Financing your MBA: Scholarships

If you were to talk to an ordinary Filipino and tell him that you were taking your graduate degree in the US, he assumes either of the following:

1. You have a scholarship. A full tuition and board scholarship, with an allowance that you can live on.

Or:

2. You're rich and your family/parents are paying for it. For every single penny.

Sad to say, there are a lot of Filipino MBA students who don't exactly fall into either category, and usually have tuition and living expenses to worry about. If you're planning to take your MBA in the US, be warned: you have a lot of competition for those full scholarships. At most, you will probably get a significant fellowship in tuition fees on account of your being an international student from a developing country. (Read: significant, not full. And that's only for tuition, living expenses not included.) Don't pin all your hopes on getting a free ride.

The two-year MBA program at ultra-elite schools (eg. Harvard, Stanford, Kellogg) has a price tag of Php 8-9 million. That's a lot of money! But ultra-elite schools also typically have a lot of money available for fellowships. And if you land a full scholarship, then good for you! The kind of deal offered by the Eller MBA program, which offers scholarships specifically for Filipinos, is rare in US schools.

In case you're wondering what other options there are in getting a full scholarship, there is only one I can think of: the Fulbright scholarship offered by PAEF(the catch here is that you have to go back to the Philippines once you complete your studies).

There are a few partial scholarships up for grabs that you can search for on the Internet, but I'm betting that you have a lot of competition for those. Which isn't to say, by the way, that you shouldn't apply. I've applied to those myself, and have crossed my fingers.

There are the QS scholarships, for example. I found out about these by attending the QS World MBA Tour here in Manila. Attending the event and answering the online survey afterwards will give you a chance to apply for these scholarships. There are scholarships for specific schools, as well as general scholarships. For the latter, the QS Leadership Scholarship awards $10,000 to the lucky applicant, and the QS Community Scholarships award $2,000 each to five lucky candidates.

Other links you might want to check are:

• http://fastweb.com
• http://finaid.org
• http://scholarships.com
• The American Association of University Women - http://www.aauw.org/fga/fellowships_grants/index.cfm
  The American Association of University Women offers fellowships to female international students studying in the United States. Some fellowships are available for minority women who are U.S. citizens or U.S. permanent residents. International Fellowships are awarded for full-time study or research in the United States to women who are not United States citizens or permanent residents. Both graduate and postgraduate study at accredited institutions is supported.
• 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.

Whenever I come across scholarships specifically for Canadians, Brazilians or even Indonesians, I feel frustrated that there aren't any  -- at least, I haven't come across any -- foundations offering MBA study-abroad scholarships to Filipinos. I know that there are a lot of Filipino MBAs who graduated from foreign schools and built successful careers for themselves here or abroad, but I guess the concept of giving back to fellow countrymen is not so prevalent in our culture. I salute the Asian Institute of Management for offering scholarships, but AIM is in Manila. There are MBA applicants (like me) who want to experience the world outside of Manila. Really -- do all Filipino MBA applicants have the means to study? Are Filipinos so good that they can easily snag full scholarships? I mean, there are MBA applicants who could definitely use some help here...

For more details on how I'm paying for my MBA, visit this link.

For Filipinos: A Rundown of MBA Expenses Before Arriving on Campus

I keep a rundown of the MBA-related expenses I've had so far. If someone were to ask me how much he/she would have to budget for MBA applications to five US schools, I'd give the following estimates:

Php 5,000 = TOEFL and GMAT reviewers (around 3)
       8,000 = TOEFL (with 4 score reports)
          750 = additional TOEFL score report
      11,000 = GMAT (with 5 score reports)
      50,000 = application fees (five US schools, around $230/app.)
 Note: At this time of writing, ultra-elite schools charge as much as $265 for an MBA application. But there are still reputable, highly-ranked US schools out there that charge less than $200.

The total would be Php74,750.00 (dollar exchange rate in the Php43 range).

This total assumes that you don't avail of GMAT reviewer courses from Kaplan, etc, nor receive any exam waiver. It assumes that you are satisfied with the 3 reviewers you've picked. It also assumes that you don't change your mind about schools mid-way during the application process, 'coz if you do, then that entails additional TOEFL and GMAT score reports (Php 750 and Php 1200, respectively). This estimate assumes that you are satisfied with your test scores and wouldn't need any retakes. It also assumes that the schools you've applied to don't require any hardcopy documents from you prior to admission.

Some schools provide waivers, of course, but don't pin your hopes on that. From last I heard (March this year), the PAEF office has no budget yet for opportunity grants. So, you're on your own.


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Once you've been accepted to a school, you would need to pay a confirmation fee to save your seat. You are typically given a month to decide whether or not to pay the fee. High-ranked schools usually charge $1,000 - $2,000 for this. So that's:

  Php 43,000 = confirmation fee for a high-ranked school (dollar exchange rate in the Php43 range)

Running total: Php117,750.00

Applicants usually submit all their school applications in one round (Round 1/Round 2/Round 3) because submitting your applications in different rounds could end up very expensive as you save seats in different schools. Getting offers from all the schools you've applied to is a very nice problem to have, but it's definitely wise to have an idea of what the deciding factor will be in such a case (eg. fellowships, location, etc).

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Filipinos have to apply for an F1 study visa from the US embassy. You need an I-20 form from the school,  and financial documents to prove that you have enough money for the entire course of study. In my case, I had my bank issue bank certificates and asked my financial sponsor to sign a guarantee letter. 

   Php 200 = notary public (for the sponsor guarantee letter)
          200 = bank certificates for 2 accounts
          1,300 = delivery of financial documents to my school via LBC
         

 Running total: Php119,450.00

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Once you receive the I-20 form, you can now apply for the study visa. Before anything else, you have to pay the visa application fee, which you can do once you receive your acceptance letter. (Visa application payments are valid for one year.) As a student, you also have to pay the SEVIS fee (Student and Exchange Visitor Information System managed by the US Department of Homeland Security).

Php 6,880 = visa application fee

        9,000 = SEVIS fee
         

 Running total: Php135,280.00

So far, those are the expenses on my list. I still have to book a flight to my school and pay orientation fees. I hope this gives you an idea (in Philippine pesos) of how much to prepare in case you plan to take your MBA in the US. I hope this didn't make your blood pressure rise in shock. (I paid for all of these on my own, but I prepared years for this.)

Wow, a pretty long post! Any questions? Just email or reply in the comments below.

Financial Docs? Check!

Okay, now I can breathe a little bit easier. I've just sent off my financial docs to my school for the I-20 form. The I-20 form is required for those of us getting an F-1 study visa.

What my packet contained:
1.Proof of financial documentation form from my school
- There's a table in this form that outlines the sources of my tuition and living expenses for the years I'll be studying. Sources as in scholarships, external grants, personal savings, etc. I was so happy to note that the fellowship I got slashes the funds I needed to come up with by half.

2. Bank certificate on my personal savings account
- Ok, I won't pretend here. When I read that I had to provide an official statement from my bank, I thought it meant bank statement. Well, what do you know, it doesn't. An official statement on the bank's stationery translates to a bank certificate, with the bank letterhead and logo. I got mine from BDO, where a bank certificate costs a cool Php 100. For a piece of paper? Yes. It's an official piece of paper, after all. Good thing that copies/reprints of the bank certificate, that are also on bank stationery, are free.
 - Oh -- and for those who want to borrow money to pad their accounts? I advise you to place that money there at least two days before you request for a bank certificate. The bank certificate I got considered my balance from the day before.

3. Bank certificate from my guarantor 
- I have my parents to thank for their amazing network, which contains quite a few potential guarantors. I'm a very lucky, lucky girl indeed to have someone act as my guarantor for a year's worth of expenses. (I'm a 75%-tuition scholar, by the way.) Anyway, schools need this from your parents/sponsor as proof that they have the money to back you up in school.

4. Notarized sponsorship letter
- My school originally said that they needed the sponsor to include the amount of funds he/she was going to make available to me. When I was able to persuade my sponsor to place the amount and the letter was notarized, the school then said that they would accept letters without a specific amount. Why is this such a big deal? Because notarizing that letter would mean that someone else knows that this specific person lives in this specific address and can afford to give this specific amount of money. Who knows what can happen if that piece of paper falls in the wrong hands? I shudder to think of that. I sure pray that nothing bad would happen to my sponsor for helping me. I hope the notary didn't read the letter at all.


I sent the packet off by LBC. According to LBC, it will get to its destination in 3-4 working days. I hope it arrives earlier since it cost me Php 1270. For a measly envelope with four pieces of paper inside.

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I can't stress this enough, but it's really, really, really wise not to depend too much on scholarships or loans. When I told a PAEF adviser that I was considering getting a loan, she almost had a hard attack. Kidding. She was all, "No, No, NO, don't get a loan" that she was practically saying that I shouldn't study in the US if I would rely on loans. Quite a pessimist, but I guess she's met a lot of Filipinos who are too optimistic in terms of school and work prospects in the US. I didn't like her though. But she forced me to think of ways to come up with the money (and scared me off the elite, too-expensive schools in the process).

I think it would have been better if she gave other, more viable options like -- if you lack a (relatively) small amount of money that you think you'd find easy to pay off in the future -- $15K maybe -- you could consider loaning from other people, not lending companies. You could borrow from relatives, friends, classmates or even alumni who are based in the US. As I write this, I know of a school with a lending program funded by alumni, which I think is a genius idea. Of course, this is a good idea if you are a trustworthy, reliable person yourself who wouldn't dream of duping a relative/friend/classmate/schoolmate.

Or, you could probably get a personal or multi-purpose loan in the Philippines (I am relying on the assumption that the interest rates over here are lower) and find a way to send the money to the US. In India, they have a lot of banks and lending companies offering educational loans to graduate students. Here, I can't think of any with attractive terms.

Those are just two crazy ideas I've come up with on my own. It might not work, but it's at least a creative exercise. It's hard to rely on someone offering you free money out of the blue. Maybe you'll come up with another idea. If you do, please share in the comments below.

OG Result: Boo!

I got the result on my Opportunity Grant application. I had an inkling that I wasn't going to to get approved for it the moment I saw the email in my inbox, and I was right. Fortunately, I can still make another shot -- but maybe I'll make it when I'm in the middle of the app process.

I'm due to take the TOEFL in the last Saturday of March, and the GMAT in June. I was so glad that MIS.Net released their June schedule; I don't think I could study enough by May given my unpredictable work schedule. In fact, I was already considering to take the exam in Cebu instead. For future test-takers, I do think it helps to check the test schedules again and again, just in case future dates open up. It's helpful to schedule an exam at least two months before to secure a slot. I don't think the demand is that high for Filipino test-takers though. GMAT exams are only scheduled Mondays-Fridays, so those who have jobs definitely need to take a leave.

I am currently in the middle of a panic attack with regards to my school choices -- there's just so many to choose from that my shortlist is getting longer! I have revised my school criteria and came up with something more specific. Hopefully, this time, I can come up with a better shortlist. Besides, there's nothing wrong with applying on Round 2 if everything goes wrong with Round 1.

Opportunity Grants at PAEF

March 2014 update: PAEF might not be offering these anymore. To know for sure, better call them at 63-2-812-0945.


For wannabe MBA students like me who want to study in the US, the PAEF office is definitely a must-visit.

PAEF stands for the Philippine-American Educational Foundation. It "is the premier organization in the Philippines dedicated to advancing international education and exchange between the United States of America and the Philippines." Its EducationUSA Advising Center is a good source of information for Filipinos who want to study in the US. It's through the PAEF that one can apply for Fulbright scholarships (I bet you've heard of that!), Hubert Humphrey fellowships and opportunity grants.

Learn more about PAEF's opportunity grants here. In a nutshell, these grants can help pay for testing fees, application fees to US schools, student visa fees and even transportation to the US. I learned about opportunity grants one lucky day that I was scouring the Internet for possible scholarships.

Before submitting your application, you have to set an appointment with the EducationUSA adviser. You also have to prepare an official copy of your transcript, as well as the filled-in opportunity grant form. According to the good people of PAEF, results are out in a month.

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I just submitted my opportunity grant application today, and am crossing my fingers for any good news. Hope it goes through!

I got some helpful tips from my adviser:

1.  Take TOEFL first to get it out of the way. Having a successful exam result could provide some motivation for the tough GMAT.
2.  For any difficulty in GMAT review, ask help from my old teachers.
3.  Prepare my Statement of Purpose then set it aside for review by friends or colleagues, preferably someone from a different field/industry.

It's kinda scary to be taking the first step towards something as big an investment as an MBA, and a US MBA at that. I feel like taking a deep breath and not letting it go for a month until the result is out. Ah, the price we pay for education.
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For more information on PAEF and EducationUSA, you can check out their website.