Harvard | Mr. Tech Start-Up
GMAT 720, GPA 3.52
Cornell Johnson | Mr. Social To Tech
GMAT 700, GPA 2.7
Harvard | Mr. CPG Product Manager
GMAT 720, GPA 3.5
NYU Stern | Mr. Brolic Bro
GRE 305, GPA 3.63
Tuck | Mr. Running To The Future
GMAT 720, GPA 3.5
London Business School | Ms. Audit Meme
GMAT 710, GPA 3.5
Berkeley Haas | Mr. Hanging By A Thread
GMAT 710, GPA 3.8
Wharton | Mr. Mobility Entrepreneur
GMAT 760, GPA 1st Division
Harvard | Mr. Cricket From Kashmir
GMAT 730, GPA 8.5/10
Georgetown McDonough | Mr. Aspiring Consultant
GMAT 690, GPA 3.68
HEC Paris | Mr. Analytics Consultant
GRE 326, GPA 9.05/10
Harvard | Mr. Healthcare Manager
GMAT 760, GPA 3.7
McCombs School of Business | Mr. Microsoft Consultant
GMAT N/A, GPA 2.31
Tuck | Mr. Land Management
GMAT 760, GPA 3.85
Stanford GSB | Mr. Seller
GMAT 740, GPA 3.3
Wharton | Mr. Researcher
GMAT 700, GPA 3.2
NYU Stern | Mr. Beer Guy
GRE 306, GPA 4.0
Columbia | Mr. MD/MBA
GMAT 670, GPA 3.77
Harvard | The Insurer
GMAT 730, GPA 3.4
Wharton | Mr. Data Dude
GMAT 750, GPA 4.0
Tepper | Mr. Automotive Strategy
GMAT 670 - 700 on practice tests, GPA 3.3
Duke Fuqua | Mr. Backyard Homesteader
GRE 327, GPA 3.90
Wharton | Mr. Finance to MBB
GMAT 760, GPA 4.0
London Business School | Ms. Social Impact Consulting
GRE 330, GPA 3.28
Tepper | Mr. Insurance Dude
GMAT 660, GPA 3.6
Kellogg | Ms. Indian Marketer
GMAT 680, GPA 8.9/10
NYU Stern | Mr. Middle Eastern Warrior
GMAT 720 (Estimated), GPA 3.0

More Parents Paying For Their Kids’ MBAs

Millennial

>Why Mom & Dad Are Increasingly Footing The Bill For Their Child’s MBA

 

Remember being an undergrad? Back then, your parents were your guardian angels. They’d cover your textbook and insurance tabs. Chances are, they even donated the family beater for you to drive. If they lived close enough, your laundry would be washed and folded, as if by magic. You probably considered yourself independent. In reality, you had a safety net until you graduated and moved away. Then, you were on your own to foot your own bills.

After spending a few years building their resumes, many professionals are boomeranging back to their parents. No, they aren’t take refuge in their basements to enjoy free cable and stocked fridges. Instead, they are looking for their parents to help pay for their MBAs.

According to the Graduate Management Admission Council (GMAC), 44% of applicants to graduate business programs planned to hit up their parents for funds to pay for their advanced degrees (a 6% climb over the past five years). In fact, 20% expected their parents to pay more toward their degree (also a 6% jump) than in 2009.

No wonder millennials stay so close to their parents!

Then again, it’s not just full-time students with their hands out. GMAC also reports that 9.5% of prospective Executive MBAs, many of whom have been working for a decade or more, plan to make the same solicitation to their parents. So much for an early retirement, huh?

And parents can expect both their daughters and sons to pitch them on sponsoring their education. Across all degree programs, GMAC reveals that 47% of females and 42% of males believed their parents should help pay for graduate school (with women and men expecting parents to foot 23.1% and 16.8% of their education, respectively). While some anticipated paying back their parents over time, others believed it should be a gift.

Talk about an early inheritance!

In fact, only 49% of respondents intended to take out loans for their schooling – and most planned to carry smaller debt. Perhaps they expect their parents to open a reverse mortgage (Thanks, AARP).

So is entitlement driving this trend? Maybe…but there are economic factors at play, too. For example, lower debts free graduates to pursue lower-paying public service or not-for-profit jobs – or even engage in riskier entrepreneurial ventures. It also balances the scales for international students, who often earn less overseas than their American counterparts.

Where is the expectation that most parents will reach into their wallets? China. Specialized master’s programs in finance and accounting are highly popular with Chinese citizens, many of whom want to study abroad. These students have long looked to their parents as a major source of funding, and from 2009 to 2013 the portion they expect parents to pay has risen as they expect grants and scholarships to cover less of the cost. Some 53% of Chinese students, up from 40% in 2009, expect their parents to pony up.

At the University of California-Davis, nearly two-thirds of overseas students received aid from their parents, compared to 37% of American students. For example, Rahul Churiwala, who worked in consulting and his family’s aluminum business before enrolling, struggled to save enough to cover tuition and living expenses in India. To help, his parents are shelling out for 80% of his education, with Churiwala hoping to make it up in tech marketing before transitioning to a startup.

Then again, students should beware. As any VC-funded entrepreneur can attest, investment comes with involvement.  There is no such thing as free tuition. Just remember this warning from Marc Zawel, who co-founded the admissions consulting firm AcceptU: “It becomes more of a ‘we’ conversation the more parents are footing the bill.” In other words, students shouldn’t be surprised if they’re questioned and second-guessed when it comes to their educational choices. They are parents, after all.

Average Expected Financing Mix For Graduates Business Students Worldwide

 

Source: GMAC

Source: GMAC

DON’T MISS: HELICOPTER PARENTS HOVER OVER B-SCHOOL TOO

Source: Wall Street Journal