Funding

Your MBA
3

A BusinessBecause Guide
 Funding Your MBA
A BusinessBecause Guide

Introduction by Chioma Isiadinso, Expartus CEO ....................... 2

7 ways to fund your MBA .......................................................... 3

Self-Funding and Savings ............................................................ 4

Bank Loans ............................................................................... 5

Scholarships, Fellowships, Grants And Financial Aid ............... 6-7

Crowdfunding .......................................................................... 8

Prodigy Finance ....................................................................... 9

Company Sponsorship ............................................................. 10

Government Aid ................................................................... 11

MBA funding advice from three top business schools ............... 12

China Europe International Business School (CEIBS) ............... 13-14

Copenhagen Business School .................................................. 15

IE Business School .................................................................... 16

Introduction by Chioma Isiadinso
Business school is expensive. The average MBA program can cost over $200,000 after
you factor in tuition, cost of living, and salary forfeited during school. But the return
on investment in the MBA can be significant, with graduates from many top business
schools making over $100,000 in addition to bonuses and other compensations.

Despite the huge ROI, the initial sticker shock of business school tuition can
discourage some applicants from applying. The good news is that there are many
funding opportunities that are available to MBA applicants. Unlike other graduate
degree programs, MBA programs offer some of the most substantial scholarship and
financial awards available to both international and non-international applicants.

Investing early in research and identifying generous financial awards can give
applicants significant advantage in securing scholarships for their MBA studies.
Getting your financial house in order is key. Once you have decided to apply to
business school, you should immediately begin to aggressively pay down your debt
and keep a budget to save as much money as you can.

Applicants should also work hard to create the strongest application possible, so that
they have the best chance to receive merit-based awards. Begin by taking the time to
prepare effectively for the GMAT or GRE. A top test score can help make your
application much more competitive for merit scholarships. Also, business school
essays that are insightful and compelling, combined with strong recommendation
letters, will go a long way toward helping to convince the admissions board to award
you the scholarship or fellowship you are targeting.

Being proactive in your business school scholarship search can be the difference
between graduating from b-school with a ton of debt, or with little to none. However,
doing so will require humility, finesse, and insight into the schools financial aid
strategy.

This guide will help you efficiently research the best financing options for you and the
information will help you apply successfully for
financial aid at your dream school.

Chioma Isiadinso is an education entrepreneur and

co-founder/CEO of EXPARTUS, the first MBA
admissions consulting firm to integrate personal
branding into every aspect of the MBA admissions
process.

She's also a former Harvard Business School

admissions officer and the author of the Best
Business Schools' Admissions Secrets.

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7 ways to fund
your MBA
1. Self-Funding And Savings

Lets start with the simplest method of paying for your MBA, self-funding. As the
name suggests this requires candidates to cover the hefty costs of their education
themselves through one or a mix of savings, part-time work, the Bank of Mum and
Dad or even generous friends.

Even if youre not planning on funding your MBA with this method, its likely that
living costs will eat into your savings at some point when studying so its advisable to
put money aside well in advance of starting an MBA.

Utilizing this approach to cover tuition fees is typically only available to a lucky few,
but can be treated as an investment for those who are running their own company or
have entrepreneurial desires. The money invested will help you to hone new skills,
make connections and gain qualifications that will hopefully propel your career to
new heights on graduation.

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2. Bank Loans

A traditional source of funding for business education. In much the same way that
self-funding can be seen as an investment, banks see a business education loan as an
investment that will give a good return due to the high wages of MBA grads.

The availability of specialized bank loans has decreased in recent years however, and
high interest rates can be an issue. Banks also tend to be reluctant to lend
internationally, which means it is normally just an option for native students.

Some students have also reported that repayment plans can force their hands in
terms of securing a job on graduation, which can reduce the freedom to take risks and
pursue a dream career.

In addition to banks, the majority of MBA programs provide loans for students,
regardless of their country of origin. Applicants should consider this when researching
the schools where they plan to apply, in order to ensure that there are loan providers
available to them and to determine the loan criteria that they need to meet.

Make sure youve checked all the ins and outs of a particular bank loan before you
take one out.

The Professional and Career Development Loan from the Coop bank offers students
between 300 and 10000 to improve their career prospects. This is the only bank
still offering this loan in the UK: http://www.co-operativebank.co.uk/loans/career-
development-loan

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3. Scholarships, Fellowships, Grants And
Financial Aid

According to the Graduate Management Admission Council (GMAC), this is the most
popular method of funding sought by students today. Were assuming that the fact
most of them dont require repayment has something to do with it!

The popularity of financial aid means fierce competition however, and in order to
secure one you have to stand out from the crowd with it often being beneficial to
apply early with certain financial aid packages offered to early round applicants. To
secure this funding youll need to be a particularly good fit with a schools ethos and
values and demonstrate that you will be strong alumni.

Scholarships and fellowships typically fall into two categories: need-based and merit-
based with many of the top MBAs offering merit-based fellowships as a method of
attracting top talent.

If you can make a strong case for a scholarship or fellowship, the freedom from
repayment puts grads in a strong position without a large financial burden. Different
schools have a wide diversity of schemes ranging from Womens Scholarships to
Scholarships for Military Veterans.

Have a look at your target schools to discover what schemes are available.

5 examples of scholarships available from top business schools:

Chicago Booth: Merit-based Award Chicago Booth offers merit-

based awards at the time of admission to top applicants. These
are awarded to students identified as having excelled in
academics, work experience, and service to the community.

ESADE: Women of the World Scholarship awarded to women

with unique perspectives and experiences. Recipients of this
scholarship will be expected to make a positive contribution to the
ESADE Women in Business Club during their studies. It is a merit
and/or needs-based award.

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Hult: Global Citizen Scholarship Hult seeks individuals with a
global mindset who have the ability to bring professionals,
business ideas, and cultures together. They want candidates who
aim to bring down cultural walls and collaborate both inside the
classroom and the workplace and outside. This is a $10,000 award.

Cass: STEM Scholarship a 50% contribution to tuition fees is

available to all successful MBA candidates who demonstrate
outstanding achievement with a Science, Technology, Engineering
or Maths background.

HEC Paris: Foundation Rainbow Bridge scholarship a special

award for women from Asian or African countries affected by
natural disasters, drought of famine. The total amount can be up to
two scholarships of 20,000 a year.

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4. Crowdfunding

Once just a method of fund raising for Indie game and film-makers and trendy start-
ups, crowdfunding has grown in popularity as an MBA funding avenue. It takes
minutes to setup and there are established platforms out there for peer-to-peer
lending such as CommonBond and SoFi.

The catch with many is that they are only available for US citizens or permanent
residents and require you to be attending one of a select number of top schools.

Even if you are eligible for funding youll need to have a good story and a clear
business development strategy to drive potential investors interest in funding you.

Crowdfunding websites:

Kickstarter - https://www.kickstarter.com/

Indegogo - https://www.indiegogo.com/

Peerbackers - http://peerbackers.com/

Gofundme - https://www.gofundme.com

Rockethub - https://www.rockethub.com/

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5. Prodigy Finance
Sitting in the middle ground between crowdfunding and a loan, Prodigy Finance was
set up by three INSEAD grads whod experienced the difficulties of international
funding first-hand.

The company operates through a listed bond program where investors buy a stake in
an asset-backed bond, supporting a group of students, rather than offering credit to
individual borrowers.

Prodigy Finance exclusively funds international postgraduate students attending top

universities and to date have raised over $250 million for students who had little
other options.

While many crowdfunding platforms require you to be resident in the US, Prodigy
Finances model breaks from the norm and is able to offer funding assistance to those
in the trickiest situation.

Expert advice from Boaz Valkin, relationship manager at Prodigy Finance

In general, students should explore all

forms of financing for their MBA.
Research online and reach out to the
Financial Aid office of your relevant
schools to chat about your options.
As well as school scholarships, lots of
large corporate institutions offer MBA
sponsorships. Usually this means that
the institution will cover tuition fees
but the sponsored student is obligated to return to their employee post-MBA and is
required to work for a number of years otherwise they have to pay the company back.
If you come from a particular industry sector or have a particular business interest, there
may be special scholarships linked to your field.
Loans exist to fund MBA tuition fees and/or living expenses, often depending on the
school. Prodigy Finance is the leading option for international students. Some banks will
offer MBA loans but often at very high interest rates and will ask for collateral or a co-
signer. Prodigy Finance does not require any collateral or co-signers, offers a 6-month
grace period, no fees for early repayment and their whole process is done online.

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6. Company Sponsorship

Some companies will provide funding to further education on the caveat that you
commit to return after your studies, but this is another form of funding thats become
harder to secure in recent years.

If you can provide a strong case to your employer of the benefits of further education,
through improved performance or mentorship capability etc., then it is a simpler
funding method than some of the others listed.

Its not recommended for those seeking an MBA in order to change careers or
industries as leaving a sponsoring employer often comes with the penalty of having to
pay back the sponsorship in full.

GMACs latest prospective students survey revealed that the MBAs who received the
most company sponsorship were more likely to stay with their employer after
graduation, so its really in companies interest to make this funding more readily
available.

Companies who are big on sponsoring MBAs:

Apple Boeing Disney Starbucks Google

UPS Gap Intel Procter & Gamble

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7. Government Aid

Different countries offer different forms of government loans for higher education.
In the UK, Masters loans are available of up to 10,000 with no obligation for this to
be spent on fees. While this wont cover the average costs of an MBA program, it
doesnt need to be repaid until you are earning in excess of 21,000 with repayments
arranged as a percentage of your income.

The US government also offers loans for further education. Federal loans, in the form
of Stafford Loans and Grad PLUS Loans, can cover the entire cost of potential students
MBA fees, but have more intense repayment schemes than the UK equivalent
depending on which you go for you can expect to be paying interest on the loan while
you study.

As with bank loans, its vital to read all of the terms and conditions before applying for
one of these forms of funding.

A UK Government Career Development Loan of up to 10,000 is available for British

Citizens seeking to further their career prospects: https://www.gov.uk/career-
development-loans

US Stafford Loans, both subsidized and unsubsidized, can be found

here: https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized
US Grad PLUS Loans are available here: https://studentaid.ed.gov/sa/types/loans/plus

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 MBA Funding
Advice From
Three Top
Business Schools
https://www.linkedin.com/school/14457?pathWildcard=14457

China Europe International Business School

By Steven Ji Assistant Director of MBA Marketing, Admissions and Financial Aid

Similar to many top-tier business schools, CEIBS recognizes

that financial aid is an important consideration for applicants
comparing MBA programs, but we feel that it shouldnt be the
ultimate factor in deciding whether students are able to
attend their dream school. In fact, our MBA Class of 2018 has
benefited from a record amount of financial aid; 70% of the
cohort was able to access funding to cover between 40 to
100% of tuition costs.

Our scholarships fall into two categories: school-sponsored

and company-sponsored. School-sponsored scholarships
cover a broad range of categories including women leaders,
diversity, and entrepreneurship. Company-sponsored
scholarships are generously donated by our successful alumni,
Facts Box: many of whom have gone on to occupy C-suite positions. Not
only do they give back to the school with scholarships
Location: Shanghai, China covering up to full tuition, but they are also actively involved
in mentoring scholarship winners throughout their MBA
journey.
Course length: 18 months
As far as recent developments go, in 2015, one of our alumni
Financial Times Ranking: companies initiated the CEIBS Talent Loan Programme, or
11 Dishuiquan in Chinese. The name originates from an ancient
Chinese saying about how modest drops of water can
Average GMAT: 686 accumulate over time to form great lakes, which can also
describe alumni giving back to their alma mater. This fund
Cost: $58,000 allows CEIBS to provide means-based low interest loans to
our MBA students, so that qualified applicants do not miss
out on the opportunity to enroll in the CEIBS MBA Program.
Prodigy Finance partner
Another popular choice is financing through Prodigy Loans,
school which enables international students to study at the worlds
top business schools, including CEIBS.

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https://goo.gl/KTrZcY

Not only is CEIBS located in one of the

worlds most dynamic and exciting cities,
the cost of living in Shanghai is relatively
low compared to many other financial
capitals. This helps ease our students
financial burden somewhat, for example
on-campus living can be as low as $435 per
month.

My advice to applicants is two-fold. First,

apply early as many of our merit-based
scholarships are allocated within the first
two rounds of admissions (November and
January). Second, check the criteria and
deadlines carefully; applicants will be
automatically considered for our school-
sponsored scholarships, but additional
materials may be required to apply for
company-sponsored scholarships.

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https://www.linkedin.com/school/2151?pathWildcard=2151

Copenhagen Business School

By Matthew Harland Admissions Manager, Full Time MBA

Funding your MBA can be one of the most intimidating

investments to make for your career, however, at the same
time one of the most rewarding investments you make for
yourself. Someone once told me funding comes from the 4
Fs: Family, Friends, Financial Institutions and Fools. My
advice to any one is to make a financial plan that makes sense
to the individuals situation.

There are the two obvious financial elements to a MBA which

include the tuition fees and living expenses. Many students
have savings for their living expenses and utilize external
funding options for their tuition fees.

On a personal level, I found it was important to find the right

programme and cultural environment which suited my post-
Facts Box MBA ambitions. I was also looking for a 1-year programme
where the opportunity cost of being out of work for 2-years
Location: Copenhagen, was much better.
Denmark
Furthermore, funding your MBA programme is not just about
your pre-MBA situation but more so about your post-MBA
Course length: one year
situation because this is when you will start to repay your
investment. Coming from Australia, it was important to be
Average GMAT: 620
somewhere where post-MBA salaries were just as high if not
better and that for me was Denmark. Hence if you choose to
Cost: $48,000 use banks or funding providers like many foreign students,
then youd like to pay back your loans as quickly as possible
and you have a much better chance at this when your post-
MBA salary allows.

Scholarships also play a role for the minority of students.

These are often very competitive and dont necessarily take
into account living expenses and therefore may only reduce
the overall tuition fees.
Overall, I think it is important to be realistic and creative, but
not afraid to take a risk everything works out in the end, it
always does.

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http://www.ie.edu/business-school/the-school/campus/

IE Business School
By Beatriz Prez Olmos Associate Director of Financial Aid

When considering applying to an MBA it is extremely

important to develop a realistic financial plan that will
allow the candidate to afford both the tuition fees and
living expenses.

We always urge our future students to concentrate on the

following three sources when it comes to financing an
MBA; savings, corporate sponsorship, and student loans.

Personal savings is critical when creating a financial plan,

candidates applying to IE usually start saving for their MBA
at least one year in advance. Personal savings is one the
most common source of funding and typically allows
students to cover their living expenses and part of the
tuition fees.
Facts Box:
Corporate sponsorship is also a popular source of funding,
Location: Madrid, Spain however it is also one of the most complicated to obtain
since it depends on company policy and usually requires
Course length: one year students to go back to their previous company after
graduation so, if you are looking for a career shift this may
FT Ranking: 8 not be the best option for you.

Cost: $77,000 Finally student loans are a great source of financing since
financial institutions offer a wide range of repayment
Prodigy Finance partner options and conditions.
school
In order to cover the remaining cost of tuition students
often turn to other means such as IE scholarships, external
scholarships from local foundations or other organizations,
or government aid.

These are just a few of the many options our students have
utilized to fund their MBA program. The Financial Aid
Department of IE is always available to talk to students
about their options and provide support in order for them
to create a sensible financial plan adapted to their different
circumstances.
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