Finance options for MBA Educational Loans.

Studying MBA can be a costly affair for which financial help students may need to take. A proper planning and allocation of funds is necessary while applying to MBA colleges. According to a survey, the top 10 global MBA programs have tuition fees at an average of $ 102,000 which is quite an amount for a student to afford. However not all MBA colleges offer so expensive degree programs, but the overall study costs is extended by accommodation, living costs and array of fees right from GMAT application to getting graduated. Here you need to also calculate the loss of earnings that the student has to sacrifice while studying for MBA.

To fund your MBA study, students can consider many funding options that are available. They can choose from options like education loans, scholarships for Indian students or alternative subsidizations. These options have to thought and worked upon beforehand, as it can be time consuming process.

The fees can vary from college to college for the MBA degree program, it can be somewhere between US$50,000-US$60,000 per annum. Although procuring MBA degree from a reputed B-school can ensure a brighter career with high salary package during campus recruitment, thus students can easily pay off their educational loan. But it's highly important to know about the options available to cover these costs. Choose the right funding option to support your MBA study plan. If the MBA aspirant is lucky enough, they can get scholarship or fellowship from the selected B-school, thus saves great amount of money.

Some popular ways to arrange funds for MBA are as follows:

1. Educational Loan:

Many well-known banks in India and all over the world offer educational loans to students for higher studies. The amount of loan you would get depends upon the MBA program that you apply to which can go up to US$16,000.

Banks do offer educational loan, but they do not offer the entire amount of fees. Hence the candidates have to rely for the rest from family members and savings. The Indian education loans are given to selected students who abide by their set terms and conditions. The borrower needs to provide the bank security for the loan they take.

Scholarship/Fellowship:

Financial help for students in US is much higher than Europe, MBA Colleges prefer to give admission on merit basis. They also offer scholarships or fellowships to the deserving students. Several B-schools of US features scholarship that can be applied for by the admitted students through their websites.

2. Sponsorship from Employer:

There are corporate companies who contribute financially for their employees' MBA. Some offer partial or total sponsorship to their employees.

The latest in funding for MBA loans is ‘Crowdfunding', here the students borrow the fees from people/institution interested in supporting their degree as a part of an investment.