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5 ways to finance your MBA
An MBA is an investment that often leads to promotions and an improved salary. According to the 2018 EMBAC Student Exit Survey, MBA graduates see an average 14.6% increase in compensation once they complete their programs, with 39% of students receiving a promotion while they are completing their programs.
While an MBA bodes well for your future earnings, it does require a significant investment upfront. You may be able to self-fund part of your studies, but you may also be interested in discovering other ways to cover the cost. Fortunately, there are plenty of financing options available for those who are interested in pursuing an MBA. Here’s a look at a few that you may be able to take advantage of.
1. Scholarships
We at the WU Executive Academy are going to great lengths to offer financial aid to our students. Thousands of Euros' worth of scholarships are being awarded each year. One of the main reasons for granting MBA scholarships is to attract a more diverse range of participants into MBAs. That’s important because peer learning is the mantra of the MBA.
The scholarships are awarded on a case-by-case basis. Each accepted student can apply for a scholarship and, depending on each candidate’s personal circumstances, we decide if a scholarship will be awarded and what percentage of reduction will be granted.
2. Company Sponsorships
Many companies understand the importance of supporting the ongoing education of their employees, and they often agree to cover a part of, or all, tuition fees. According to the GMAC 2018 Corporate Recruiters Survey, 61% of US companies and 44% of European companies now offer financial assistance to employees pursuing continuing education. Furthermore, 82% of European companies and 66% of US companies have increased their budgets for employee education over the past 5 years.
If you’re considering earning an MBA, consult with your employer to find out what type of sponsorship or assistance they can offer you. Even if your employer doesn’t offer direct financial assistance, they may be able to support you in other ways, such as through paid time off or flexible hours so that you can work and complete your studies at the same time. Others may agree to provide bonuses or promotions upon successful completion of your program.
3. Tax deductions
Many countries offer some form of tax deductions to help offset the cost of an MBA tuition. For instance, if you pay taxes in Austria, you may be eligible to get back up to 50% of tuition and other fees for all programs offered at WU Executive Academy. However, this will depend on your income.
While most other countries have a similar tax arrangement, for US students, the situation is a little different. Employed US students don’t have substantial opportunities to deduct their MBA tuition on their taxes; however, self-employed students and independent contractors can declare a portion of their MBA study costs as a tax deduction.
4. Payment installments
You can also pay for your MBA program at WU Executive Academy in installments. There are 2 big advantages to paying in installments. For one, many students find it easier financially to break up their payments into 2 or 3 installments rather than having to pay the full fee upfront. Additionally, installment payments from WU Executive Academy are interest-free. That, of course, is a big improvement over most government or private student loans which almost always charge interest on top of the principal.
5. Educational loans from private & public lenders
Many students entering an MBA program take out loans to fund their education. Government loans may be available to help fund MBA programs, although this varies widely from country to country. Since many government loans are needs-based, you may not qualify if your income is already above a certain threshold.
Banks and other private lenders may be a better option if your income is too high to be eligible for government loans. Private lenders are often willing to provide loans at competitive interest rates, since they know that MBA students typically enjoy higher salaries after graduation. As a result, a private loan for an MBA program is seen as a low-risk investment for lenders. You will need to speak directly with individual lenders to discuss possible loans they can provide.
We are here to help you find the right financing options for your specific situation and have gathered a lot of insights and tips for funding possibilites. Get in touch with us and start your MBA journey at the WU Executive Academy.