An MBA can lead to better job opportunities and higher graduate salaries. It can also give you a deeper understanding of business, open doors to leadership roles, help you develop strategic thinking skills and expand your professional network. However, one common concern many prospective students face is how to finance their MBA course.
If you’re considering applying for an MBA, funding it can feel daunting, but don’t worry – if you’re wondering how to pay for an MBA, there are multiple options out there. From government loans to scholarships and employer contributions, paying for an MBA doesn’t need to break the bank.
Planning ahead is invaluable, and this article will help you evaluate a range of options to find the best one for you.
How much do MBAs cost?
The cost of an MBA can vary widely based on several factors, such as the university’s perceived prestige, the number of units in the program and whether the course is delivered online or on campus. Generally, universities considered more prestigious tend to charge higher tuition fees and programs with more units or specialised courses can be more expensive.
It’s important to note that most universities increase their MBA fees each year, so if you’re looking at choosing an MBA but are deterred by the cost, it might be a good idea not to delay your decision. The longer you wait, the more expensive it might become. For those looking for more affordable options, consider researching the cheapest MBAs in Australia. An expensive MBA doesn’t necessarily equal a better one or lead to more opportunities post-graduation, so it’s important to always research and consider the best option for your circumstances.
For a detailed look at MBA costs and to help you plan your budget, check out our article detailing online MBA costs in Australia. This resource will give you a comprehensive understanding of what to expect financially and help you make an informed decision.
How to pay for an MBA
Financing an MBA doesn’t have to be overwhelming. Here are some common and effective ways to make paying for an MBA more manageable, along with some helpful insights from Daniel de Vries, a Master of Business Administration graduate.
FEE-HELP
The Australian Government’s FEE-HELP loan scheme allows eligible students to defer tuition fees. This means you can focus on your studies without worrying about immediate financial pressure. The loan is repaid through the tax system once your income reaches a certain threshold.
Daniel shares, “I used FEE-HELP to defer the costs of my tuition once my employer support had ended. It ended up being extremely easy and convenient, and I hardly even think about it now. I see the debt sitting on my HELP loan account when I do my taxes, but it’s not causing me any real anxiety; it’ll just get paid off as it does.”
Commonwealth Supported Places (CSP)
Some universities offer Commonwealth Supported Places (CSP) for their MBA programs. With CSP, the government subsidises a portion of your tuition fees, significantly reducing the overall cost. These spots can be limited, and there are generally eligibility criteria you must meet. So it’s essential to check with your university of choice for what they offer and apply early.
Scholarships
Many institutions offer scholarships to MBA students based on merit, need, or specific criteria like leadership potential or industry experience. Scholarships can cover part or all of your tuition fees and sometimes even provide a stipend for living expenses. Each university offers different scholarships and application methods, so it’s important to research early to give yourself plenty of time to apply.
Successful in securing a half scholarship at his university of choice, Daniel shares: “In the end, winning the scholarship was the clincher in both where I chose to study and when I chose to start. The scholarship has helped me immensely.”
Employer contributions
Certain companies may pay for an MBA and are willing to invest in their employees by covering tuition fees or providing financial assistance. If you’re currently employed, check with your employer to see if they offer education benefits or sponsorship programs for higher education study. Highlighting the benefits of your advanced education to your employer can help secure this support.
“I approached my workplace and asked if they’d be willing to sponsor half of my tuition and they were willing to,” says Daniel. “However, my advice to others is to check out the ‘return of service’ obligations that come with their investment. Most companies will expect you to remain at the company for a period of time after completing your studies, or you have to pay back some or all of the fees.”
Personal savings and loans
While less appealing than other options, personal savings or taking out a private loan are other ways to fund your MBA. If you choose this route, make sure you understand the loan terms and have a solid repayment plan.
“I’m happy that I decided to do the MBA when I did,” says Daniel. “Overall, the mixture of the scholarship and the convenience of the FEE-HELP system made it easier for me to begin without being overly anxious about the ongoing debt and long-term expenses. I’m confident it will set me up for significant long-term success.”
How Recognition of Prior Learning (RPL) can reduce the cost of your MBA
Recognition of Prior Learning (RPL) is a valuable way to decrease the cost and duration of your MBA. RPL allows you to receive credit for relevant work experience or previous studies, potentially exempting you from certain units or courses within the MBA program you embark on. This means you could complete your MBA faster and pay less in tuition fees.
Many prospective students are unaware of RPL, and it’s often up to them to inform the university about their relevant experience or qualifications. You could be eligible for RPL if you have significant work experience or previous education that relates to your MBA studies.
Explore your MBA funding options today
Paying for your MBA doesn’t have to be overwhelming. You can find plenty of ways to finance your higher education, which brings you a step closer to obtaining this qualification. If you haven't decided on an MBA provider, you can go through a wide range of MBA courses here to get started.