How do I fund my business school degree? 

With the potential for opening vast career opportunities and driving lucrative salary increases, it’s no surprise that studying an MBA or business master’s program comes at a cost.

While it’s more than likely that you’ll see a significant return on this investment, going to business school requires careful financial planning. Alongside tuition fees, additional costs such as living expenses, accommodation, and transportation can add up.

However, there are a number of ways that you can help cover your study costs—from student loans to scholarships or even employer funding. Often students use a combination of these methods.

So, here are some of the options available to you when funding your MBA or business master’s.

How to fund your MBA or business master’s

Scholarships

Across the globe, business school applicants will find there are a range of scholarships, fellowships, and grants available to them, typically in the form of direct funding or tuition waivers.

Many business schools offer both merit and need-based scholarships, though often these have limited availability and can be competitive as a result.

Some schools also offer scholarships for all, meaning that everyone who applies for the program is automatically considered for financial aid. London Business School, for example, automatically considers all admitted students for its scholarships.

There are also specialist scholarships available tailored to particular profiles, based on specific industries, locations, demographics, and other criteria.

The GMAT Talent and Opportunity Scholarship, for example, is open to all applicants based in Europe, but is particularly aligned with applicants from groups who have been historically underrepresented at business school. Winners receive awards worth around €5,300 ($6,150)—including a voucher for the GMAT exam, access to practice exams, and a preparation program— helping to cover the costs associated with business school.

Student loans

Depending on where you opt to study and whether you’re applying as a domestic or international student, you may be eligible for government loan schemes. In some cases, these loans will cover the cost of tuition while also contributing to living expenses; other federal loans may cover smaller amounts and therefore require additional funding alongside them.

Alongside federal loans, private providers also offer funding options. Companies such as Ascent—one of Nerdwallet’s highest rated funding providers and an organization that GMAC is collaborating with—offer private loans with flexible repayment options to help cover the cost of going to business school.

Employer sponsorship

Another potential option to help cover the cost of business school is to speak to your employer about sponsoring your program. Large companies often sponsor business school degrees for high-performing employees, particularly in industries such as consulting, finance, and technology.

Sponsorship can cover full or partial tuition, usually in exchange for a commitment to return to work at the company for a minimum given period after graduation. The most common program type for receiving employer sponsorship is the Executive MBA (EMBA), though MBAs and other programs can also be covered in some cases.

Self-funding

Although it can be a significant investment, funding your MBA or business master’s yourself means you can focus on preparing for your studies without having to worry about future loan repayments or securing funding through employers or scholarships.

If you’re aiming to apply for an MBA or business master’s in the next couple of years, it can be helpful to get prepared and start planning your finances early, so you can begin building a savings strategy.

Financial support through other means—from family and friends or crowdfunding, for example—can also contribute to the funds needed to cover the costs of business school.

If funding is feeling like an issue, another option is to defer your application until next year’s intake—giving you more time and the flexibility to gather additional savings, apply for alternative funding options like loans or scholarships, and gain more valuable experience.

Consider your study format

While business school is an investment that’s renowned for delivering strong returns, there are also ways of approaching your studies that can be more affordable.

Full-time MBA programs taught in-person are typically the most expensive, while part-time or online programs can be less costly. Studying part-time also means you can carry on working throughout your degree, meaning you can continue to earn while you study and reducing the financial burden caused by taking time out of work. Studying a program online or at a local business school can also help reduce the costs associated with relocating to a new area.

When considering your study format, it’s important to weigh up your motivations and assess what you want to get out of business school. For example, choosing an online program may be more affordable, but you may miss out on valuable in-person networking opportunities.

Through careful consideration and financial planning, funding your business school degree doesn’t have to be overwhelming. Most MBA and business master’s students rely on a balance of these funding options to make studying possible and benefit from the professional network, career opportunities, and salary progression that business school provides.