Lori Meadows
Funding an MBA is a challenging aspect of pursuing this degree, especially for international students. While business school is expensive, the right student loan can turn a short-term financial burden into a long-term investment. Scholarships and fellowships are also great options for international students as they do not need to be repaid. Loans from the student's home country government are generally the best option, but it is important to read the fine print. If borrowing in the US, it is recommended to shop around and compare interest rates and loan terms.
| Characteristics | Values |
|---|---|
| Personal savings | Cover only a fraction of the total cost |
| Financial support from family and friends | Cover only a fraction of the total cost |
| Sponsorship from current employer | Requires a 2-year commitment to the company after graduation |
| Scholarships and fellowships | Offered by institutions, foundations, governments, universities, and companies; can cover up to 100% of tuition fees |
| Loans from home country | Generally the best option for international students; may be subsidized by the government |
| Loans from the US | Require a US co-signer; may be provided by US schools |
| Part-time work | Teaching and research assistant jobs at the university can provide income |
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What You'll Learn
Scholarships and fellowships
International students can apply for scholarships and fellowships offered by their host institution, external organisations, or their home country. For example, the University of Pennsylvania offers need-based financial aid to international students, including grants and work-study programs. The IMD MBA Scholarships, awarded by the International Institute for Management Development, a Swiss business school, offers scholarships ranging from 30,000-50,000 Swiss francs based on need and merit. The scholarship focuses on categories like diversity, professional background, and geographic region.
Some scholarships are aimed at specific nationalities. For instance, the Onsi Sawiris Scholarship is a full funding scholarship offered by AMIDEAST for Egyptian nationals. The Aditya Birla Scholarships are partial funding scholarships offered by the Aditya Birla Group for Indian nationals. The Merit Scholarships at SP Jain School of Global Management is another partial funding scholarship, offered to students of all nationalities.
There are also scholarships specifically for women. The Women Scholarships at Luiss Business School is a partial funding scholarship open to female applicants of all nationalities. The Forté Foundation MBA Fellowships support women pursuing business careers, and students of all nationalities can apply. The American Association of University Women International Fellowships benefit female master's and doctoral candidates planning to launch a professional career in their home countries. Funding ranges from $18,000–$30,000.
Some scholarships are aimed at students from developing countries. For example, scholars4dev.com has compiled a list of International MBA Scholarships for developing country students and women. The UGL Global Masters Scholarship at University College London is a £15,000 scholarship for master's candidates from low-income backgrounds, open to students of all nationalities.
Loans
In addition to scholarships and fellowships, international students can also consider taking out a loan to fund their MBA. This could be a personal loan from a bank or financial institution in their home country, or an international loan from a bank or provider in the country where they will study. For example, international students planning to study in the US can access loans from companies like Prodigy Finance, MPower Financing, and Citizens One. However, it's important to note that access to loans can be challenging for international students due to factors such as lack of credit history or collateral.
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Loans from home country
International students can face difficulties in securing loans for their MBA due to a lack of credit history in their country of study, insufficient assets for collateral, or their country of origin's financial infrastructure. For instance, students from Ghana or Indonesia may have more limited access to funds compared to those from the United States. As such, international students often turn to their home countries for loans.
Loans from your home country
Loans from your home country can be a viable option for funding your MBA as an international student. Many international students use loans secured in their home countries to finance their studies. These loans can be obtained from banks or loan providers in your home country. It is recommended to compare the interest rates and terms and conditions offered by different lenders before making a decision. Additionally, some countries offer government-subsidized loans, which are generally considered the best option for international students. However, it is important to carefully read the fine print, especially regarding repayment terms, foreign exchange rates, and interest rates.
When considering loans from your home country, it is important to be aware of any eligibility requirements. For example, some loans may require you to have a co-signer, which is typically a creditworthy citizen or permanent resident of the country where you plan to study. In the case of the United States, a co-signer must have lived in the country for at least two years. Some schools, such as Harvard Business School and MIT Sloan School of Management, offer co-signing services for their international students through their respective credit unions.
If you choose to take out a loan from your home country, you may be required to provide a notarized loan agreement to the financial aid office of your university. This is necessary for both personal loans and need-based scholarships. Additionally, it is important to consider the potential impact on your future financial situation. While refinancing at a lower interest rate after graduation may not be an option, it is recommended to start building a credit score in your country of study and plan to pay off your loans aggressively if you cannot refinance.
Overall, loans from your home country can be a useful option for international students seeking to fund their MBA. By carefully researching and comparing different loan options, understanding eligibility requirements, and considering the potential long-term financial implications, you can make an informed decision about securing a loan from your home country to support your MBA studies.
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Personal savings
One option to consider is taking on a part-time job while studying. For example, becoming a teaching assistant or research assistant at the university can provide an additional source of income and may even lead to around 20,000 USD a year in the US. Certain employers may also be willing to cover part or all of the tuition fees, although this is more common for Executive MBA programs.
Another option is to look for scholarships and fellowships, which are grants that do not need to be repaid. These can be offered by universities, governments, organizations, or companies, and can be merit-based, need-based, incentive-based, or university-specific. It is important to note that competition for these scholarships can be intense, so it is advisable to apply for as many as possible and ensure that all eligibility criteria are met.
International students can also consider taking out loans to supplement their personal savings. These can be from banks in the student's home country or international loan providers in the country where they will study. It is important to compare interest rates and loan terms before taking out any loan, as well as to be aware of any requirements for a co-signer or credit history. Some countries, like the US, require international students to have a co-signer who is a creditworthy citizen or permanent resident. However, some schools, such as Harvard Business School and MIT Sloan School of Management, will co-sign loans on behalf of their international students.
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Employer sponsorship
MBA degrees can cost upwards of $60,000, so it's no surprise that many prospective students seek out creative ways to fund their graduate degrees. One way to reduce the cost is to seek employer sponsorship. Many Fortune 500 firms offer some form of tuition reimbursement for MBAs, ranging from $3,500 to $50,000 per year or full tuition. Some companies even offer 100% of tuition upfront for eligible hourly employees, while salaried employees are often eligible for tuition reimbursement.
Company sponsorship is a smart way to have your MBA paid for in part or in full by your employer. However, sponsorship comes with conditions, and sponsored students are expected to return to their firms for at least two years after graduation. Most companies will only sponsor employees who commit to staying with the company post-graduation. If you return for only a fraction of the agreed-upon time, the company's contribution may be prorated. For example, if you commit to two years but only return for one, they may only pay 50% of your MBA.
Before approaching your employer about sponsorship, it's important to do your research. Check if your firm has a standard tuition assistance or sponsorship programme, and consider whether you want your employer to pay for your entire tuition or just a portion. You should also be prepared to answer questions about your ability to work while studying, and how your MBA will benefit both you and the company. It's also important to gauge the financial health of the company and the economy before asking for sponsorship.
If you decide to seek employer sponsorship, you may have a leg up in the admissions process. MBA programmes know that sponsored students are worth investing in and are more likely to admit candidates who have company sponsorship.
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Part-time work
Firstly, consider working as a teaching or research assistant at the university where you are enrolled. This can save time and energy, as your workplace will be where you study. In the US, these positions can pay around 20,000 USD per year and are usually available after an MBA student has been enrolled for at least one semester.
Secondly, certain employers may agree to cover part or all of your tuition fees. This option is more common for Executive MBA programmes, but it is worth investigating.
Thirdly, there are often part-time work opportunities outside of the university. International students may face restrictions on the number of hours they can work, so ensure you are aware of these. It is also important to remember that part-time work may not cover all your costs, so consider combining it with scholarships, fellowships, or loans.
Finally, remember to carefully analyse whether part-time work is the best solution for you. It is important to thoroughly research all your funding options and make an informed decision.
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Frequently asked questions
International students can fund their MBAs through scholarships, fellowships, loans, part-time work, assistantships, or employer support.
Scholarships and fellowships are grants that do not need to be repaid. Examples of scholarships include the Forté Fou and the Studyportals Scholarship. The Fulbright scholarship is another option for international students, with some countries offering no cap on the amount received.
International students can apply for loans in their home countries or through international loan providers in the country where they will study. Some examples of loan providers for international students include Prodigy Finance, Citizens One, and MPower Financing.
Employer support can free students from the financial burden of securing a loan. However, most companies require at least a 2-year commitment after graduation, so this option may not be suitable for students who want to change professions.
International students can work as teaching assistants or research assistants at the university where they are enrolled. Certain employers may also cover part or all of the tuition fees for their employees.
