Higher education often opens new vistas of growth and expansion in your career. However, many people debate the efficacy of a higher degree such as Masters of Business Administration (MBA) particularly because of the exorbitant costs of attendance.
Many students who choose to fund their own MBA, graduate with a lot of debt, and that prospect deters people from pursuing it. Many people wonder if they will be able to repay the debt and if the struggle is worth it at all.
However, if you plan the finances of your higher education, be it an MBA or any other course for that matter, you can reap innumerable benefits from the same. You need not be stressed about the funding, especially if you believe the course will boost your career.
According to 2021 data of the National Institutional Ranking Framework (NIRF), the tuition fees of the top ten management colleges in India can be as low as almost two lakhs (Faculty of Management Studies, Delhi) but also as high as around 33 lakhs (Indian School Of Business, Hyderabad). The tuition fees of six out ten of these business schools is above 20 lakhs.
Sai Bhosale, a chartered accountant and financial advisor gave tips on how to finance your higher education, especially an MBA. Here are the options she suggests one to consider when looking to fund their postgraduation.
Family Funds
If your parents have a fund set aside for your higher education, then using that is a no-brainer. Even if you want to sponsor your own education, you can always take it as a loan from your parents. At least that way, you will save up on the interest levied by financial institutions.
Self-Funding
Saving right from the moment you make up your mind for higher education, you should cut down on your expenses and save for the student life in future. This could be done by cautiously utilising your current income to save for the future or by taking up part-time jobs to pay your fees. Part-time employment would require you to work harder to manage your time for studies.
Soft Loans from Relatives and Friends
The most convenient way to finance your MBA is to take loans from friends and relatives at concessional interest rates and interest rates below the market rates. Such loans do not impact credit rating or credit score.
Sponsorship from Employer
Some employers provide financial backing for pursuing higher education like MBA to increase loyalty and productivity. Employees should include how the company will benefit from the MBA degree in their pitch.
Scholarship from Foreign Universities and business schools
If you are looking to pursue an MBA or an equivalent degree from a university or institute in a foreign country, make sure to research if such universities give sponsorships to students from different countries. For example, business schools like Harvard Business School and Columbia Business School offer both need- and merit-based scholarships to international students. In fact, schools like Harvard, Yale, Princeton, Massachusetts Institute of Technology (MIT), and Amherst in the US are need-blind, even for international students. It means that these admit students based on merit, even if they cannot afford the cost of attendance, in which case, they provide financial aid, often to the extent of full-funding.
Student Grants
One can seek financial aid in form of grants from the government, Non-Profit Organisations, or private organisations. Students can request such grants by submitting proof of family income.
Education Loans from Financial Institutions
MBA students can take loans with or without collateral from banks and financial institutions to cover the cost of fees, books, living expenses, etc. Though interest cost is an extra burden, achieving your education goals without any favours from family and relatives can make you feel proud.
Also Read: 5 Factors To Consider Before Taking An Education Loan