lebanese students or students of Lebanese descent who pursue studies in finance
•  The Tao Shing Pee Education Foundation gives fellowships to students from China who commit to returning after graduating abroad
• The Said Foundation awards students from Lebanon, Palestine, Jordan and Syria who want to study in the UK
• The Sainsbury Management Fellowships provide funding for Engineering grads from the UK, EU and EEA looking to pursue an MBA at any b-school around the world

For minority applicants

• The LunaCap Foundation helps students of Mexican descent and active military or US Army Fores veterans with the costs of getting an MBA
• The American Indian Graduate Center Fellowships award Native American students
• The Hispanic Scholarship Fund offers scholarships for students of Hispanic heritage
• The Minorities in Government Finance Scholarship is sponsored by the Government Finance Officers Association (GFOA) to award outstanding US and Canadian minority students looking to pursue careers in government finance
• The Scholarship for Minority Accounting Students by the American Institute of Certified Public Accountants (AICPA) provides funding to talented graduate minority students who want to acquire the CPA licensure

For LGBTQIA+ applicants

• The Point Foundation awards LGBTQIA+ students across the US

For all applicants

• The Morgan Stanley MBA Fellowship Program offers scholarships to first-year MBA students, as well as Summer Associate Internship placements to a few lucky professionals
• The Government Finance Officers Association (GFOA) Scholarships awards talented candidates looking for a career in business
• The Orbis Investment Management MBA Fellowship funds students who are passionate about investment management

MBA student loans

Student loans are another great way of financing your MBA: they have lower interest rates than regular loans and you’ll only have to start repaying them after graduating from business school.

You can get loans from public organizations – such as governmental departments or institutions – or from private firms, such as banks and commercial lenders.

Employer sponsorships

While employer funding has decreased in recent years, some companies are willing to pay their employees’ MBA and EMBA tuition fees. If you think your boss will appreciate your initiative and drive to upskill, it’s worth asking them to invest in your education at least partially. To make your case, think of the ways a b-school degree could help you make a positive impact on your workplace.

However, be careful not to ask for too much too soon. Your employer might present you specific terms and conditions, such as a lock-in period in which you are required to stay at the company, which you won’t be able to break once you accept the money.

Crowdfunding

Unlike employer sponsorships, crowdfunding has become a popular way to pay for an MBA tuition in recent years. Platforms like Prodigy Finance and CommonBond, for example, let b-school alumni invest in bonds, which are then used to fund tuition for MBA applicants.

If you’re worried about the legitimacy of crowdfunding, don’t be – these organization often work with top-ranked institutions, including London Business School, Rotman School of Management, Wharton and the Kellogg School of Management.