Funding Your Foreign Degree

 

Technically, “foreign” means any place other than your home country. But, obviously, when we say a “foreign MBA degree”, we would not be talking about an MBA degree obtained from any random country other than India! Let’s look at the funding scenario in the destinations that are most popular among Indian MBA aspirants.

USA

In terms of financial aid and scholarships, US universities continue to be generous. These funding opportunities fall under various categories.

Merit based scholarships: Most B schools offer merit based scholarships. These scholarships can be in the form of monetary awards or tuition waivers. For instance, in Columbia Business School, the average scholarship given to MBA students ranges from $4k to $10k per student. In Vanderbilt-Owen, the scholarship amount ranges from $5k to 100% tuition waiver. Some of these scholarships can be given out alongwith the admission offer. These scholarships, if given alongwith the admission offer, are given to the 5-10% of the admitted students. So, if an applicant is willing to compromise on the quality and ranking of the college, then he stands higher chances of winning these scholarships and tuition waivers. However, even if a student is not able to get tuition waivers or scholarships in the first semester, then based on his performance during his MBA, he can become eligible of various scholarships and tuition waivers in most US B schools.

 Diversity Scholarships: In addition to merit based scholarships and tuition waivers, some US B schools such as Carnegie Mellon – Tepper, Vanderbilt-Owen, etc. have Diversity scholarships which are awarded to international students, women applicants, etc. Since B schools take pride in the diversity of their class composition, the objective of these diversity scholarships is to encourage students from minority and unique groups to pursue MBA in the B school.

Named Scholarships or Private Endowments: In almost all of the top US B schools, there are scholarships offered in the names of successful alumni or other people which are paid through trusts run by the relatives of these people. Very often, these scholarships require separate application and interview process. For instance, the Reliance Dhirubhai India Education Fund offer full fellowship to promising Indian students with financial need enabling them to pursue an MBA at Stanford.

Loans: Quite a few US B schools offer loan programs to International students. These loans are given usually for 100% of the cost of the MBA program and, cover both the tuition and living expenses. These loans are offered at much lower rates of interests as compared to the Indian banks. Some B schools such as Kelley, Columbia Business School, Michigan State – Broad, etc. offer loans to International students and require a credit worthy US citizen or permanent resident as a cosigner. Also, a few B schools such as Rochester Simon, Yale, Wharton, Darden, Duke, etc. offer loans to International students and do not require any cosigner.

Paid Internships:  Almost all US MBA programs have mandatory internships as integral parts of their MBA curriculums. This is a paid internship and students can earn $3k-$7k per month during the internship. Very often, this helps students pay for some portions of their MBA tuition.

Part-time employment: On an international student visa, one can work on-campus in US universities for a maximum of 20 hours. The cost of living can be taken care of through this. However, students use this as the absolute last resort. In most US MBA programs, students have an extremely hectic schedule, and taking out time for part-time employment is something that most students try to avoid.

Europe

Most European MBAs are 12-15 month MBA programs, and do not have as many funding options as the US MBA programs

 Merit based scholarships: Though not abundant, some European B schools such as HEC Paris, Manchester Business School, etc. offer merit based scholarships. These scholarships can be in the form of monetary awards or tuition waivers. Some of these scholarships can be given out alongwith the admission offer. These scholarships, if given alongwith the admission offer, are given to the 5- 10% of the admitted students. So, if an applicant is willing to compromise on the quality and ranking of the college, then he stands higher chances of winning these scholarships and tuition waivers.

 External Scholarships: In a lot of the B schools, there are scholarships offered by external agencies.Very often, these scholarships require separate application and interview process. For instance, information related to all external scholarship programs available for MBA programs in UK can be collected from British Council.

Loans: Quite a few European B schools offer loan programs to International students. These loans are given usually for 100% of the cost of the MBA program and, cover both the tuition and living expenses. These loans are offered at much lower rates of interests as compared to the Indian banks. Some B schools such as INSEAD, LBS, etc. offer loans to International students and require a credit worthy citizen or permanent resident as a cosigner.

 Paid Internships: Some of the European B schools have an internship as a part of their curriculum. This is a paid internship and helps students pay for some portions of their MBA tuition.

Part-time employment: The best part about an European MBA is that on an international student visa, one can work off-campus. The cost of living can be easily taken care of through this.

Singapore and Hong Kong

In terms of cost, the Asian B schools are the most affordable. In fact, one of the reasons behind the      recent surging popularity of Asian B schools such as National University of Singapore, HKUST, Nanyang, ISB, etc. is that these B schools come across as a great combination of world-class education and affordable tuition. The cost of an MBA ranges from INR 15lakhs to INR 35 lakhs only. Moreover, these schools give generous scholarships and tuition waivers that bring down the cost further.

Well, the bottom line is that an MBA is an investment. An MBA today will help you reach greater heights tomorrow. If you have made up your mind to an MBA and if you are willing to work on your profile and application, then you will find that there are enough ways to fund your MBA. And, in the worst case scenario, you can take loans from Indian banks, where the rates of interest vary from 12% to 15% and a maximum of INR 25-30 lakhs is available as loan to cover 80-90% of the expenses upon presenting 100-150% collateral.

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  • aarya

    really not at all helpful and nothing new

     
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