Many people dream of doing an MBA. Talented, deserving people. However, only a few thousands make the trek to business school, largely because people are deterred by the seemingly enormous costs.
We made the trek too. Not too long ago, some of us here were in your shoes. We graduated with $60-90,000 in loans, yet it all worked out, even in difficult financial situations. We believe you should not worry. Go2BSchool has a philosophy that every deserving Indian should aspire to their dreams.
Before we start, please remember that the payoff from top business schools is so significant compared to most other educational programs, that its ok to get through without scholarships. Of course, getting out of business school loan-free is indeed liberating, because you can do what you want after you graduate ? take a lower-paying job, start a company,
Why financial aid is required?
Your journey of financing your MBA starts with the first thought of doing an MBA. An MBA usually involves shelling money for tuition fees, health services fee, accommodation fees, expenditure incurred on books, computer and transportation and many more sundry expenses. All this makes up for $80,000 approximately for the entire course. If you are sweating already, here is a calmer for you. A person with a MBA degree from HBS, Stanford or MIT Sloan earns an average salary of $114,400 and average signing bonus of $20,000 which you typically receive upon acceptance of your offer. So, basically the cost of doing a MBA is worth it.
What are the methods of financing?
A lot of options are available in today?s world which can be of great help. But the first step is serious planning and budgeting. Options available are like taking a student loan at low interest rate, using one?s own personal funds, trust loans, scholarships from the universities themselves. The outsiders sometimes take up part time jobs or study from the support of companies.
For Indian students taking a student loan is easy as it has many suppliers like State Bank of India, Allahabad Bank, Bank of Baroda and IDBI. Loans can be used to cover the complete cost of program as well as living expenses. All you need to get a student loan is, to give the bank a guarantor like your parents or a relative. The interest rates range from 8.75% to 9%. The repayment time period usually starts after 4 months of graduation. Click for complete information on studentloan. It is better to have a loan from your homeland as getting a loan from another country may prove to be a hindrance, or may disappear such as happened briefly in the midst of a financial crisis.
Trust Loans offered In India:
A variety of trust loans are offered to the Indian students to study abroad. These loans are offered at a subsided rate and are sometimes interest free as well. Some of the trusts that offer trust loans are J.N.Tata Endowment, K.C Mahindra Education Trust and more.
Scholarships Offered By The Universities:
A few universities offer scholarships to international MBA students.?This is the norm, not the exception, so don?t bank on scholarships to get you through business school. We have a complete list of scholarships listed our website.
The most famous of all these scholarships is the Reliance scholarship, which offers five full scholarships for Indian students going to Stanford, who will return to India after two years working abroad, to contribute to the development of the country.
Haas School of Business for instance offers two types of scholarships to the outsiders: Haas Merit Scholarships and Haas Achievement Awards. Apart from this a lot more scholarships are also available. Refer scholarships at Haas to have a look at the complete list of scholarships offered by Haas. London Business School has a loan agreement with HSBC Bank which is open to students of all nationalities. Many more universities abroad like HBS , Stanford and MIT Sloan also offer various schemes of loans and scholarships.
Some companies usually sponsor a person for doing MBA abroad with a basic condition that the person will return to the company after graduating. McKinsey is one such employer, that requires you to return for two years after business school. If you do so, they pay your tuition. This is more typical of consulting firms than companies, but companies do this too ? though generally it is not to be found. Companies usually benefit from such scheme as this guarantee them with a MBA grad. People who opt for Executive MBA are generally sponsored by their companies. Websites of respective companies can be clicked for further assistance. If you are already working go ahead and persuade your employer.
Save some money: Using personal Funds:
If your last name is Birla, Ambani, or Tata you can easily finance your trip to a top business school. But if your net worth is a little less, primarily because you work in India, or in work in high-cost cities abroad, and it isn?t enough to go to business school. It’s still important to try and save money, because your personal funds will be put to good use. You can use your savings to pay for a two-year strategic plan ($800), school visits ($1,500-2000), a top-tier international business school consulting firm ($2000-6000), application fees ($1,000) and trips back to India during vacation before business school and summer ($2,000). There are excellent educational trips, as well as fun trips during school. While you may not have much room to use your MBA funds for these trips, trips with classmates are significant bonding and learning experiences, and you should definitely take these trips.
Advice for poor students who have no guarantees:
Its unfortunate that Indian banks need guarantees. Its equally unfortunate that a lot of top business schools outside the United States haven?t realized that the will lose talent to US schools because of they haven?t figured out. But don?t lose heart. Do two things. Firstly apply for all the scholarships out there. But don?t bank on them. Make sure you apply to US schools, where Citibank still offers the MBA loans. This is your best bet for achieving your dreams.
There is also an organization called IEFA International Education Financial Aid which is a reservoir of information on financial aid and college scholarships for international students.
We?re sure we don?t have all the answers, so we?d love to hear your ideas. Feel free to tell us and we?ll promise to thank you for it.
Undoubtedly initial costs of doing an MBA are high but the Return On Investment is even higher. Remember a US study shows that by doing an MBA from any business school raises your net worth by $500,000 (Rs. 2 crores). Do this from a top-tier school and your net worth rises by $3 million (Rs. 12 crores).
In midst of all these options, your dream of being an MBA from a high profile school should not remain unfulfilled.
Financing a MBA was easier than you thought?
What?s holding you back ? Go for it! Achieve your dreams ? on other people?s money.