The post How to finance your Mba Abroad appeared first on Jamboree India.
While you are considering which B-School to attend, alongside building your application, you will want to take time and consider which are in your budget and explore various funding options available.
In this blog/article, you will find information pertaining to funding options and tips on choosing a B-School based on your budget.
Various funding options for an MBA abroad:
- Scholarships
- Assistantships
- Loans
Funding Options: Scholarships
There are a few different ways to fund your education. One of the most sought-after options would be Scholarships as they are given to the student and do not have to be returned – unlike a loan.
Let’s discuss the “kinds” of scholarships available to students.
-
Merit-based scholarships
Merit-based scholarships come in the form of a tuition waiver. Which means you will have anywhere between 10% to 100% of your tuition fees waived. You will still be responsible for any remaining tuition and your cost of living at the University.
As an international student attending college in the US, the cost you incur will be approximately 1.5 to 2.5 times greater than what a local student (from the state the University is in) will incur. This is true for students living in the US and attending a University in another state as well. There is a possibility that you could be offered the lower overall cost that a state resident pays as opposed to a student entering the college from another state or country. This would result in paying a significantly less amount, and is typically referred to as a “Non-Resident Scholarship.”
To be considered for a merit-based scholarship, you are not required to provide any extra papers. You will be automatically considered based on your profile as part of your application process. If you are in the top students applying, approximately the 5% to 10%, you will more than likely receive a scholarship.
-
Diversity scholarships
Another scholarship to consider is a diversity scholarship. This one is as it sounds, it is based on your unique circumstances. One example would be the scholarship open to women applying to Carnegie Mellon University. There are many categories to explore if you are interested in a diversity scholarship. We advise you to search for the specific scholarships available through your chosen university’s website. More often than nought, there is a section in the online application with the requirements for such scholarships and instructions on how to apply. To be considered for a diversity based scholarship you will be required to write a separate essay.
-
Needs-based scholarships
A handful of universities also offer a scholarship based on whether a student has a genuine financial ‘need’ to have part of the tuition covered. Here you would be required to provide an essay describing why you need this stipend.
Things to consider for scholarships
-
Merit-based scholarship “may” cover up to 100% of tuition while the diversity and need-based scholarships will only cover a portion and not the tuition in its entirety. Neither scholarship will cover the costs of living expenses, you will need to cover those.
-
At times, scholarships are granted when a student is admitted. However, if you are not offered one at that point, do not panic – you might also receive one after you have started your MBA abroad program.
- Merit and need-based scholarships are available for one-year programs.
Funding Options: Internships & Assistantships
An internship is a set time that a student is required to work as a paid intern and is often, part of the program. Though the amount won’t cover everything, the costs of tuition and living can be offset by the amount you earn. However, not all programs offer internships. If you believe you will need this, look for a program that offers internships as an integral part of their program.
-
Teaching Assistantships v/s Research Assistant
In the US and Canada, another funding option available to students comes in the form of an assistantship. Some of your tuition or cost of living expenses can be alleviated if you are awarded an assistantship. During an assistantship, the student is required to work for up to a maximum of 20 hours weekly. For a TA (teaching assistantship) you would perform tasks that assist the professor(s) in classroom duties whereas as an RA (research assistant) you would be required to assist with a professor’s research.
These are difficult to secure, so remember to do your own research on the individual university websites prior to applying. Most international students are more likely to be assigned a research assistantship over teaching when one is able to obtain.
Internships and assistantships are not offered through one-year programs because those programs are faster paced, and there isn’t the time to complete academics alongside internships or TA/RA.
Funding Options: Loans
The following are the kinds of available loans:
-
University loans without co-signer
- Does not require a co-signer, the university acts as the guarantor
- These are not based on your grades
- Most do not require collateral
-
University loans with a co-signer
- Requires a co-signer that is a resident of the country (US) either natural or immigrant and holding a green card
The common f of either university loan type is that they require the above as well as admission into the program. The rates are lower at approximately 8% to 9%.
-
US Banks through Intermediaries
Through intermediaries, you can apply for a student loan from US banks. Here the guarantor is the intermediary. For this, you will need to be accepted into a university on the intermediary’s list and meet any other requirements they stipulate. One advantage is the interest rate is lower than that of Indian Banks (at about 9% to 10%). As each establishment has their own regulations, you are encouraged to thoroughly research if you plan to take this route.
Examples of intermediaries:
- Prodigy Finance
- Empire Finance
Criteria for loans from Indian Banks:
- Usually, a collateral is required in the form of property
- Co-signer needed most of the time
- Interest rates are higher at 14% to 15%
Choosing a B-School Based on your Budget
- Look at loans and scholarships that are available
- Look at both tuition costs and your cost of living expenses
Tuition cost does not include your cost of living expenses. Remember to include both costs when looking at various universities. A university’s tuition might be higher in one location but the cost of living might balance any additional expenses.
Example: the program offered by London Business School (LBS) might cost less, but it is far more costly to live in London than say a university in France whose tuition cost may be slightly higher than LBS.
Points to Remember
- Though loans and scholarships are available for all full-time MBA abroad programs, they are not available for part-time programs.
- The amount of research and effort you put in will affect some, if not all, of the outcome.
Good luck in your endeavors!
Additional Resources
To schedule a one on one meeting with us – Please email us at [email protected]
For University deadlines, please visit: https://www.jamboreeindia.com/University-Deadlines
To see a complete schedule of our webinars please visit: https://www.jamboreeindia.com/webinars
Webinar on How to finance your MBA abroad
The post How to finance your MBA abroad appeared first on Jamboree India.
