But for many students, getting their MBA degree can be quite expensive, so you might find yourself asking: where does the money come from? For most programs, it’s typically from various sources, ranging from scholarships to endowments, but the amount you’ll pay for your education can vary greatly depending on the school, your field of study and the program itself.
The majority of MBA funding comes from either a tuition bill, which can range anywhere from thousands to tens of thousands of dollars a year, to an investment from a foundation or university, which may only have a budget set aside for this purpose. But sometimes, the funding you receive is from your school itself – or in some cases, it’s from some private funding sources, like an alumni association or some other private organization. Even with these, it’s important to realize that they don’t all necessarily come from the same place.
In fact, most of the time, private institutions, such as the one at the University of Phoenix, offer the most support when it comes to funding MBA degrees. Private universities often have an additional investment by way of endowments, which can provide financial help for your educational needs, but it’s usually for a long-term basis and not necessarily guaranteed for an entire program’s duration.
The only major exceptions to this rule include some private schools, like Kaplan University – Private. These schools are the only ones in the United States that allow private funding for online degrees, and in some cases, a portion of the financial aid you receive is applied towards tuition – or at least part of your tuition – depending on the particular program.
Because of this, many students will find that their only option when it comes to MBA funding is to take out a loan with a private lender. However, when choosing a lender, you’ll need to make sure to choose wisely: While many lenders will be more than happy to extend loans for students with good credit, there are also several that will not.
And in addition, since this is a form of debt, and thus, is based entirely upon your credit history, you want to pay off the debt as quickly as possible. Since this form of financing is usually for a longer period of time than most loans, you’ll likely end up paying interest for that term. And since interest rates are usually extremely high at this point, you’ll want to make sure that you’re able to make the payments at an interest rate that you can easily afford, but that is also affordable enough to be affordable in order to meet your short-term financial obligations.
Getting an MBA degree isn’t always cheap – just ask any of your friends and family. But if you follow the advice in this article, you’ll likely save a lot of money over the long term.
In order to get the best deal when it comes to financing an MBA degree through a private lender, you’ll want to look around and see what types of offers are available to you. You’ll likely have to contact several private lenders in order to find the one that offers the best loan terms for you, so make sure to do some comparison shopping.
Online lending companies are one of the best places to start. Online companies offer better deals, because they don’t have the costs of overhead to consider. Online lending companies are also willing to lower the interest rates that you pay – sometimes even if you’re not a high-income person.
Online lenders should also be a part of your search. These are the companies you want to check out because they are the ones that are more likely to offer you the best online MBA financing options.