How To Pay For an MBA Program

Many career paths require an undergraduate degree to enter the workforce, but some careers have a separate track for graduate degree holders. For those in the business world, enrollment in a Master of Business Administration (MBA) program is often viewed as the gateway to executive leadership positions and higher earnings.

Business school students may wonder if the cost of an MBA is worth it for their career, especially those with student loans from their undergraduate business degree program. The tuition cost might deter some aspiring MBA students, but this cost should be viewed as an investment in your future.

Paying for an MBA doesn't just mean taking out more student loans. There are multiple financial aid options that MBA applicants can consider to begin advancing their careers.

How Much Does an MBA Cost? In-Person vs. Online

The cost of an MBA will vary from school to school and other factors like part-time vs full-time status and whether the degree is pursued online or on-campus. The average cost for the program is just over $56,000.

On-campus MBA programs can vary, starting as low as $10,000 per year; however, many can cost over $100,000 for the entire program. Additionally, these rates can even be higher for out-of-state students. Online MBA programs are generally more affordable but can cost students anywhere from about $5,000 to $30,000 per year.

These programs have other benefits, though. On-campus MBA programs are run like other degree programs, meaning the costs go beyond tuition. Students will be expected to pay fees, living expenses, books and supplies, and more, sometimes doubling the total costs of your degree program.

Is It Worth Paying for an MBA?

An MBA can be quite an expense, but it can also greatly improve your resume for leadership roles. So, is an MBA worth it?

The cost of an MBA is worth it to most graduates. Evaluating the worth of any degree program should start with the types of career options available.

An MBA graduate will likely see higher earning potential than a BBA grad but this isn't a guarantee. For most MBA graduates, the costs associated with an MBA are made worth it by the higher average starting salary.

Are Online MBAs Taken Seriously?

Modern online degrees from accredited colleges and universities are generally viewed as equal to on-campus degrees. The school of business at most universities uses the same faculty to run online and in-person degree programs. These programs are also accredited by the same bodies that recognize on-campus learning.

Your online MBA program might not be taken seriously if it comes from a non-accredited school or a private, for-profit school with a ''degree mill'' reputation. Performing due diligence on an MBA program before applying can help avoid these complications.

Tips for Paying for an MBA Degree

Graduate schools have seen similar tuition increases as undergraduate degree programs. Even though MBA programs are generally worth it for students looking to advance their careers, costs are still incurred.

Multiple pathways allow you to pay for your MBA without relying exclusively on personal savings or loans.

1. Complete the FAFSA

Students should fill out their Free Application for Federal Student Aid (FAFSA) form every year that they attend a higher education program, including graduate degree programs. FAFSA is used to establish financial need and eligibility for free money financial aid programs like grants and scholarships.

Students may use FAFSA to cover an MBA, depending on their eligibility and other factors.

2. Explore MBA Scholarship Programs

You'll learn about your eligibility for grants and scholarships after filling out your FAFSA form, but there are free MBA scholarships you need to look into. These programs are often offered to students from certain demographic or career backgrounds to help cover the costs of MBA studies.

Jane M. Klausman Women in Business Scholarship

Zonta International offers the Jane M. Klausman Women in Business Scholarship. The scholarship is available to women of any age pursuing any business degree. Women attending online and on-campus programs can apply for this scholarship.

National Black MBA Association Partner Scholarships

The National Black MBA Association Partner Scholarship (NBMBAA) has awarded over $5 million to aspiring Black MBA students since 1972. Applicants must be members of the NBMBAA, have a GPA over 3.0, and attend an accredited university.

Military MBA Merit Scholarship

The Military MBA Merit Scholarship program is available to anyone holding an undergraduate degree and who has served in the American Military. Applicants must submit a form with a series of mini-essays. They must explain what their MBA studies mean to them and their educational motivation.

3. Review MBA Program Sponsorships

Scholarships aren't the only way that students can receive funding for their education. In addition to non-profit groups awarding scholarships, corporate programs can provide opportunities for employees to continue their education, while receiving support from their employer.

Some businesses offer benefits for employees to attend school, usually referred to as sponsorships.

Deloitte's Graduate Student Assistance Program (GSAP)

Deloitte is a professional services company that offers a program to their high-performing employees without a graduate degree.

Deloitte aims to be a destination for the best talent, and its benefits package includes the Graduate Student Assistance Program (GSAP) to help cover the costs of grad school. This program is available after two years of employment with the company.

Intel's Altera Benefit Program

Intel offers tuition assistance to students pursuing job-related degree programs, which can include MBA studies. Intel also covers education expenses for family members.

4. Discover Fellowship Programs

Fellowships are another type of funding that can cover education costs. These programs are generally merit-based and designed for graduate education, although some fellowship programs can be used for undergraduate degree programs.

Fort� MBA Fellowships

The Fort� MBA Fellowship is a program for women pursuing full-time MBA studies. Part-time MBA or executive MBA studies are sometimes approved for fellows at certain schools.

To qualify for this program, female students must attend a Fort� partnership school and be selected after applying for a fellowship.

Goldman Sachs MBA Fellowship

The Goldman Sachs MBA Fellowship is a financial assistance program for summer associates. In addition to a salary for the summer associate role, fellows will receive a $35,000 (before deductions) stipend to be used for MBA expenses.

Orbis MBA Fellowship

The Orbis MBA Fellowship is available to first-year MBA students pursuing an investment management related program. Students who receive the fellowship will be awarded $15,000 towards the full cost of their MBA.

5. Consider Student Loan Options

Student loans are one of the most common ways to pay for higher education. These loans come from both public and private lenders. Many students try to avoid loans due to interest and repayment.

For these loans, students usually have a deferment period for the first payment. Students can complete their degree program and begin working to save up for monthly payments. Though interest is a concern, student loans tend to have lower interest rates than other loans.

Private Student Loans

Private student loans are issued by institutions like banks and credit unions. They should be used to close any gaps left by free money programs and federal loans. Private loans require a credit score review before they're issued, which means the student may need a cosigner for approval.

Federal Student Loans

Federal student loans are issued by the government. There are four main types of federal student loans, with different requirements and total loan amounts.

These four types of loans include:

• direct subsidized loans
• direct unsubsidized loans
• direct plus loans
• direct consolidation loans