No one would dispute that the MBA is a costly challenge. The good news is that there are plenty of possibilities when it comes to funding the total bill: personal savings, parental support, bank loans, special funds, corporate sponsorships and, of course, scholarships. The opportunities are there and you should just find and grab the best one for you.
Financial matters remain among the most important topics on the mind of MBA applicants. According to the GMAC 2026 Prospective Students Survey, most full-time MBA applicants worldwide plan to fund their studies through either grants and scholarships or through loans. When it comes to personal savings and earnings, 20% of candidates count them as their funding source. Employer sponsorship, while less common than it once was, still plays a role, particularly for Executive MBA candidates.
Master’s applicants who are typically younger – mainly Millennials and Gen Z – tend to rely more on parental support, while more experienced managers are likelier to draw on other sources.
Also read: What to Do if You Cannot Afford MBA Tuition
How much does an MBA really cost?
If you have made up your mind that the MBA is what you really want, then be ready to face the financial question. Start preparing for it along with your preparation for the whole application process. As there are many things that should be taken into consideration, some would even advise you to start preparations earlier. The whole MBA experience could cost additional tens of thousands beyond tuition in GMAT preparation fees, application fees, equipment, books, and travel fees.
For that reason, as with any investment, a sound plan is very important. How you pay for an MBA depends largely on whether you choose a full-time or a part-time degree. Usually, the part-time MBA costs less than the full-time one. From the other perspective, the full-time MBA degree takes about two years and consumes all of the student’s time. This makes working while studying impossible. Hence, the student could rely on a scholarship or a loan rather than on their own earnings or getting a sponsorship from their employer. In contrast, the part-time degree is longer but it usually eases the financial situation as students generally work during their studies. This makes them more likely to finance the degree with their own funds or to secure corporate sponsorships.
Also read: 3 Reasons to Choose a Full-time MBA Degree
Online and hybrid MBA programmes have also become a mainstream option as some of them can cost much less. In terms of tuition, they may require a fraction of the cost of a full-time, on-campus degree, while still offering flexibility to keep working.
Can you fund an MBA with personal savings?
The less costly funding option for your MBA degree is to have the cash you need in your own pocket. It could be earnings, savings or asking loved ones for their financial support. Having the money will save you the time-consuming visits to banks or other financial institutions or efforts to convince your employer to finance your degree. It will save you the interest rates and any additional agreements you might need to sign with your boss in return for the corporate money they might give you. However, few are lucky to have the needed cash available in their bank accounts. The good news is that there are many other options available on the market.
MBA loans: what are your borrowing options?
Bank loans and other loan programmes offered by various financial institutions have been a traditional source of financing one’s degree. Many banks have special student loans with flexible terms offered particularly to finance different studies. Banks know your credit history and they can best assess your creditworthiness. Beyond traditional lenders, some business schools have developed their own loan programmes in partnership with financial institutions. The Prodigy Finance programme is one of these schemes. Other well-known options include MPOWER Financing, which specialises in loans for international students studying in the US and Canada, and Juno, a group-negotiated loan platform available to US-based applicants.
How to get an MBA scholarship or fellowship
Most business schools have their own MBA scholarship policies in which they set their particular criteria for awarding them. In general, scholarships are extended to exceptionally talented, high-potential candidates. The schools’ criteria range is very wide – merit, experience, nationality, entrepreneurship, gender, etc.
Some schools extend scholarships to a limited number of students (three to ten) while at some schools this number is bigger. At other schools, the number of MBA students receiving scholarships can reach up to 80% of all students. There are fixed-amount scholarships, full scholarships or partial scholarships that cover between 10% and 90% of the tuition fees. Some schools also cover living costs for selected students.
Also read: How to Win the Great Scholarship Competition
Does your employer pay for your MBA?
Some corporate sponsorships are available under special deals between business schools and their corporate sponsors which provide a limited number of scholarships to students. These scholarships are partial and typically cover a portion of tuition – commonly 25% to 50%, though full sponsorship does still exist, particularly in Executive MBA programmes.
Apart from this, many companies have an institutionalised tuition assistance programme in their corporate policies. The employer provides part of the financing while the employee should commit in return. The high cost of tuition along with concerns that employees may leave the company after graduating serve as chief barriers for corporate financial sponsorship. Each company sets its own terms – typically a commitment to stay for a certain period after graduating.
Before seeking tuition reimbursement, it is essential to first review the corporate policy. Three factors are critical when seeking corporate sponsorship.
- First, become thoroughly familiar with the benefits policies as written, particularly with regard to what is explicitly excluded.
- Second, get a good understanding of the degree of flexibility written into the policy to accommodate a variety of programmes and circumstances.
- Third, pay attention to the personalities of the managers whose support you’ll need for approval. You will need at least one manager to be your advocate.
Ultimately, it’s your job to convince your employer that an MBA will benefit both you and the company.
Also read: How to Negotiate a Corporate Sponsorship for Your EMBA
It may be difficult to secure the finances for your MBA degree. However, it is a worthwhile investment that pays back in a short period of time. Don’t allow the financial question to stop you from achieving your dream.
Originally published: 26 April 2016
Updated: 4 November 2026
