So, you have decided to pursue an MBA program from a prestigious B-School and considered various parameters such as the reputation of the institute, placement opportunities, industry demand for a specific stream, your own strengths and weaknesses, your interests, etc. However, have you considered the costs involved? Will you be able to finance the program yourself or are you considering an educational loan? If your option is the latter, you must bear in mind that among all the hardships that are involved with obtaining that coveted MBA degree, the toughest to overcome is repaying your financial aid. Here are 7 simple tips that can help you pay for the degree in the most effective way possible.
Analyse your overall financial situation.
A thorough understanding of your current financial situation can go a long way to optimally finance your degree. While your credit score (CIBIL) can determine the amount you are eligible for, you must be fully aware of your ability to repay the loan later. Remember that every student comes from varied backgrounds and there’s no one-size-fits-all solution. Do not compare your situation with that of others.
Find employment on a short-term basis.
Finding employment, either full time or part time, is one of the best strategy you can adopt towards financing your MBA program. You not only earn and save money towards your educational expenses but also earn additional brownie points as most B-Schools give certain weightage to your work experience while considering your application. You’ll also come across another advantage later in this article.
Apply for scholarships.
If you are like most of the MBA aspirants, you are probably preparing for it for a long time now. A remarkable academic track record is one of the key parameters. Most B-schools also place a high emphasis on the performance of the entrance tests and interviews. Be sure to give your best and don’t just aim at the so-called cut-off marks. Make a list of all the B-Schools that award good scholarships and understand their criterion for awarding the same. With this, you can be well prepared to play to your strengths.
Seek family support or company assistance.
Your family is your first line of support whenever you need help and seeking their support to finance your higher studies is no different. And the best part about this? You get the aid at zero interest! Also, most companies sponsor their employees’ higher studies so long as they gain from it in the long term. Be sure to check your company’s policy in this regard.
Take a good look at your lifestyle.
Your overall cost of your MBA program can be basically broken down to two categories: Academic and personal. While there can be no compromise on the academic costs, you can minimise your personal costs that involve food, rent, recreation, travelling, etc.
Get a fair idea about the salary you will earn.
This is by far the most important factor that will determine your ability to repay the loan. It is very important to understand the industry demand and the pay scales that are offered to MBAs based on the stream. While disciplines such as Finance command some of the highest remunerations in the industry, there are other streams that offer not-so-good compensation. Another important factor to consider is the overall economic condition at the time of your graduation. Although this can be tough to determine accurately, a general idea will certainly help.
Be sure to get the best deal.
From personal loans to housing finance, every financial institution has its own business model, and an educational loan is no different. Make sure you consider as many options and get as many quotes as possible, so you can make an informed decision. One more factor to consider if you are pursuing your degree in an overseas institution is the currency. Be sure to understand all the implications of fluctuations in the money market to mitigate any possible risks.