How to Pay for Your Accelerated MBA Tuition

Most professionals today wouldn’t argue the value of getting an MBA. Regardless of your area of expertise or industry of focus, an MBA gives you that competitive edge by equipping you with the skills required to take on tasks of greater capacity and snag leadership positions in any institution or business. With an MBA, you can make as much as 28% more than those without it.

If you plan on running a business, earning an MBA is also an excellent starting point for building your entrepreneurial skills.

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The following are the commonly known advantages of an MBA degree:

Greater awareness of the global industry
Enhanced communication and time management skills
A wide professional network
Access to greater employment opportunities

Today, numerous business schools offer the MBA programs, each with its own standout features. If you’re planning on earning an MBA degree, plan for its cost. According to NCES, an MBA student spends an average of $20,513/year in tuition and fees alone.

Furthermore, tuition and fees aren’t the only costs associated with an MBA degree. Indirect expenses increase over the years, too, with general inflation.

By now, the question running through your mind is, “How to pay for accelerated MBA tuition and fees?” Finding the right answers will mean all the difference in your MBA journey. You can either earn an MBA degree or drop out of an MBA program.

Here, we’ll discuss the wide range of financial aid options available for MBA students. Be sure to consider every option, from federal financial aid to scholarships. Every cent matters in financing your MBA journey.

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Understanding the Costs of an Accelerated MBA

The total cost of attendance in accelerated MBA programs consists of two parts:

Direct expenses

These are the tuition and fees that are directly related to your business education. Accelerated MBA programs usually have higher tuition and fees than traditional programs, too.

Examples of accelerated programs and their direct costs:

Babson College one-year MBA $89,550/year
Cornell University one-year tech MBA $129,918/year
Western Governors University MBA program that can be completed in one year costs $9,510/year

Indirect costs

These are non-billable expenses but are a must for attending an MBA program.

Books and other course materials
Technology requirements, such as a personal computer with software and an Internet connection
Living expenses, such as transportation costs
Miscellaneous costs, including health insurance

In general, direct costs comprise 60% to 75% of your total cost of attendance. When you’re considering how to pay for accelerated MBA tuition, think of it.

You must find financial aid for tuition and fees first. But be vigilant about financial aid for indirect costs, too. If you combine every financial aid, you can earn your MBA degree with little to no student debt.

Scholarships and Grants

Look for scholarships for accelerated MBA programs first. Think of them as free money, but you must be diligent in looking for and applying for them.

Merit-based scholarships are available through colleges and their MBA programs. Scholarship databases are excellent sources. Ask about scholarship programs offered by business companies and organizations.
Need-based scholarship programs choose recipients based on demonstrated financial need.
Specialized scholarship programs target specific populations, such as minority groups, veterans, and women.

Scholarship and grant programs usually have competitive selection criteria. Be sure to follow application instructions and deadlines.

Employer Tuition Assistance Programs

Ask about employer tuition assistance for MBA students from your current employer. You can also consider choosing an employer based on the educational benefits offered.

Many large organizations offer educational benefits that you can consider. Procter & Gamble, Walmart, and AT&T are notable examples. Full or partial payments of MBA tuition and fees are available.

These employer-funded scholarship programs pay for MBA tuition in various ways, too.

Reimbursements made to employees
Direct-to-school payments
Employer-college partnerships resulting in discounts on tuition and fees

Being an MBA student while employed isn’t easy. You can adopt these useful tips to maintain a good work-study balance.

Adopt effective time management habits.
Keep open communication with your employer about your work and academic obligations.
Request for flexible working hours or remote work arrangements.
Take advantage of student support services.
Pay attention to your physical and mental health.

Here are tips, too, for negotiating with your employer for financial aid.

Be informed first about the terms and conditions of the employer tuition program.
Highlight the possible benefits of your MBA education to the company.
Recommend a service obligation in exchange for tuition aid.

Federal Financial Aid and Loans

Federal financial aid for MBA students includes:

Direct Unsubsidized Loans
Grad PLUS Loans

Both loans have more affordable interest rates and favorable terms than private loans. You must file your FAFSA and submit it on or before the deadline.

Check out programs for loan forgiveness for MBA graduates, too. You will make 120 monthly payments and apply for forgiveness on the balance.

Private Loans and Financing Options

Private student loans for MBA are different from federal loans in many ways.

	Private Loans	Federal Loans
Credit checks	Use your income and credit score	Aren’t typically subjected to credit checks
Interest rates	Variable rates	Fixed rates
Repayment terms	Less flexibility	Offer deferment, repayment plans, and forgiveness options

Finding a reputable private lender is possible with these tips:

Go for established credit lenders, such as Sallie Mae.
Use comparison tools to compare terms and conditions.
Always understand the terms and conditions.

Check out income-share agreements for MBA students, too. You will pay your loan after graduation with your payments based on your income.

You may want to consider crowdfunding and peer-to-peer lending options, too. Indiegogo and GoFundMe are popular crowdfunding platforms. Prosper and Lending Club are known P2P platforms.

Military Benefits and Veterans Assistance

The most notable examples of military benefits for MBA programs are:

The Post-9/11 GI Bill covers in-state tuition and fees and provides a book stipend and monthly housing allowance.
The Yellow Ribbon Program covers the excess of tuition not covered by the GI Bill.

Check out military-specific scholarships and grants, too.

Tillman Scholars Program
MBA scholarships for military-connected students
Veterans of Foreign Wars scholarships
My Career Advancement Account

Financial Planning and Budgeting Tips

Budgeting for MBA tuition can be easier with these financial planning tips.

Create a general budget for your entire MBA journey. Consider direct and indirect costs as well as estimated financial aid.
Make a weekly and monthly budget, too. Identify your sources of income. Factor in your fixed and variable expenses.
Buy used books or rent books. Use the library and its resources. Ask about OERs.

Most important, think of your MBA degree as a long-term investment. With it, your career advancement opportunities increase. Higher salaries are on the horizon, too.

Conclusion

Professionals who earn an MBA have advanced knowledge of business fundamentals, including leadership, critical thinking, analysis, and communication. The core curricula in MBA schools run the gamut, many of which emphasize Accounting, Finance, Marketing, and Economics.

Excellent MBA programs require a considerable investment from students, but there are ways to make it less expensive! Start by looking at affordable, accelerated MBA programs. This way, you won’t be as pressured about finding ways to finance your business education. Even then, you must explore every financial aid opportunity.

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