Investing in Your Future, and Yourself (Financing Your MBA)

I’ve just returned to the cold New York City winter, after two weeks of hosting INSEAD events in the lovely South American sunshine. I don’t spend as much time as I would like in our neighbouring continent to the South, so I was especially happy to have such a long visit and to cover so much ground – four cities in three countries in just 10 days – wow! As you may already know, our third application round for the class beginning in September 2009 has just passed. That means one more round for the September class, and we look forward to January. (For more information on our dates and deadlines visit our website at: http://www.insead.edu/mba/admissions/dates.cfm). As is common this late in the application cycle, many of the people I met at our recent events had either already applied, or were about to hit the send button. So, I found myself answering fewer questions about our admissions criteria and more on financing options. And on my flight back, it occurred to me that if the people I met in Argentina, and Brazil and Chile had financing on their minds, then probably, so did many of you. So, I’ve decided to devote this entry to Financing your MBA, or perhaps more accurately, to Investing in Your Future, and Yourself….

There is no doubt that having a world-class MBA can change the trajectory of your career, and your life. Doors previously locked will open. Once narrow horizons will broaden. The unlikeliest of friendships will be made. This is why we call your INSEAD MBA an ‘investment’. The returns are vast, and last a lifetime. But, like all investments, an initial outlay must be made.

INSEAD’s fees and living expenses are particularly competitive largely because of our accelerated format. With only one year out of the job market, you forgo less income than on longer programmes and have fewer living expenses to cover while you are not working. In fact, most INSEAD graduates pay back their MBA loans in less than three years.

Still, we know that €51,000 for tuition and €2000 per month we advise you to budget for your living expenses is no small sum. And for many – particularly those from developing countries or who work in the non-profit sector – the prospect of funding the entire amount on their own can seem overwhelming at best, impossible at worst. The good is, we are here to help.

Once admitted, our MBA Financing Office will work with you to plan how you can meet your financing needs. But, because its best to begin your financial planning early, here are some steps you can begin taking now to identify the opportunities which may be available to you:

1: Consider INSEAD Scholarships:

Each year, INSEAD gives nearly €2.5 million in scholarships to our MBA participants. Awards vary in size and criteria, but you can see a comprehensive list of all of them at http://www.insead.edu/mba/schlmgmt/index.cfm?fuseaction=dsp_list_schl. All of our scholarships have an additional application process, and some of them have early deadlines, so it’s best to review the portfolio as soon as possible. Identify the scholarships for which you are eligible and then begin thinking about the essay question. Like admission, competition for each award is tough, so the more prepared you are the better.

2. Research local sources of funding

Many applicants have attractive scholarship and loan opportunities in their resident country or countries. You may be one of them! Often deadlines for local scholarships will be even earlier than those of INSEAD scholarships, so again, the earlier you get started, the better. We have compiled a list of scholarship and loan opportunities known to us, which we have compiled by country (http://www.insead.edu/mba/financing/financing_funding.cfm). Our list is a good place to start, but it is by no means exhaustive. Make sure you research all funding sources that may be available to you – exhaust your options!

3. Save

Depending in where you live, and in which industry you work, saving money can be difficult, and very un-fun. (Trust me – I know). But having your own savings to put towards your MBA is likely to assist you in more ways than one. Not only will you have to take out less money in loans, depending on where you live, you may also find that putting some of your own capital towards your MBA can make it easier for you to obtain a loan, and could assist in securing a lower interest rate.

4. Take a note from those who have already done it

If you’re struggling to understand how you might be able to meet your financial needs, know that you are not the first, and you are not alone. For inspiration (and ideas!) read first hand testimonials from our MBA participants on how they financed their INSEAD MBA at: http://www.insead.edu/mba/admissions/Financingquotations.cfm