How to Finance Your MBA

Most top MBA programs cost more than $40,000 per year in tuition. In addition to tuition, there are expenses for books and living expenses. A top MBA education can cost well over $100,000. In order to prepare for such a financial undertaking, it is important to know your financial options before starting your MBA program.

Scholarships
You can apply for merit-based scholarships. These can be issued through your school or through a third party. The main criteria for mba scholarship selection are work experience, undergraduate gpa, and GMAT score.

Federal Student Loans
You can apply for federal student loans. You must fill out the FAFSA and be approved. Federal loans come in two main types--subsidized and unsubsidized. Subsidized loans do not accrue interest during school. Unsubsidized loans accrue interest beginning at their inception, though payments are not usually required until after graduation.

Private Student Loans
Private student loans are another method of MBA program financing. MBA students can apply for private student loans from a variety of lenders. Each school's financial aid office will be able to help with this process. Private student loan interest rates can vary from lender to lender, so it is useful to shop around for the best interest rate.

Part-Time Work
One way to avoid student loan debt through your MBA program is to maintain part-time work. You can either remain on with your previous employer on a part-time basis, or you can find a new job. Be careful to budget your time well, since your MBA studies will be very time-consuming. A part-time job may not completely finance your business degree, but it can at least cover some of your living expenses.

Personal Savings
If you have financially prepared for your business school degree, you can dip into your personal savings to finance your MBA. This method requires significant amounts of time and money, but can be a very effective way of paying for business school.

Employer Tuition Reimbursement
Many employers offer tuition reimbursement. If you plan to stay with your employer during business school this can be a great financing method. Most employers require you to work for the company for 1-2 years or more after graduation in exchange for the tuition reimbursement.

Personal Business
If you have a personal business you can continue to run it during business school. If you do not own your own business, you can start up a business venture to finance your MBA expenses. A personal business allows you the scheduling flexibility that you will need during business school.

About the Author
Ben B Jones is an author, marketer, and entrepreneur. He holds an MBA and focuses many of his writings on MBA admissions and GMAT preparation.