15 ways to find money to pay for an MBA

An MBA can open the door to new career opportunities and increase your earning potential. However, with an average cost of $56,850, it’s one of the most expensive master’s degrees available. Fortunately, there are plenty of options for financing an MBA, so MBA students can reap the rewards even if they can’t afford to pay for an MBA program out of pocket.¹

This article will explore 15 different methods on how to get your MBA paid for, covering a variety of funding sources such as scholarships, grants, loans, and employer sponsorships to help make your MBA more affordable and accessible.

Scholarships don’t have to be repaid, so they’re one of the best options for MBA funding. Many organizations offer scholarships. Some are specific to MBA programs, while others can be used for any major. Cast a wide net and apply for as many as you qualify for. Although you can find scholarships that cover the entire cost of tuition, most are for smaller amounts. Start by looking into the scholarships offered by the school you plan to attend.²

Like scholarships, grants don’t need to be repaid. However, they’re more often based on demonstrated financial need. There is some overlap, though. Some programs, such as the Fulbright U.S. Student Program, provide grants based on merit. Government and civic organizations are good places to look for grants.³

If you plan to continue working for your current employer after you get your MBA, you can look into employer sponsorship. Many businesses offer tuition funding or tuition reimbursement to help develop their workforce and keep their talented employees happy. Ask your HR department if your company provides employer sponsorships for MBA tuition.⁴

Although student loans need to be repaid, they can be a good option for paying for an MBA program. If you take out loans, you’ll have more time to focus on studying than if you have to work while you’re in school. You can obtain federal loans or private loans at various interest rates and payment terms.⁵ Here’s a deeper look at how MBA student loans can help you cover graduate school costs.

The U.S. Department of Education offers several types of federal loans that can be used to pay for an MBA. These loans often come with lower interest rates and more flexible repayment options than private student loans.

Types of federal loans for MBA students:

• Direct Unsubsidized Loans: Available to grad students regardless of financial need. You can borrow up to $20,500 per year with this loan.⁶
• Direct PLUS Loans: Also known as Grad PLUS Loans, these cover any remaining graduate school costs not covered by other forms of financial aid. However, they require a credit check and may have higher interest rates than Direct Unsubsidized Loans.

Applying for federal student aid starts with completing the FAFSA (Free Application for Federal Student Aid), which determines your eligibility for these loans and other forms of financial aid. The financial aid process for graduate students is straightforward and helps you access the necessary funds to pay for an MBA.

If you need additional funding beyond federal loans, private student loans can help with paying for an MBA. These loans are offered by banks, credit unions, and other private lenders. The interest rates and terms vary widely, often based on your credit score and income.

Key features of private loans:

• Higher or variable interest rates compared to federal loans
• No federal protections like income-driven repayment plans
• Customizable financial aid packages depending on the lender
• Potential to borrow higher amounts based on your creditworthiness

Before choosing a private loan, carefully compare lenders to find the most favorable interest rates and repayment terms.

Whether you choose federal or private loans, it’s important to plan ahead for student loan debt. MBA graduates can benefit from higher earning potential, which can make repaying student loans more manageable. However, consider the following strategies to keep your debt in check:

• Use personal savings to reduce the amount you need to borrow
• Explore private scholarships or financial aid packages that don’t require repayment
• Only borrow what you need to cover your graduate school costs

Balancing student loan debt with your future salary potential will help ensure you’re making a smart financial decision as you invest in your MBA education.

A fellowship is another way to pay for an MBA that doesn’t need to be repaid. Corporations, donors, and charitable foundations offer fellowships, which often include access to other learning opportunities, such as mentoring and networking. MBA Fellowships are typically offered through schools, so you can reach out to the financial aid office at your university for information.⁷

An MBA assistantship can help you pay for your graduate degree while you get valuable work experience. MBA assistants work with faculty members, doing administrative or research tasks. Schools usually award assistantships to full-time students based on merit. Your salary will depend on how many hours you work and the school and department you work for.⁸

Work-study programs are also available for MBA students. The amount you can earn will depend on your award. You’ll earn at least minimum wage, although you may earn more, depending on your skills and position. Work-study jobs can be on- or off-campus because some universities partner with private businesses for work-study opportunities.⁹

If you have money set aside in a savings or 529 account, you can use that to pay for graduate school without incurring a penalty. Some people set aside funds specifically for their graduate studies, but leftover savings from your undergraduate studies can roll over to pay for an MBA program as well. You can also withdraw money from an individual retirement account (IRA) to pay for qualified educational expenses penalty-free.⁸

Working part-time is a time-honored way to pay for school. Attending a part-time MBA program can make the workload more manageable and may help you spread out the payments over a longer period of time.

Crowdfunding platforms provide access to a large pool of potential donors. Websites such as Student Funder and All Tuition are specifically dedicated to education expenses. Creating a compelling pitch can help you raise money. Make sure to thoroughly vet the website to avoid falling for a scam.¹⁰

Students who served in the military may be able to use the Forever GI Bill to pay for an MBA. Veterans who served for at least three years can qualify for up to three years of college credit, which can be used for an MBA program.¹¹

Every year, different organizations host business competitions and award the winners significant prizes. In addition to providing money to pay for an MBA, many of these are prestigious honors as well. Some competitions are hosted by specific business schools, such as the Rice Business Plan Competition, while others are for specific sectors, such as the Climate Investment Challenge.¹²

Some companies offer employer-forgivable loans as a recruitment tool. If you meet the requirements, which can be staying with the company for a certain length of time or meeting specific performance objectives, the loan will be forgiven. Otherwise, the principal balance has to be repaid. However, be aware that if the loan is forgiven, the amount qualifies as income for tax purposes.¹³

Tapping into your undergraduate alumni network can be a valuable way to secure free money to help finance your MBA. An alumni network, particularly from a top school, often offers resources, including MBA scholarships or grants, that current students can use to fund their MBA studies. If you’re pursuing an Executive MBA program or traditional MBA studies, here’s how your alumni connections could assist you.

Many alumni associations offer graduate school scholarships tailored to those pursuing business administration or an Executive MBA program. These scholarships can be awarded based on academic merit, demonstrated leadership, or financial need. If you're attending the same university for your MBA as your undergraduate degree, you may have additional opportunities to secure need-based aid or even alumni-specific funding.

Alumni network funding options:

• Scholarships based on financial need
• Awards for demonstrated leadership in extracurricular activities
• Employer sponsorship information from alumni working in the private sector

Beyond free money, your alumni network can provide invaluable career guidance, especially for those in Executive MBA programs who are advancing along their career path. Alumni working in diverse industries such as veterans affairs, higher education, and the private sector can offer mentorship and connect you with job opportunities, especially if you’re seeking to pivot into a new industry.

For current students or those with military backgrounds, alumni networks can also offer connections with veterans through veterans affairs programs. Some schools have alumni chapters specifically for veterans, which provide financial aid, employer sponsorship, and career resources targeted to transitioning into business administration or other related fields.

If you are considering an Executive MBA program, alumni networks can be an essential resource. Alumni of executive MBA programs often hold senior positions and can provide mentorship, funding advice, and connections to higher education opportunities within your field.

Key alumni network resources for Executive MBA students:

• MBA scholarships for executive MBA programs
• Networking events and mentorship programs
• Guidance on balancing work with MBA studies and career advancement

Check with any professional associations you belong to see if they offer grants or scholarships for an MBA. Groups such as the Association of Insurance Compliance Professionals and the Government Finance Officers Association offer scholarships that can be used for graduate studies.¹⁴

KU’s online MBA program is ranked No. 9 in the U.S. and its alumni lead companies all over the world, from disruptive startups to established Fortune 100 companies.¹⁵ Led by experts in their fields, the program's rigorous curriculum will help you develop the skills and knowledge you need to thrive in today’s complex, global business environment and gain the skills you need to enhance your career path.

Contact one of our admissions outreach advisors today to apply.