Funding an MBA
Funding an MBA
While the future benefits may be considerable, choosing to study for an MBA is not a cheap option. £8,000 - £12,000 is an average course fee price, with some schools charging in excess of £20,000. Thus, with the addition of living, a one-year residential course at a leading business school could easily cost you £30,000.
This is why many choose to study part-time. 80% of part-time and distance learning MBA students are funded (at least in part)by their employers. For the remaining 20%, and most full-timers,however, funding can constitute a major obstacle. Below we take a look at the various options available to the prospective MBA student.
There is a definite dearth of MBA funding opportunities – perhaps highlighting the fact that the course is regarded as self-investment in an individual’s future rather than being of general benefit to society. But although it might be tough, freedom from the “golden handcuffs” of your employer can be a distinct advantage.
Association of MBAs
If you do decide to take the plunge without the protective arm of a benevolent employer, one of the most popular options is the Association of MBAs' loans scheme, operated through National Westminster Bank. This allows full-time students to borrow up to two-thirds of their most recent salary on top of tuition fees for each year. Different arrangements are also available to part-timers and distance learners.
Scholarship
Another option is scholarship. Many institutions offer a very limited number of bursary opportunities, awarded on merit. Adjudicators generally take into account academic excellence and varied work experience. In many cases, evidence of contribution to the community is also welcomed.
A tiny fraction of the nation’s MBA students are currently funded through professional bodies. The Engineering Construction Industry Training Board (ECITB), for example, provides financial support for eight students at Henley.
Prospective students should also look out for business school scholarships offered in conjunction with national newspapers. These are normally judged on the submission of an essay.
Loan schemes
An increasing number of bank loan schemes are also available through individual institutions. Manchester Business School has a scheme with HSBC open to all full-time MBA students. This covers living expenses plus two-thirds of the pre-student salary or £5,000, whichever is greater.
Along with all these specific MBA options, you should also remember that the Department for Education and Skills (DfES) offers career development loans (up to £8,000 for course fees, materials and living expenses) to students on any course of two years duration or less.
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