How to Pay for Your MBA

Seeking higher education is anything but cheap, especially if you’re going for your MBA. But even though it’s going to cost a pretty penny depending on where you decide to go, think of it as an investment in yourself and in your future. Your future MBA can help you land a well-paying job at a Fortune 500 company or will inspire you to start your own business. If you’re thinking about going back to school to obtain your MBA, here are some tips on how to pay for it:
• Personal Resources - If you have a few years to plan and you’ve always known that you wanted to pursue your MBA, you might want to start putting money away now before you even apply. Many people pay for their MBA with their own money. Here’s a tip, think about opening a 529 in your name to help save. Not only will your investments grow tax free (as long as you use it to pay for your education) you’ll also potentially get a state tax deduction (make sure to check with your tax advisor)

• Loans - If you haven’t been saving all along and are ready to go to school this year, you’ll have to go with the old standby of loans. Educational loans are common with students seeking higher education since it allows them to borrow money needed for school and then pay it back later when they are making a much higher salary. There are federal and private loans that are available for students and depending on what you qualify for, each one has a different interest rate and payback program. You might even still be able to convince your parents to cosign your loan and get yourself a better interest rate.

• Scholarships - There is a lot of free money out there and you just have to apply for it for your chance at some of that money. And not all scholarships are from schools. Many charitable organizations still give money at the graduate level, especially if you are a under-represented minority in business school. All you have to do is research these scholarships to find out which ones you are eligible for.

• Military and Public Service Programs - There are a variety of military and public service programs out there that will help MBA students pay for school. U.S. Military veterans have several options, as well as those who work in the nonprofit/public sector.

• Alternatives – Many startups are entering into the MBA loan space. Places like Sofi and Upstart might be good options to check out. Also, your current or future employer might have a program to fund your education.

Remember, no matter how you pay for it, business school can be expensive. So before you go, make sure you figure out your expected return on this major investment. Do plenty of research to not only understand the tuition costs of the program, but also the cost of living of where your school is located. Also, take a look at the career reports from your target schools to try and figure out what your expected salary will be after graduation. Will it all be worth it? Only you can decide.