The Most Diverse Business Schools

Worried-About-Tax

Figuring Out How Much Business School Will Really Cost

 

Good news: You got accepted into business school!

Bad news: It’s going to cost you…a lot.

Sure, business school may be your ticket to six figure starting salaries and $40,000 signing bonuses. Before that, you still need to put down a deposit and take out a loan.

That $42,000 average debt number you hear bandied about by the New America Foundation? That doesn’t really cover the big name, big ticket schools. Have your heart set on Harvard? Well, tuition is $58,875 a year. Your living expenses are another $25,507 (a year) and you still need to pay $10,718 up front. Despite lavishing more scholarship money on students than anyone else, the average debt is $78,991 – and 57 percent of students carry it after graduation.

And Harvard is middle of the pack among the top schools due to the large amounts of scholarship aid it hands out to students. New York University? The average is $116,533. Kellogg? Get ready to pony up $91,834. Darden…Try $102,968. If you think a scholarship will save you, remember this: Everyone believes they merit a scholarship. Everyone.

According to U.S. News & World Report’s Delece Smith-Barrow, MBA students can save money through channels like “consolidating undergrad loans, cutting back on leisure activities or increasing personal savings.” However, there are several factors – and strategies – to consider that can help students pinpoint how much money they’ll need (and how to alleviate some of the burden). Here are some strategies from U.S. News to consider:

First, apply Sales 101: Build a relationship with admissions staffers. Why? They know who is getting what – where to find some extra aid dollars. That means building personal relationships with staff, including visiting campus, so they can put a face with a name. In doing so, you can create a champion to go to bat for you, notes Ted Evans, an admissions manager at Case Western Reserve University’s Weatherhead School of Management.

Second, know what scholarships are available and whether you would truly be a good fit. To do that, Monica Moody Moore, the assistant dean of admissions and financial aid at the Carey Business School at Johns Hopkins University, encourages applicants to ask questions like, What’s the profile of those who earned money?” and “What’s the median of what they earned?” In addition, look at outside organizations such as the Forte Foundation to learn about potential support for students like you.

Third, take an inventory of potential costs, factoring in variables like class trips, club activities, and competitions. Those costs quickly add up and blow apart even the most carefully-planned budgets.

Finally, don’t forget to factor in your deposit. “You may deposit in May or April, and you may not get that deposit back until after the first day of classes in August or September,” Evans points out.

DON’T MISS: COST OF AN ELITE MBA NOW EXCEEDS $200K

Source: U.S. News & World Report

Questions about this article? Email us or leave a comment below.