One of the main challenges that all MBA applicants face is business school fees. The cost of American programs varies and at elite business schools, it can exceed $ 120,000.
Do not forget about extra costs: living expenses (if you are applying, for example, to one of the schools in New York or Boston), on textbooks, computers, software, study trips and administrative fees, which are usually not included in the cost of courses. At the same time, the MBA student leaves the labor market for almost two years.
For American candidates, this problem is quite solvable, at least until their credit history raises questions. After all, American banks, even in today’s tense economic environment, know that investing in MBA students will pay off when they return to work.
But if US citizens can get a federal loan through the Federal Graduate PLUS Program of the US Department of Education, then it is much more difficult for foreign students. During the years of economic growth, they could get a loan to study in the MBA program without a US citizen guarantor, but since 2011 this has become almost impossible.
However, the United States remains the world’s main focus of business education. So, unless you plan to pay for your studies with your own savings, or are one of the lucky few to convince an employer to pay for your tuition, you will have to consider other funding options that exist.
Business School Help
First of all, seek help from a business school. Maybe it can provide a loan for MBA students or even act as your guarantor in a private bank.
International students participate in the Duke MBA Loan Program on the same terms as US students. The university is a guarantor, so any student who enrolls in our MBA program is automatically eligible to participate in the loan program, which covers up to 100% of the tuition fees. This is how we protect the interests of the international students and offer them the same opportunities as the Americans.
Paul Danos, dean of the Tuck Business School at Dartmouth University, said that “funding will not be a barrier to a student who qualifies for the school.” After all, MBA programs should be attended by gifted students who are fully focused on their studies and do not worry that they will not be able to continue their studies due to financial problems.
Financing an MBA program in your country
Although most American and Canadian schools offer financial aid or scholarships to international students, you cannot get a US visa to stay in the country while you study unless you have a certain amount. Europeans often take loans from banks in their countries. If you are enrolled in a leading business school, many banks will lend you money, because investing in MBA students pays off well.
While non-US students are not eligible for federal aid, there are other ways to fund tuition. Boston offers incentive scholarships for all students, regardless of country. Last year, 73% of recruits received some form of scholarship, which is a great way for foreigners to fund their studies.
Potential employers can also be sponsors, so if you know where you will be working at the end of the program, try to contact them.
MBA student loan programs
In late 2009, Deutsche Bank introduced the innovative Affiliated Loan Program for Students (ALPS), which offers loans to MBA students from partner schools. The uniqueness of this program is that participants do not need a US citizen sponsor. Check before applying to see if your school has entered into a partnership with Deutsche.
Moreover, even if a student managed to get a loan based on current interest rates, he will have to reimburse twice as much, which makes the investment in the MBA degree much higher, and the investment turnover ratio is much lower than a few years ago.