Scholarships are available in every program, based on either need, merit or both. Universities use them to alleviate some of the costs for less affluent candidates, as well as to entice top candidates who presumably have been accepted to several programs. Scholarships typically amount to several tens of thousands of dollars per year, but full-tuition ones are also available. Application processes vary from school to school and from scholarship to scholarship.
A variety of financial institutions in the US and beyond offer loans to MBA students. Loan terms are designed to match the realities of student life, so repayment does not start until after graduation, usually in addition to a grace period. The conditions vary by institution, and many require a local cosigner with good credit. Several lenders do not require cosigners and are popular with international students, though higher rates may apply, admittedly.
MBA sponsorship programs are not uncommon among large employers, particularly multinational corporations. Funding ranges from partial to full tuition in exchange for a commitment to return to the company for a certain period of time after graduation. An applicant working for a sufficiently large employer is encouraged to investigate whether such a program already exists or, alternatively, to consider proposing one if circumstances permit.
Scholarships, loans, and employer sponsorships typically cover the lion’s share of the MBA's upfront costs. However, there is usually a remainder to be paid, for which students receive assistance from their immediate and extended families after explaining the expected gains and discussing reimbursement options. In addition, MBA candidates who plan their applications early tend to accrue some savings, allowing them to partially fund their studies.
According to surveys among MBA candidates, scholarships are the most commonly used method of funding one’s studies, with 59% of candidates taking them. Loans, parents, savings, and earnings are next in popularity, with 49%, 46%, 46%, and 44%, respectively. In terms of actual costs, scholarships cover 24% on average, followed by parents with 21% and loans with 20%.
