How to finance your course

There are many factors involved in choosing whether to do an MBA - and not least of them is the ability to fund your learning. Here are six key options that you might consider when looking for ways to finance your course.

1. Get your employer to pay
According to research from the Association of MBAs Salary Survey, over 90% of respondents who were employed while studying received some form of employer support. Of course, this support could be as small as allowing you a few extra days' holiday for distance learning or evening MBA students to use as study leave. However, the same survey found that 52% had their fees paid by their employer with a further 23% receiving financial assistance from their employer for part of their fees. Some employers, particularly at the top-flight strategic consultancies such as McKinsey or Boston Consulting Group, actively encourage their high-achieving recruits to enrol on an MBA course after a couple of years on the job. Often the deal is that the firm will sponsor them through the course - at a cost of up to ?100,000 for stellar US business schools like Harvard, Wharton and Stamford - in return for a commitment that their employee will come and work for them for them for a couple of years after they are have graduated. "Employers realise that 'growing their own' MBA graduates is cheaper than hiring in those who have debts," explains one consultant. "And they know what to expect because you've worked for them before."

2. Try for scholarships and bursaries
For UK students, and unlike for undergraduate study, there are no mandatory awards from local educational authorities (LEAs) for MBA study. This is also the case even for those who have not studied for a first degree. However, many individual schools offer awards or bursaries and prospective students should check the institution's website or speak to the admissions department to see if they are eligible. At Cass Business School at City University, for example, there is a partnership with the Black MBA Association (BMBAA) to offer "one exceptional business professional" of black or ethnic minority origin and resident in the UK a ?11,750 scholarship towards the cost of tuition for the executive MBA programme, for entry in September 2004. The scholarship selection process includes completing a 1,000-word essay, sitting the GMAT and completing a Cass MBA application form. The British Council will provide information on awards to overseas students. The Fulbright Commission, the British Marshall Scholarship fund and even Rotary International offer funds for foreign national students. Similarly, there are a number of substantial awards for study in the US. For other, more eclectic pots of money, check out www.studentmoney.org which lists over 9,000 award schemes with a value of several million pounds, some for which only MBA students students are eligible.
www.marshallscholarship.org
www.rotary.org/foundation/educational
www.fulbright.co.uk
www.britishcouncil.org

3. Take out commercial loans
The Association of MBAs administers, on behalf of NatWest bank, a preferential loan scheme for full-time, part-time and distance learning MBA programmes which are approved by the association. To be eligible to apply for an MBA Loan, you must be 18 or over, be a permanent UK resident (that's three years minimum immediately before study begins), have a place on an MBA programme accredited by the Association of MBAs, have at least five years of practical work experience within industry or commerce, or, if you are a graduate, you must have at least two years of work experience. The scheme is also available to individuals who have a place on selected leading MBA programmes outside the UK. The maximum amount available to borrow in any 12-month period is two-thirds of gross annual pre-course salary plus course fees, less any income from grants. MBA students (full-time, part-time and distance learners) are expected to make a contribution equal to 20% of the total course fees from their own funds. "Studying for an MBA can be costly in the short term, but future salary prospects for those who graduate are excellent," says Robin Taylor, head of NatWest personal loans. "Through our relationship with the Association of MBAs, we are delighted to support these valuable customers to help them get on in their careers." For further information on NatWest's MBA Loan, call 0800 200 400, visit your nearest branch or look online.

However, NatWest is far from being only bank keen to lend you money. Do your research and don't forget online providers generally offer more competitive rates than their high street competitors. A further option for homeowners may be to release equity in your house and pay for your MBA over the term of your mortgage. An unsecured personal loan carries less risk if you default on payments.

4. Take out government loans
While you won't get an LEA grant or student loan, you could apply for a Career Development Loan (CDL), a deferred repayment bank loan which allows you to borrow anything between ?300 and ?8,000 to help you fund up to two years of learning plus (if relevant) up to one year's practical work experience where it forms part of the course. The Department for Education and Skills (DfES) pays the interest on your loan while you're learning and for up to one month afterwards. If you finish the course before the agreed date, the repayment holiday will end up to one month after your last day of training. You then repay the loan to the bank over an agreed period at a fixed rate of interest. To qualify you "must live, or intend to train, in the UK and you must show that you are planning planning to use that training for work in the UK or elsewhere in the EU". CDLs are available via four banks: Clydesdale Bank, Barclays Bank, the Royal Bank of Scotland and the Co-operative Bank. Details are available from the participating banks, all of which produce their own leaflets. Alternatively, check the website

5. Help from your family
One option for financing business school is with the help of a supportive partner. In the US, it's not unusual for a wife or husband to support the couple with 'basic' employment while his or her partner continues to study, only for the 'worker' to return to school and finish their graduate studies when their partner qualifies and gains lucrative employment. Research from the Association of MBA's salary survey shows that 60% of respondents financed their studies at least partially through personal funds.

6. Evening, flexible or distance learning

Company sponsorship of employees on parttime and distance learning MBAs is prolific. Employers appreciate the value that MBA students can bring to the workplace immediately through applying their learning 'as they go'. But even if you have to fund some or your entire course yourself, the great advantage to parttime study is that you can continue to earn. Otherwise you're likely to miss out on up to two years' salary plus perhaps other benefits such as private health care insurance.