MIT Sloan | Mr. International Impact
GRE 326, GPA 3.5
Wharton | Mr. Investment Banking
GMAT 750, GPA 3.1
Wharton | Ms. Product Manager
GMAT 730, GPA 3.4
Chicago Booth | Mr. Indian O&G EPC
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Chicago Booth | Mr. US Army Veteran
GMAT 710, GPA 3.7
Stanford GSB | Mr. Techie Teacher
GMAT 760, GPA 3.80
Duke Fuqua | Mr. Musician To Consultant
GMAT 710, GPA 1.6
Ross | Mr. NCAA to MBB
GMAT 710, GPA 3.2
Ross | Mr. Operational Finance
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Stanford GSB | Ms. S & H
GMAT 750, GPA 3.47
Columbia | Ms. Cybersecurity
GRE 322, GPA 3.7
Kellogg | Mr. Multinational Strategy
GRE 305, GPA 3.80
Kellogg | Mr. Defense Contractor
GMAT 730, GPA 3.2
Duke Fuqua | Mr. O&G Geoscientist
GRE 327, GPA 2.9
Kenan-Flagler | Ms. Big Pharma
GRE 318, GPA 3.3
INSEAD | Mr. Jumbo GMAT
GMAT 770, GPA 3.7
Duke Fuqua | Mr. 911 System
GMAT 690, GPA 3.02
Duke Fuqua | Mr. Agribusiness
GRE 308, GPA 3.04
Stanford GSB | Mr. 750
GMAT 750, GPA 3.43
Duke Fuqua | Mr. Tech Evangelist
GMAT 690, GPA 3.2
NYU Stern | Mr. Bioinformatics
GMAT 710, GPA 3.7
Harvard | Mr. Investment Banker
GMAT 750, GPA 4.0
Harvard | Mr. Bangladeshi Analyst
GMAT 690, GPA 3.31
INSEAD | Mr. Indian In Cambodia
GMAT 730, GPA 3.33
McCombs School of Business | Mr. Consulting Analyst
GMAT 700, GPA 7.7/10
Cornell Johnson | Mr. Emporio Armani
GMAT 780, GPA 3.03
Yale | Mr. Fencer
GMAT 740, GPA 3.48

How MBAs Are Financing The Degree

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The high cost of a graduate management education continues to be a key concern for prospective students and an important factor in deciding where they will apply and enroll, a new survey of prospective students by the Graduate Management Admission Council found today (May 10).

Would-be grad students in business generally expect using a variety of resources to fund their degrees although they expect to finance almost half of their education through a

combination of grants, fellowships and scholarships (26%) and loans (20%).

Baby Boomers and Generation Xers are more likely to rely on personal savings and earnings as well as employer support to pay for the costs of their education; whereas Millennial and Generation Z cohorts will be more dependent on parental support, according to GMAC’s prospective students survey.

There are also important gender differences to note within the expected

financial mix for different age groups. Among prospective students 24 years of age and younger, men are more likely than women to rely on loans and personal savings, whereas women expect to rely more on parental support. Among those aged 24 to 30, women are more likely to rely on spousal or partner earnings and employer reimbursement than men their age, who expect to rely more on loans. Among those aged 31 and older, women will rely more on a spouse’s or partner’s earnings and men will rely more on personal savings.

EXPECTED SOURCES AND MIX OF FUNDING TO PAY FOR THE DEGREE

Source: GMAC 2016 Prospective Students' Survey

Source: GMAC 2016 Prospective Students’ Survey

Prospective students who are employed and who plan to continue working full-time while attending business school face challenges related to levels of employer funding, which continues to decline, GMAC said. Currently, 45% of this group anticipates receiving employer tuition assistance or reimbursement to help pay for their education, down from 54% in 2009. In addition, these individuals anticipate their employer assistance will cover, on average, just 52% of their educational costs, down from 55% in 2009.

GMAC claimed that employers who help finance their employees’ graduate management education often reap multiple benefits as a result of their investment, ranging from workers who now have acquired new skill sets to improved employee retention. Three in five (62%) prospective students who expect employer tuition assistance intend to remain with their current employer versus 26% of those not receiving such assistance. Among candidates most likely to anticipate using employer-funded tuition (e.g., those currently employed who plan to continue working full-time while completing their degree) are women, candidates in entry and mid-level jobs, and those interested in professional MBA programs (see table below).

PROSPECTIVE STUDENTS EXPECTING EMPLOYER HELP IN PAYING TUITION

Source: GMAC 2016 Prospective Students' Survey

Source: GMAC 2016 Prospective Students’ Survey

About The Author

John A. Byrne is the founder and editor-in-chief of C-Change Media, publishers of Poets&Quants and four other higher education websites. He has authored or co-authored more than ten books, including two New York Times bestsellers. John is the former executive editor of Businessweek, editor-in-chief of Businessweek. com, editor-in-chief of Fast Company, and the creator of the first regularly published rankings of business schools. As the co-founder of CentreCourt MBA Festivals, he hopes to meet you at the next MBA event in-person or online.