How to Pay For an MBA

MBA degrees don’t come cheap. Although salary increases and promotions come with the territory, tuition fees can soar into six figures at top US business schools.

Luckily, there are plenty of ways you can pay for an MBA, and we’ve found the best of them. 

Scholarships, fellowships and grants 

When considering MBA financial aid, international students have various avenues to explore that can help reduce the cost of their education. Scholarships, fellowships, and grants are widely available and are often awarded based on merit, financial need, or diversity for those looking for fully funded MBA programmes. 

Scholarships can cover a significant portion of tuition costs. Many business schools offer merit-based MBA scholarships, which are awarded to candidates who excel academically, demonstrate leadership, or have strong professional achievements. Some scholarships may also focus on specific criteria like diversity, rewarding individuals from underrepresented backgrounds, or those committed to advancing certain social causes. 

Need-based scholarships and fellowships are another common form of financial aid. These are typically awarded to students who demonstrate financial hardship and may cover part or all of the tuition fees, depending on the institution's policies. 

Additionally, some schools offer grants or fellowships focused on specific goals, such as promoting women in business or supporting students from particular regions. The criteria and amounts may vary, so it’s advisable for students to research and apply early to increase their chances of receiving financial support. 

In general, international students can look for MBA scholarships via external sources such as government bodies, nonprofits, or private organisations that support global education, many of which are offered throughout the year. 

Employer support 

Employer support for MBA programmes is another viable form of MBA financing, especially for professionals looking to balance work with further education. While full or partial employer funding for MBAs has decreased in recent years, it is still possible to secure financial backing with a well-prepared case emphasizing the benefits to the employer. 

Employer-sponsored funding is often more common for part-time, Executive MBA (EMBA), or online MBA programmes. This is because these formats allow students to continue working full-time, minimising disruption to the employer while still gaining advanced skills. Employers may cover some or all of the tuition fees, and in some cases, they may also assist with travel or living expenses. 

Some companies offer alternative payment arrangements, such as deducting tuition fees directly from an employee's salary, which may even offer tax benefits. To successfully secure employer support, it’s essential to highlight the return on investment (ROI) for the company. This includes tangible benefits like enhanced analytical skills and leadership abilities, which can directly contribute to the organisation’s growth. 

Additionally, while some aspects of an MBA’s ROI, such as salary increases, are easy to quantify, other benefits like expanded professional networks and the prestige of the qualification can offer long-term advantages that are harder to measure but will still be equally valuable. 

Get a part-time job  

Working part-time while studying is another practical way for MBA students to help cover their tuition and living costs. This is especially feasible for those enrolled in online or part-time programmes, which offer more flexibility. However, even full-time students can find ways to earn income, though it requires careful balancing with their academic workload. 

Many educational institutions advise against part-time work for full-time students owing to the intensity of the programme which could leave them overextended. However, options like weekend jobs or freelance work could provide some income without interfering too much with studies.  

Another common approach is pursuing internships during breaks, especially for those enrolled in multi-year programmes. Internships, particularly over the summer, not only provide income but can also serve as a steppingstone to full-time employment. Pay rates for internships can vary widely by industry, with higher earnings often found in fields like consulting or finance. 

In some cases, successful interns may receive a full-time job offer after completing their internship, making this a valuable opportunity for career development as well as financial support. 

Crowdfunding 

While it’s a little unconventional, crowdfunding can be a great MBA financing option to consider. With banks in recent years less willing to lend, particularly to international students who don’t have a US credit rating, crowdfunding is one option for securing a loan. 

Students can use platforms like GoFundMe, Indiegogo, or specialised education crowdfunding sites to appeal to a broad audience for small donations. Success often depends on the strength of the personal pitch, the student's story, and frequent updates. Social media plays a big role in sharing the campaign and drawing attention. 

Additionally, while crowdfunding may not cover all costs, it can supplement other sources of financial support. For example, students might secure a portion of their tuition through personal savings or scholarships and use crowdfunding for living expenses or additional fees. 

MBA student loans 

For those unable to secure enough scholarships or employer support, MBA student loans are another option. Online platforms and fintech lenders have made it easier for students to access MBA loans, even for international students who might face challenges securing traditional bank loans. Competitive interest rates for MBA student loans and the ability to refinance make this another flexible MBA financing option for many students. 

FAQs 

How to fund MBA fees? 

There are several ways to fund MBA fees, including scholarships, employer support, student loans, part-time work, and crowdfunding. Many students combine these options to reduce out-of-pocket costs. Researching and applying early for scholarships and grants can help secure financial aid. 

How much money is needed for an MBA? 

The cost of an MBA varies widely, ranging from US$50,000 to over US$150,000 for top programmes. Tuition, living expenses, and additional fees can affect the total cost, but part-time work, scholarships, and loans can help offset these expenses. 

Is an MBA very costly? 

Yes, an MBA can be expensive, especially at top schools where tuition alone may exceed six figures. However, various funding options, including scholarships and loans, can make it more affordable, and the long-term career benefits often justify the investment. 

What’s the return on investment of an MBA? 

The return on investment (ROI) of an MBA can be significant. Graduates often benefit from salary increases, career advancement, and access to broader professional networks. While the upfront costs can be high, the long-term financial and professional gains typically outweigh the expense.