UPDATE: This post was originally published on January 18, 2023. It has been updated with new tips and information below.
One of the biggest concerns that MBA candidates have throughout the admissions process is how to afford their degrees. As a student, not only do you have to worry about tuition – which, these days, can set you back more than $100,000 – but you also have to consider the costs of living and not working for one or two years.
We know that, especially for international students, funding your MBA can be an overwhelming puzzle. That’s why, in this post, we break down your options for funding so you can decide how to best finance your dream MBA.
School-funded scholarships
Most business schools have multiple grants and scholarships available for admitted students, either from the school itself or particular foundations connected to the school or department you are admitted to. In some cases, you can apply for these scholarships after admission, but often, applications for these scholarships are included earlier on in the admissions process.
Business schools generally use scholarships differently than American undergraduate programs. Whereas undergraduate programs offer scholarships based on financial need and based on merit, business schools tend to use scholarships to attract interesting candidates to their programs. This means that students with high GPAs, outstanding work experience, or demonstrated positive impact are most likely to receive scholarship options.
For example, INSEAD’s Scholarship for Women provides funding to women who have demonstrated exceptional achievements toward gender equality and/or women’s representation in the workplace. INSEAD also has the Syngenta Endowed Scholarship for Emerging Country Leadership, offering two €22,500 scholarships per year to candidates admitted to INSEAD. The scholarship is open to candidates from emerging market countries who have spent a substantial part of their working lives in emerging and developing markets. Preference is given to candidates coming from industry and who demonstrate financial need.
If you really need a scholarship to attend business school, you may want to consider also applying to a few “safety” schools (schools where you are more competitive than the average applicant), as you may be more likely to receive a scholarship at this institution. A recent client of ours, for example, was admitted both to a top New York-based school and to a well-known yet lower-ranked school in the southern US. From the latter, he received more than $80k in scholarships, and this offer was enough to convince him to turn down the more elite school.
Fellowships
Some schools also offer fellowships based on a candidate’s profile. These fellowships are more specific in nature and most often require separate applications. For instance, HEC Paris offers a L’Oreal Scholarship in the amount of €10,000 for admitted students who demonstrate creativity and who have strong leadership and professional achievements.
If you are not offered a scholarship, are offered a very small scholarship, or are offered scholarships at multiple programs, it may be a good idea for you to try to negotiate a better package for yourself. For information on how to negotiate scholarships, check out our post on the subject.
Company support/sponsorship
Another great resource is to discuss MBA financing options with your company. There are endless combinations of support packages, so it’s a good idea to talk with the HR department at your organization to find out what kind of sponsorship your company offers.
In most cases, companies require you to make some sort of commitment to return to work after you complete your MBA as part of your sponsorship agreement. If you have decided to pursue a career shift during the MBA, however, this may not be the best option for you.
Even if your employer won’t sponsor your MBA, they may still assist you via tuition reimbursement. Because these are reimbursement programs, you have to cover costs upfront via savings or loans and then will receive funds after your program is completed.
Want more information about sponsorships? Check out our guide on the topic!
Third-party scholarships
External scholarships offered through non-profit or other organizations can also be an excellent way to offset the cost of pursuing your MBA. In many cases, these types of scholarships focus on a particular group of people or characteristic (such as financial need) as the basis for selection. The amounts vary greatly depending on the award, so we suggest applying for as many as you qualify for! Below are a few of the most common scholarships our clients apply for.
The Forté Fellows Program
This program is open to women of all nationalities who have been accepted into Forté partner schools. Scholarship amounts vary based on the program. Find more information here.
Goldman Sachs MBA Fellowship
This scholarship is available to first-year Hispanic/Latino, Native American, or women MBA students pursuing a 2022 Summer Associate position at Goldman Sachs.
International scholarships
As an international student, you have access to an entire pathway of scholarships not available to students applying within their home countries. The best search engine for these scholarships is Scholars4dev.
Additionally, there are some great scholarship options for international students highlighted below.
The Lemann Fellowship
This program is open to Brazilian candidates who have been admitted into one of the Lemann Fellowship partner schools. Amounts vary based on the candidate’s profile. Find more information here (page in Portuguese).
British Chevening Scholarships
Chevening scholarships are offered to international students studying in the UK. The program offers awards to outstanding scholars with leadership potential from around the world to study for a master’s degree in any subject at any UK university. And because around 1500 scholarships are awarded each year, you have a good chance of receiving aid.
National Overseas Scholarship
Each year, the Indian government offers 100 higher ed scholarships to low-income students in the country. For more information, click here.
Go Global MBA Scholarship
The Go Global MBA scholarship, offered by educations.com, provides up to $7,000 for globally-minded leaders in business. Candidates should also demonstrate an interest in sustainability and have no more than 5 years of previous work experience.
DAAD Scholarships
DAAD scholarships are for students from developing countries pursuing Masters or PhDs degrees in Germany. The scholarships are particularly geared towards candidates from African nations. To learn more, click here.
Eiffel Scholarships
Each year, 400 Eiffel scholarships are awarded to international students wanting to pursue their master’s degrees in France. Eiffel scholarship holders receive a monthly allowance of €1,181. In addition, the program meets various expenses, including return travel, health insurance, accommodation allowance, and cultural activities.
School loans
Many business schools offer loan options through the university for international students. Harvard Business School, for example, offers loans to international students with no co-signor (a co-signor is a second person who agrees to pay the loan amount if the original borrower is unable to pay. In most cases, this person must be a citizen or permanent resident of the country in which you want to obtain a loan).
Whether or not loans are available to international students (both with and without co-signors) varies greatly from business school to business school. To find out more information about your target program, check the school’s site or contact its Financial Aid department to obtain detailed information.
Note about OFAC sanctions — Given recent political shifts in the United States, US-based lenders may be unable or unwilling to offer loans to students from countries on the United States Treasury Department’s Office of Foreign Assets Control Sanctions list (the list can be found here). Students from these countries should plan to finance their own MBAs.
Federal or private loans
Federal student loans are administered by the U.S. Department of Education. Federal Direct Student or PLUS Loans are the most popular among graduate students. Federal loans offer low-interest rates and a good amount of flexibility when it comes to forbearance or deferment. Note: federal loans are only available to U.S. citizens.
Alternatively, you may opt for a private lender if your federal loan won’t fully cover all of your tuition and living costs to complete your MBA. If you qualify for a federal loan, you can supplement it with additional private loans.
Private student loans are administered by a diversity of private lenders, including CommonBond, Sallie Mae, and SoFi. Depending on current interest rates, private loans may be preferable to federal ones and sometimes offer wider eligibility for non-U.S. citizens.
Private loans for international students
For international students, there are several private loans available. One great option is Mpower Financing, which offers fixed-rate loans based on your future earnings potential and does not require a co-signer. You can also check out Juno, which helps you find the lowest loan rates among multiple providers. As this service considers multiple sources of funding for international students, the best options may or may not require co-signers. Discover also offers student loans to international students who can find an American co-signer.
Lastly, if you are planning to attend IESE, school-specific private loans are available through Banco Sabadell. The bank offers a wide range of options for international students based on your specific needs, so it may be beneficial for you to contact them to see how they can support you in your funding goals.
Home country loans (for international students)
In some cases, it can also be financially wise to secure a loan through financial institutions in your home country. When doing research, consider the interest rates available, terms, and factors such as currency fluctuation to make sure you get the best possible loan (or combination of loans) for your situation.
Receive support in planning for and acquiring MBA funding
Because the funding process can be so complex, especially for international students, it is important that you start thinking about how you will pay for your MBA well before starting your application. You must also be realistic about your MBA expenses, including potential changes in costs of living and currency fluctuations.
This can be difficult to balance with the daunting MBA application process and your career (and potentially your family as well). Luckily, ELC’s expert team has plenty of experience and resources to help give you advice along every step of your application, from planning funding options to negotiating scholarships after you’ve received your offer letter.
To take advantage of the Ellin Lolis Advantage, apply to work with us today!
Real MBA Essays That Got People In
School-specific sample essays that got our clients accepted
