Simple yet efficient financial tips for MBA
Range of MBA programmes
Making financial planning for your degree even more critical MBA costs are on the rise. The tuition rates for one-year MBA degrees in the UK regularly exceed £10,000, with top programs like London Business School costing up to £78,500 for tuition alone. Top two-year programs in the US can be even higher, some surpassing the $100,000 mark. When Gabriela Rodrigues was accepted to the MBA program at ESMT in Berlin, she knew she would have to get a bit creative with funding her education. To pay for her first instalment confirming her enrollment, Rodrigues, who is from São Paulo, started looking at her options with banks in Brazil. But her choices were far too expensive.
Advancing loan facilities for MBA
It gets fairly complicated for international students. These cost challenges can be even higher depending on the banking situation in their home country, as well as currency concerns.
“ The options are even limited when it comes to developing nations, options are even more limited,” says Ricardo Fernandez, Chief Marketing and Sales Officer at Prodigy Finance, a provider of student loans to MBA students and other postgrads. “Over the past 10 years, India is the only country that has established a student loan industry and there are several banks and new financial companies that lend to students studying in-country and outside, but amounts are limited. Other developing countries have very few options for students studying abroad, which is historically why they have focused on savings or scholarships.”
Majority of the international students transform to Prodigy, which originally launched as a peer-to-peer funding program for INSEAD students but now works with a roster of 85 schools. There was no alternative source of educational funding for 83 percent of Prodigy-funded students (approximately)
Currency fluctuation was a significant factor, for Rodriguez in her decision to take a Prodigy loan to finance her MBA.
“I was really concerned about the exchange rates,” she says. “Therefore I had to come to a conclusion that I had to take out a loan on the euro with Prodigy; I figured I’d be here after graduation. In Brazil, I’d have to pay there, and that would be much messier. Plus the rates with Prodigy were really good—and I could pay six months after graduation.”
In fact, there are numerous ways to providing funds to an MBA program, and at times it can seem overwhelming, particularly after counting in other ballooning expenses like living costs. But experts say that there are more options than students may think.
“The biggest misconception we see from students that come from emerging economies is that they don’t think they can get financing,” says Prodigy’s Fernandez. “Their current salary or lack of salary doesn’t justify a loan, and that is why companies like Prodigy Finance were created—to look at the future earnings potential of students.”
Yet another misunderstanding is that they can only access small loans for tuition, Fernandez adds—but students can borrow for both tuition and living expenses.