Financing Your MBA: Other Options

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So, aside from scholarships, how else can you pay for the MBA without asking for a dole-out from your parents?


Well, of course, you have got to have a lot of personal savings. I cannot stress this enough. Save as much as you can. Live like a student and save as much as you can. Think of ways to grow your savings (consult a financial planner about this!). In my case, I turned to the stock market, which has its own risks.


There's this article on BusinessWeek that suggests working while studying for the MBA: search for work or make work for yourself. You might not receive as much as the income you're giving up but at least it could give you something to live on while studying. International students are usually restricted to working within campus so don't think of working part-time in a corporate setting (besides, you need a work visa for that). Also, you have to think of whether you can still work part-time with your studies, social events, extra-curriculars and career-related activities to juggle. Internship, of course, is a different matter -- it could be a source of income!

The financial adviser at PAEF warned me over and over against relying on private student loans to finance my studies (and in doing so, curbed my desire to apply only at ultra-elite schools). Private student loans in the US (especially for those with no US co-signer) have high interest rates and may take you years to pay back. This is why it's important for you to know the ROI of your intended MBA program. BusinessWeek has a great table on this, but it's the 2010 version. I think one should try loaning from friends/relatives first before resorting to a private lender. I believe that a private student loan should be a last resort.

Anyway, here are some links I've found on international student loans (disclaimer: I haven't tried applying for a student loan yet):

• The International Education Financial Aid Website - http://www.iefa.org/
  The International Education Financial Aid Website provides college scholarship and loan information for international students wishing to study abroad There are many scholarships available on this website. 
• International Student Loans
• Graduate School Loans
• Erika Loan

 In India, there are institutions offering loans to students who want to pursue graduate studies abroad. I'm not sure if there are any such institutions in the Philippines; the nearest I've found were the local banks offering personal loans.