Dealing with MBA tuition costs and all the additional expenses that come with attending business school is an essential task on the action plan of every aspiring manager. If you’re worried that an MBA programme exceeds your budget, do not give up before exhausting all possible alternatives to get over any financial roadblock.
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How to save for an MBA
One of the first steps to take after deciding to do an MBA is to create a thorough plan of estimated expenses of enrolling in business school with the funds you have available. Take into account everything that could be a factor in increasing your expenses.
- Did you choose a local business school or one abroad?
- What is the standard of living in that country?
- If you have opted for a part-time MBA, will you keep your job during your studies?
Applicants should consider all the long-term expenses of attending business school, living abroad, and travelling for both personal and professional commitments.
Whether you are starting your MBA in a few months or longer, it is important to have access to your savings. Make sure you set aside a percentage of your earnings specifically towards funding your MBA. According to Caroline Diarte Edwards, Co-Founder of MBA admissions coaching firm Fortuna Admissions and former Director of MBA Admissions at INSEAD (France), it is never too early to start saving up. Even if you are still getting ready to apply for the programmes on your shortlist, make sure you have a realistic budget plan for the entirety of your studies.
“You also want to be in a position to make the most of the opportunities you have during business school, such as study trips and career treks as well as travel to interviews,” adds Ms Diarte Edwards.
Find and apply for MBA scholarships
Next, ambitious applicants should research available scholarship opportunities offered by schools and by external sources. It’s important not to underestimate the scholarship application process and come up with an appropriate and timely strategy.
For one thing, it is best to apply for the scholarships which make the most sense in terms of your profile and background rather than sending as many applications as possible. At the same time, don’t limit your chances – if there is a funding opportunity that can fit in your schedule, go for it!
“MBA scholarships funding can help you afford business schools that initially looked way beyond your reach financially, if you factored in just your savings and loans options,” highlights Iliana Bobova, Head of Admissions Consulting at Advent Group. “Scholarship application requires in-depth research, good planning, often high GMAT scores and early application, but all the effort is well worth it.”
Also read: How to Secure an MBA Scholarship: Types, Tips & Examples
Corporate sponsorship for MBA programmes
Employment sponsorship is a viable funding option for professionals working in financially stable organisations. Most commonly provided to Executive MBA candidates, the sponsorship can cover business school expenses partially or fully, as long as the employer is convinced that the investment in your development as a manager and business leader will make a difference to the company.
Usually, you will need to sign a contract with your employer stating that you will go on working in that organisation for a specified period after obtaining your diploma.
In other words, whether this is the right funding option for you depends on your career goals and plans for the future. If you are looking for a major shift in your professional role or industry, securing corporate sponsorship will obviously not work.
However, if you feel inspired in your current workplace and believe you can grow within its internal structure, you have every reason to explore this funding possibility together with your manager.
Ask yourself if this is the right time
This suggestion may seem redundant at first but it is worth giving it some thought before diving into an MBA. If your salary and savings are not sufficient to cover at least a part of your studies, then perhaps it is worth considering business school enrolment in two or three years.
- Are you at the start of your career and still need to accumulate not only more experience but also more savings to be eligible for an MBA?
- Or are you at the right age and your career and savings plan will enable you to acquire exactly the amount of funds you need in several years’ time?
Of course, this is an important decision and professionals need to be sure that they are neither missing out, not rushing into the decision. As Hugo Arévalo Álvarez-Arenas, Co-Founder of online business school thePower Education, says for the Financial Times:
“The reality is that few individuals can afford to halt their professional and personal lives for two years to pursue education, not only from a financial standpoint but also considering career momentum, opportunity costs, and familial responsibilities.”
Everyone has their reasons but the bottom line is that any doubts you have about your eligibility for the degree may influence the success of your application. Choose to start your MBA when you are actually ready for it.
Also read: MBA Application Deadlines 2026-2027: Your Complete Global Guide
Local and online MBAs as a more affordable path
Nowadays, business professionals are lucky to be able to choose from an incredible range of educational formats. Even better, some of these formats can be very affordable compared to their counterparts while still offering excellent value for money.
The Global MBA programme at IE Business School (Spain), available in hybrid or fully online formats, is priced at EUR 65,000 for the entirety of its 16-18-month duration. This programme has been ranked #1 in the world by the Financial Times Online MBA ranking for four years in a row.
In contrast, the full-time programme taught in Madrid at the same institution requires an investment of EUR 89,900. While the difference in tuition is not always startling, professionals can rely on an increasing variety of online MBA opportunities.
“[Students] are taking their education into their own hands,” Prof Amy Kristof-Brown, Dean at the University of Iowa Tippie College of Business (US), told the Financial Times. “They don’t want to quit their job but continue working while studying. We’ve certainly seen demand for programmes that are more flexible.”
Also read: 10 Unusual MBA Specialisations
If you would like to benefit from face-to-face interaction and still trim your MBA expenses, consider a local business school. It can be as culturally diverse and globally immersive as a school abroad. Thus, you will save up on additional lodging and travel expenses, which can be a considerable part of the overall MBA bill. Also, living expenses and travel are usually not covered by scholarships.
The MBA can be a significant financial investment but it is also one of the most exciting challenges that any business professional could undertake. Consider your funding options carefully and you will gain more from this opportunity than you have to give.
Originally published: 14 March 2019
Updated: 17 July 2026
