For MBA applicants, it is already well known that obtaining their advanced degree will be costly and most likely require some combination of loans, financial aid and personal investment.
Some employers still fund or at least partially fund their employees graduate business education, however the number of companies still practicing this has dwindled in lieu of the our current economic state. Unlike a lot of private undergraduate schools, the offers of MBA scholarships based on merit are much harder to come by. While many student loan brokers are willing to approve much larger amounts of money for graduate students than undergraduate, it is important to know that there ARE scholarships out there, if you are willing to do some in depth research into a lot of different organizations, both public and private.
Recently Manhattan Review has had a number of raffle drawings and scholarship giveaways with partnering organizations. We are pleased to announce two of our recent raffle winners: Tim Brackrock and Ricardo Moraes!
- Better Score Guarantee – Unlimited Classes, Online Library & Advice
- Turbocharge Your GMAT Math/Verbal Study and Solutions Guides
- Extensive Quant and Vocabulary Glossaries
- Three on-line challenging Computer Adaptive Tests
- After-class Home Study Guideline provided
- Discount for Private Tutoring & MBA Admissions Services
- Discounted Access to Online Recording Library for tailored study
- US$200 Student Referral; US$1000 Corporate Account Referral (applicable only for paying students)
- Double Your In-Person Class Hours with an Online Course at No Additional Cost (up to 56 Hours of Total Real-time Instruction Hours)
Ricardo Moraes in Brazil entered a photo contest sponsored by the MBA tour . He won a free online GMAT course (a $1,025 value), a set of Manhattan Review Turbocharge Your GMAT course books, and an Elite School Dedicated Package for 5 schools (a $5,500 value), worth a total value of $6,525. The Elite School Dedicated Packs are part of our MBA Application Review and Advisory Services and give you the end-to-end, comprehensive guidance for your entire admissions process.
Thanks to everyone who entered our drawings!
On Wednesday we discussed various loan and scholarship options for funding a B-school education. But what happens after you graduate and you must begin to repay those debts? Today we offer a few insights into managing your debts once you have earned your degree.
Loan Payment Plans
Schedule your loan payments around your budget. You can be in control of your repayment plan.
Debt management is an intractable issue associated with financing one’s education. Most loan providers are flexible in that a payment schedule can be worked out based on the graduate’s income; different providers will have different options and it is vital that these be understood. In some cases payment can be extended to 25-30 years after graduation. Sallie Mae, a major loan provider, requires on average a 10-year payment schedule with principal and interest fees due every month.
In some cases, an MBA can be tax deductible. This must be understood on a case-by-case basis, but typically if the student can prove that their MBA education supplements the career that they are currently engaged in, then their education can be tax deductible. For example, if a non-profit executive pursues and MBA in non-profit management, they could write off their fees. If a software engineer does the same they will not be able to prove that their MBA will enhance their ability in their current position, and they will not be able to write off their fees.
Today’s post is dedicated to US students looking to finance their MBA studies or non-US students looking for ways to fund a program of study in the US. The process of finding aid, whether it be need or merit based, can be trying although not impossible for students everywhere. In the end, you will need to decide if financing a business education is a good investment for you.
- Need-based Loans in the US
Both US and non-US students have the opportunity to apply for need-based loans. The process and loan providers are different for each group, however. One of the first places to look is a federal loan such as the Stafford loan, which has an 18,500 USD limit. The Stafford is available to US and non-US students but for the latter is more challenging: A non-US student must have a cosigner that is either a permanent resident or a US citizen. Some schools, such as MIT Sloan, will even commit themselves as a student’s cosigner.
The Stafford loan is a good first step because of the generally low interest rates associated with a federal loan vs. a private loan. In fact under a subsidized federal loan, the student pays no interest accrued while in school.
- Merit-based Scholarships
Research other opportunities that your MBA program of choice offers. Merit based scholarships are a possibility and should be researched despite the difficulty and competition associated with scholarships. In many cases, non-US applicants will be placed in the same pool as US students, which increases the competition. This should not be a deterrent because if a student is not granted the scholarship they may be put into an applicant pool for a different scholarship by the organization that will be granting them the aid.
Many programs also offer Teaching Assistant positions or fellowships. Each school is different, so again, check with your programs of choice.
Some MBA program have impressive financing options. For example,Wharton has a daunting price tag at 40,000 USD per year, but students typically secure summer internships at where they can make between 10,000 and 40,000 USD. Wharton also allows the student, either US based or international, to borrow up to 130,000 USD with varying interest rates to finance the student’s education and living expenses for the two years that they will be studying. Thomas Caleel, director of MBA admissions and financial aid at Wharton describes the school as “need-blind.” Their admission is based on merit exclusively yet the school guarantees financing for any student.
- Special Opportunities for non-US students
For non-US students, the International Education Financial Aid website offers a robust database for research financial aid and scholarship opportunities. The Institute for International Education has a similar database. Additionally, one can investigate via the US State Department’s Bureau of Education and Cultural affairs program called Education USA. This program is a network that provides information on studying in the US and importantly, includes information of getting aid.
- Acquiring financial aid takes persistence, focus, and organization. Look at the website of the school you are interested in and get detailed information on the financial aid services they offer.
- Remember: First look into a federal loan, and then do research on private loans to receive more aid. If you are not based in the US and require financial aid, research opportunities listed in the sites above.
- Be organized in your debt management. If it is possible, go visit the school’s financial aid offices.
- Realize that an MBA is an investment. The average salary of a MBA holder after graduation is 88,600 USD per year. It is difficult to put a price tag on the friendships, knowledge, and networks you will develop in B-School. Is this an investment you want to make?
Yale’s School of Management (SOM) recently made some significant adjustments to its core curriculum. The revised program enables students to take classes organized around constituencies such as customers and employees. Meantime, Yale’s SOM is looking to change its admissions process as a whole and increase the number of international students in its class. The school also announced plans for the construction of a new building. On December 11th a forum was held to discuss these various changes. Attendees were a group of prospective students and BusinessWeek. Bruce DelMonico, the Yale Admissions Director, and two Yale students, Abby Kowaloff and Michael McLaughlin answered their questions.
When asked to describe the purpose of the curriculum changes, DelMonico explained how the new program was designed to improve students’ learning experience in a broader way. He explained that the school’s goal is to train people for leadership roles in business. To do this, students need to learn to be able to cope with all the important aspects of the business world, including leading others. The new curriculum proposes to help make this possible.Questions emerged concerning the increase of the class size. It is estimated that about 300 or so more students will be accepted per year when this construction completes in 2011.
The admissions interview process was also a major topic. The audience was especially concerned with how interviewers prepare for an interview and how quickly they evaluate once it is complete. On-campus interviews are conducted by trained second year students. These interviewers have access to candidates’ applications before the interview. The interviewer will write a report of the interview usually within 24 hours in order to accurately evaluate a prospective student.Scholarship eligibility was another concern addressed. When an application is being reviewed, it is also decided whether a student merits a scholarship. If so, the notification will be sent out at the time of admission.
SOM is cited as having one of the lowest percentages of international students among top US B-schools. The panel explained how the admissions board is looking to not only increase diversity in regards to student bodies’ fields of study, but also to expand the diversity of the students’ origins. SOM would like their student body to reflect their international focus. Therefore, ongoing strategies have been implemented to have more interviews done out of the country to recruit international students.International Experience, SOM’s study abroad program, was a major topic as well. In this program a student travels for a 10 day excursion to study in a foreign country. These travels blend cultural exploration with top-level executive meetings. If you would like to read the forum in its entirety, simply follow this link.
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