How People Are Paying For The MBA
With MBA costs showing no signs of slowing down, b-schools are looking for different ways to help carry the financial burden.
Francesca Di Meglio, a contributor at Business Insider, recently discussed how MBA programs are helping students pay for their skyrocketing tuition costs.
One way b-schools are helping supplement out-of-pocket costs of education is helping to match pay for summer internships at startups or with nonprofits.
At Duke University’s Fuqua School of Business, the Summer Internship Fund “enables students to learn about the rewards and challenges of social sector management without making a significant financial sacrifice, and enables organizations who otherwise could not afford MBA interns to benefit from their experience.”
The aid program prioritizes students working for nonprofit organizations and non-governmental organizations, along with including aid for those working in non-impact oriented small businesses or start-ups.
“Duke University’s Fuqua School of Business Summer Internship Fund, sponsored by both school and student groups, matches what employers are able to pay to students interning with nonprofits, mission-driven businesses, or small businesses and startups so that those groups are able to benefit from the expertise of an MBA intern without significant financial sacrifice,” Allison Jamison, assistant dean of admissions at Fuqua, tells Business Insider.
Additionally, a number of top b-schools participate in loan forgiveness. According to Business Insider, schools like Yale School of Management and Stanford Graduate School of Business all provide loan forgiveness.
“In order to encourage MBAs to make meaningful contributions to social issues, economic growth, and political stability in organizations where salaries are typically lower, we offer a loan forgiveness program to reduce the financial impact of educational debt, by paying a percentage of graduates’ Stanford GSB loan obligations while they are employed in the nonprofit or public service sectors,” Kirsten Moss, assistant dean of MBA admissions and financial aid at Stanford GSB, tells Business Insider.
STUDENTS FINDING WAYS TO PAY
As tuition costs rise, students are increasingly coming up with creative ways to fund their MBAs.
“Students are paying for their tuition through a combination of savings, scholarships, and loans,” Soojin Kwon, managing director, full-time MBA program and admissions at University of Michigan Ross School of Business, tells Business Insider. “Additionally, some students are sponsored by their employers. Others take on part-time graduate assistant or teaching assistant jobs. And some companies will partially pay for a student’s tuition after the MBA graduate has been hired full-time.”
And while costs will continue to rise, experts say the MBA is still a worthwhile investment that will pay itself off in the long run.
“We estimate that even among the top 20 global MBA programs, which average an eye-catching $115,000 in total tuition, that it only takes 40 months or 3.3 years to pay back the investment,” Alex Chisholm, head of analytics at QS, tells Business Insider. “This break-even estimate includes the opportunity costs of forgone wages and living expenses during the program. Further, it seems that graduates from these top 20 programs can expect an average 10-year ROI of nearly $1 million dollars. This is a testament to the value of the degree and the premium employers still place on top graduates.”