Top ten financing rules for your EMBA

It is well known that an Executive MBA comes with a price tag so it pays to start planning your EMBA financing strategy well in advance. Resourcefulness and astute budgeting are called for in times of continued global economic uncertainty in order to make the most of your available finances. Here are our top ten rules to have at hand when considering your EMBA funding.

1. Be strategic

EMBA funding from employers is increasingly hard to come by in times of financial uncertainty and austerity. As Rachel Killian, MBA Marketing and Recruitment Manager at Warwick Business School, UK, notes: “The biggest hurdle applicants are facing at the moment is securing employer funding. We’ve seen a fall in the percentage of students who are fully sponsored of around 30% in the last few years.” This means EMBA aspirants have to put in extra work when trying to convince their employer financial support from the company will have a positive return for the business.

Top tip: Present a business case to your employer to show what’s in it for them.

2. Don’t be shy

Business schools are aware company sponsorship has been in decline and organizations have become stricter in giving employees the flexibility they need to complete an EMBA program. That’s why many business schools offer advice and support in helping applicants approach their company for funding. Maryke Luijedndijk-Steenkamp, Director of Marketing and Admissions at the Rotterdam School of Management (RSM), in The Netherlands, explains: “We provide candidates with a business case they can use when approaching their employers, citing testimonials from previous sponsored candidates and sponsoring employers. We also advise on a basic level on the beneficial tax rebate options available, if applicable.”

Top tip: Approach your business school for support in making the case for employer funding.

3. Know when to negotiate

There’s no use asking for full company sponsorship for your EMBA when neither means nor the company policies permit such level of funding. Instead, try and negotiate the best possible funding solution from your company, even if that yields only a small contribution. Timing is also crucial to give you more clout in the negotiating process. “We advise candidates to engage in their application process and funding-seeking process simultaneously to ensure they receive an offer early in the cycle,” says RSM’s Luijdendijk-Steenkamp. “Often it adds to the ‘negotiation power’ of an employee when discussing funding if he/she can already prove admission into a program.”

Top tip: Be mindful of what is realistic to ask for in relation to the size, financial capacity and general policy of your company.

4. Shop around

Don’t let decreasing company sponsorship deter you from pursuing your EMBA. There are many cost-effective programs available that meet the requirements of smaller budgets without compromising on quality. However, to find the best fit for your needs and your wallet, research is crucial. Francis Petit, Associate Dean for the Executive MBA program at Fordham University, US tells prospective students to shop around for programs, especially if they are paying much of it out of their own pockets. “Go to information sessions and sit in on classes of the schools you are applying to. If you’re going to make this financial commitment, you want to make sure you’re at the right school for you.”

Top tip: If you can’t secure employer funding, find the best program for the budget you have. Don’t be put off by high price tags; remember that top priced programs are not the only option available.

5. Invest time in scholarship applications

There is more ‘free’ money available for EMBA study than is commonly assumed. It is just a matter of investing some time to do the research. An obvious source of scholarship funding is the business school itself. Contact them first to see what grants, bursaries and scholarships they have on offer. Most institutions will have some funds available for students, based on either need or merit. Additionally, there are a number of organizations, associations and businesses that make scholarship funds available to deserving students.

6. Find a good loan

It may not be as easy as it once was to secure a loan for EMBA study but it’s still a good funding solution. Lenders have become more cautious and conditions less favourable for those seeking a loan but there are still attractive options available, such as personal development loans or graduate student loans. However, before signing on the dotted line, make sure you are absolutely clear on what interest rate you might be eligible for (based on your credit rating) and over what period it applies. Not all loans will be available at the interest rate they advertise. Some financial institutions also offer deferred reimbursement loans especially designed for students.

Top tip: Speak to a financial adviser to find the best deal for your EMBA studies.

7. Explore payment schedules

Get in touch with your business school to arrange fee payment in instalments. They are aware of the growing number of obstacles EMBA candidates face in securing funding and are willing to work with students in allowing tuition fees to be paid in instalments. Even if tuition fees are only one aspect of the EMBA, this helps ease the financial burden of up-front costs significantly, so it is worth asking your school what your options are.

Top tip: Talk to alumni of your school to find out how they approached the EMBA funding challenge.

8. Save, save, save!

The moment you seriously consider doing an EMBA, start putting money away. Setting aside a fixed amount each month can accumulate to a substantial sum within a couple of years. Although this may require fiscal discipline and a good deal of foresight and planning, it is also a tremendous ease to know you are able to finance a substantial amount of your EMBA studies without any other ‘strings attached’.

Top tip: Do your research into the costs associated with your EMBA, from course fees to travel, text books to socialising. That way you’ll have a better idea of the overall cost involved.

9. Plan ahead

Once you have decided to do an EMBA, start planning your financing strategy. It may take a good while to plan, research and realize what funding options are available to you, and even longer to secure them. Don’t just rely on one source; have a plan B or even C in place in order to stay focused on your EMBA goals. Don’t forget to talk to your local tax office as well to find out you are eligible for any rebates on your income tax.

Top tip: Don’t leave it to the last minute to work out how you will pay for the program.

10. Calculate the ROI

An Executive MBA will take time and money so be absolutely clear what you are willing to invest, and what you expect to gain from the experience. As Laurie Kirsch, Senior Associate Dean and Professor of Business Administration at the Joseph M. Katz Graduate School of Business, US confirms: “Tuition cost concerns, although quite understandable, are a short-term view that doesn’t take into account the high return on investment experienced by our graduates. By earning an EMBA degree, our students are investing in themselves, and many times the program quickly pays for itself in terms of career advancement.”

Top tip: Consider your EMBA as an investment not only in terms of short-term expenditure but long-term gain as well.