Should a Business School Scholarship Impact Your MBA Choice?
A brief look at Clear Admit MBA DecisionWire appears to indicate that more and more leading MBA programs are offering scholarship money, either need-based or merit-based, to encourage admitted candidates to enroll. This may be the result of competing for a smaller pool of top applicants amidst declining application volume (particularly in the USA and Europe).
This scholarship money reduces the price of the MBA, and therefore alters the calculus in terms of the cost-benefit analysis of the program. If you do have admissions offers from multiple programs, some of which include scholarship money, you will need to weigh whether the reduced cost alters your order of preference for schools.
Cases where scholarship dollars can alter your order of preferences include:
- Career Goal Impact: When your career aspirations, both short-term and long-term, are not impacted by choosing the program that would be from a lower-tier. For example, you are not seeking a career in consulting at the elite consulting firms, which generally focus their recruiting at the very top schools. Nor are you seeking opportunities in private equity and venture capital – jobs in this field are scarce and very much limited to top schools with strong networks in the domain. Perhaps you know where you plan to be post-MBA regarding geography, and the school that is offering you scholarship has a significant alumni presence in that region which would facilitate achieving your goals.
- Scholarship Prestige: The scholarship award is prestigious at the school, and offers you opportunities at that program that are not available to the general student body. For example, you may have access to a special mentor program. A ‘named’ scholarship is also something you can place on your resume, helping you to stand out from other students at the school. These advantages might be enough to sway a decision in favor of a lower-tier program, but they are only really compelling if your recruiting goals are not geared towards the firms that concentrate their hiring at the very top programs, as noted above.
Fundamentally, it is important to weigh a scholarship offer from both a short- and long-term perspective. While it might be compelling in the short-term to graduate from your MBA program with $100,000 less in debt thanks to a scholarship, that $100,000 in savings, discounted over a 40 year post-MBA career, may be small compared to the better career opportunities afforded by a more prestigious MBA program. This is exponentially more important when your career goals are targeting the high-paying careers of consulting, banking and tech – not to mention that those jobs often come with significant signing bonuses which can instantly help with some of those tuition loans. However, if your career is targeted to social impact and non-profit, and other careers that generally don’t pay as high a salary, the value of the scholarship, and reduced debt upon graduation, is more appealing.
Finally, if you are an international student, you need to factor in your desire to remain in the country or region of your MBA program, and how important that is, based on your potential to earn the same salary in your home country. A number of international students are using the MBA to help them relocate, but given the current immigration environment, the potential for doing this may be more limited. A scholarship, lowering the cost of the MBA, reduces the risk to the student who has to return to their home country upon graduation. The counter argument is, the more prestigious the MBA program to which you gain admission, the greater your opportunity of getting an offer that allows you to remain in the country of the MBA.
Overall, it can be tempting to jump at a substantial scholarship – especially when the loans one takes for an MBA program seem truly daunting. But in the end, just as with investing in the stock market, a long view is needed when computing the true value of such scholarships.
This article has been edited and republished with permissions from our sister site, Clear Admit.
How To Begin Your MBA Search, Pt. 3: Recognizing the Best Resources
You can find the first and second installments of our ongoing “How To Begin Your MBA Search” here.
So, you’ve narrowed down the list of business schools to which you’re applying, keeping in mind location, student body make-up, potential networking opportunities, the return on investment, and your professional goals. But while there are an additional host of ineffable qualities that guide a prospective MBA to one program or another, you must also keep in mind the resources of the programs that make up your short list. The importance of these resources will certainly depend upon your own subjective needs, but most potential MBAs will find it necessary to consider the following factors before making decisions on program choices.
Money, Money, Money
Suffice to say, business school is not cheap. Tuition at some programs can soar north of $60,000 USD per year, and unless you are currently working and your employer is chipping in, you will probably worry about how you will pay for school (particularly if you’re out of the workforce). Thus, sussing out which schools provide merit, and finding need-based scholarships is a good method of finding which schools might make the top of your list. And while a significant return on investment is almost guaranteed with an MBA, it goes without saying that graduating with less debt is preferable to graduating saddled with loads of it. Luckily, according to U.S. News & World Report, many more schools are offering such financial assistance, so if you do your research and get busy applying for fellowships and awards, you might be able to lighten the dreaded b-school burden!
I Went Looking for a Job and Then I Found a Job
Hillary Schubach of Shine MBA Admissions Consulting says that potential b-school applicants should ask, “Are there campus resources, student organizations, and activities that align with your interests?” As discussed in the second part of our series on starting the MBA search, while building a network is important, a b-school’s career services resources are also well worth researching. Where are alumni placed? Does the career services office seem robust and well-staffed, and are the advisors in-house or outsourced? These should be pertinent questions to you and any future MBA.
Know Who You’ll Be Learning From
Finally, before settling on any program, identify the professors whom you’ll most likely be learning from, and maybe try to find out more about their teaching style. Stacy Blackman of Stacy Blackman Consulting suggests asking, “what teaching methods appeal to you? Are there particular teachers, courses, fields of study or extracurriculars that appeal to you at certain schools?”
While some of these questions might have been answered when you asked yourself questions regarding where you want to end up after graduation, it is worth reiterating that if you’re unable to learn in certain environments or within certain teaching styles, you won’t be able to achieve your goals as smoothly.
Schubach gives the following advice :
“Core classes and electives that fit your career goals are extremely important. Do your needs align with the academic strengths of the school? Are you looking for a general management program, or one where you can select a concentration in your target field?”
In other words, it isn’t just the professors, but the structure of the program itself that is worth looking at closely— are the core classes suitable to your end goals? Do you need more or less structure in an academic setting?
While it seems like there are an infinite number of factors to weigh when finding the right MBA program, remember that on graduation day, you will want to look back on your b-school experience as one that was well worth it, which makes the questions all the more necessary.
Get Ready for These March MBA Deadlines
Be on top of the MBA application process and submit your graduate school applications in a timely fashion. Getting applications in early can increase your chances of scholarships and other not-to-miss opportunities when applying for your MBA. Here’s your guide to the March MBA deadlines in some of the biggest metros. Continue reading…
These LA Business Schools Are Helping Low Income Students Pursue Their Dreams
For many low-income applicants, unfortunately, the cost of an MBA program is just out of reach. That’s because, by the time you count tuition (often upwards of $80,000), boarding and books ($40,000), and other expenditures, the average cost of an MBA is around $140,000 according to Investopedia. And that’s all before you count lost salary for two years for a full-time MBA program.
What can you do?
For low-income MBA applicants in Los Angeles, California you don’t have to give up on your dreams due to money. Instead, business schools offer many options to help pay for your MBA program.
California DREAM Act
The California DREAM Act of 2011 is currently available to California residents who attended and graduated from high school in the state and are enrolled in an accredited California Institution of Higher Education. If you meet these eligibility requirements, you’ll be given access to California State financial aid and scholarships as well as specific university financial aid programs. In addition, need-based graduate applicants are eligible for the State University Grant (SUG) program, which awards up to $7,176 to help cover tuition.
California State University’s Long Beach College of Business Administration is just one of the MBA programs that provides this type of financial aid to low-income MBA applicants. The College of Business Economics at Cal State L.A. also accepts DREAM Act Applications for student financial aid.
Scholarships
MBA scholarships for low-income applicants are one of the best ways to help pay for your degree program. Scholarships vary by school and can range from a few thousand dollars per year to full-tuition coverage plus a stipend.
At the UCLA Anderson School, there are six unique fellowships available to MBA applicants.
- Donor Fellowships are awarded to MBA applicants based on professional development, intended career, community involvement, and/or financial need.
- Merit Fellowships are awarded based on the strength of a student’s application.
- External Fellowships are available for a variety of different situations and students. One example is the Girard Miller Foundation scholarship, which is awarded to a graduate student preparing for a career in state or local government finance.
Teaching Assistantships
For California MBA students, financial aid doesn’t stop in the first year. For second-year full-time MBA students, many Los Angeles business schools offer Teaching Assistantship (TA) positions. These positions are usually awarded to students who keep their grade point averages above a certain level and who apply and receive an appointment. The award amount varies by business school but, in some cases, covers 100 percent of a student’s services fee and tuition.
At UC Irvine’s Paul Merage School of Business, full-time MBA students who gain a TA appointment receive payment for 100 percent of their Graduate Student Health Insurance Program (GSHIP) premium. They also receive 100 percent of the Student Services Fee and Tuition components per quarter.
Military Veteran Aid
For low-income MBA applicants who also have a history of military service, there are many unique financial aid opportunities. The exact services available will depend on the school, but some of these programs are available at schools across California and the U.S.
First, there’s the Yellow Ribbon Program, which many Los Angeles business schools take part in, including Chapman University Argyros School of Business. This program awards MBA students up to $6,000 for tuition and fees. Another program open to military veterans is the Post-9/11 GI Bill, which includes payments directly to the university for tuition and fees, a monthly housing allowance, and an annual books and supplies stipend up to $1,000 per year.
Individual schools like the USC Marshall School of Business also offer their own specific scholarships for military veterans. The Schoen Family Scholarship Program for Veterans is available to full-time MBA students at Marshall and has, to date, provided a staggering $1.2 million in financial support to 173 students at the university.
Loans
Finally, most low-income MBA applicants in Los Angeles are eligible for federal student loans. Direct PLUS Loans are available to graduate students to help pay for educational expenses up to the cost of attendance. MBA students can request unsubsidized loans up to their full eligibility with an Income-Driven Repayment Plan that allows you to make payments based on your adjusted gross income. In most cases, payment will begin until after graduation.
For MBA applicants at Pepperdine University’s Graziadio School of Business and Management, financial aid loan application for Federal Graduate PLUS student aid and Federal Direct Stafford Loans is easy. The school provides loan counseling for graduate student borrowers, loan calculators, and more.
For more information about how your business school could help cover the cost of your MBA program, visit your school website and contact their financial aid office. Scholarships, loans, and aid opportunities vary per school. The Simple Dollar also has a handy guide on how DACA recipients may be able to handle financial expectations for students around the U.S.
How Chicago Business Schools are Helping Low-Income Students
Business school doesn’t come cheap, which often means that prospective students who could benefit the most from the lucrative career opportunities that come with an MBA either don’t end up at top tier programs or don’t end up applying at all.
The flip side is that MBA programs now more than ever desperately need more diverse perspectives in their classrooms—yet it seems the same ol’ folks end up in these slots every year. Many in academia are woefully ill equipped to meet the challenges of a more diverse and inclusive business landscape but there are a handful of MBA programs that have begun to catch up and take strides to make business educations more accessible to qualified low-income applicants.
The Chicago metro just so happens to be packed to the gills with high-ranking MBAs that take initiative to help promising candidates. Let’s take a deeper dive into four of our favorite Chicago MBA programs that have historically lent a hand to low-income students.
Northwestern’s Kellogg School of Management
Situated just above the city limits on Chicago’s North Shore (see: John Hughes movies), the Kellogg School of Management is among the nation’s most coveted MBA programs—and among the most generous too. Kellogg offers a variety of different scholarships based on merit or financial need for newly admitted students and rising second-year students, as well as external scholarship resources through the Office of Fellowships for Graduate Students.
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Director of Admissions Melissa Rapp explains that Kellogg understands that funding a business school education can be challenging. “To help students meet this challenge, a variety of merit scholarships are offered, including diversity scholarships, such as James P. Gorter Scholarship which is awarded to under-represented backgrounds in the Two-Year MBA or MMM program, and academic, professional or special interest scholarships, such as the Health Enterprise Management Scholarship which is awarded to an outstanding student interested in pursuing a career in healthcare.”
UIC’s Liautaud Graduate School of Business
UIC Business provides opportunities to empower graduate students with a dynamic, proven, business education, and an immersive city experience that enhances both quality of life and career opportunities. Many UIC Business students have financial need and the school makes a point to acknowledge its dedicated staff of advisors who help every student navigate the financial aid process. Alanna O’Connor, Assistant Dean for Student Recruitment and Sid Balachandran, Program Director, explains:
“As a state institution we strive to maintain costs for students and are committed to providing a world-class business education at a campus nationally recognized for its diversity. We offer our competitive programming at a more affordable value than some of our peer schools. The affordability of our program is an important part of providing a high return on investment. Multiple tuition waivers, scholarships, assistantships—teaching or research—are also are available for students who qualify.”
Notre Dame’s Mendoza College of Business
The Mendoza College of Business walks the walk when it comes to a socially engaged, community-centered vision of business. Part of that mission entails actively courting and supporting stellar applicants who might demonstrate need, particularly women through the Forte fellows program.
“As a sponsor school for the Forte Foundation, Notre Dame is committed to launching women into successful business careers. Forte Fellows are recognized for their academic aptitude, leadership, and future potential,” the school notes. “Forte Fellows are granted special access to the Forte community, including leadership conference access, mentoring and career development opportunities, and network development.”
It also means that students with deep interests in corporate social responsibility might do well to apply to Mendoza. According to Mendoza, it awards more than 65 percent of one-year MBA students merit-based fellowships based on “academic performance, prior work experience, GMAT or GRE scores, leadership potential, letters of recommendation, and each applicant’s personal statement.”
Lake Forest Graduate School of Management
In its commitment to “attract and develop outstanding leaders who change lives,” Lake Forest has a number of MBA-centric fellowships and scholarships:
- The President’s Scholarship supports “proven leaders who have achieved measurable results, demonstrate a high level of self-awareness and adaptability, and are committed to developing their leadership potential.”
- The Emerging Leaders scholarship supports students who “demonstrate exceptional leadership potential and show the ability and desire to deliver meaningful results, think innovatively, and gain a heightened level of self-awareness.”
- The $3,510-7,000 Leadership Scholarship supports students who demonstrate financial need and “strong leadership potential, verbal and written communications skills, intellectual ability, and motivation.”
- The Yomine Scholarship supports students “are employed in a manufacturing position” who demonstrate financial need
- The $3,510 Tuition Assistance Grant supports “candidates who are not eligible to receive tuition assistance from their employer.”
- The Gariano Scholarship supports “women with an undergraduate nursing degree” who demonstrate financial need.
Loyola’s Quinlan School of Business
The Loyola Quinlan School of Business offers two merit-based scholarships to MBA students: the Dean’s Merit Scholarship, which typically covers 1-2 courses, awards “stellar academic performance” and the $1,000-10,000 Graduate Business Student Scholarship, which supports students “who have proven academic success and demonstrated financial need.”
How Philadelphia MBA Programs Help Lower-Income Applicants
Compared to Philly’s east coast metropolitan peers, its cost of living is laughably low. Additionally, Philly has all of the advantages of being located smack dab between DC and NYC. Although Wall Street has long since displaced Philly as the American center for banking, much of that infrastructure and tradition remain, which helps Philly maintain its status as a major economic powerhouse in the 21st century.
Since, according to Philly Mag, Philadelphia has one of the fastest growing millennial populations in the country, the city has creativity and energy that permeates every sector. All of these factors make Philly the perfect place to launch a career.
For low-income students looking to pursue an MBA in Philly, we’ve compiled a list of what some of Philly metro’s top schools are doing to help students fund their higher education.
Fox School of Business — Temple University
The Fox School of Business at Temple University has a variety of options for students looking to finance their MBA. In fact, according to the school’s website, 60 percent of first-year Temple students receive need-based aid each year. On average, first year students receiving need-based aid are awarded $15,000 toward tuition. Fox carefully assesses the applications of all incoming students, and the school distributes merit-based scholarships for those who demonstrate particular promise. There are also specific financial perks for Temple alumni coming into the MBA program. These students are not required to pay an application fee and receive a five percent tuition scholarship.
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Lehigh University College of Business and Economics
The Lehigh University College of Business and Economics provides a some merit-based scholarships to helps students fund their education. Awards are determined by the Committee on Financial aid. The committee considers an applicant’s undergraduate record, test scores, and work experience. Scholarships include the Dean’s Scholar, which offers extremely promising students a full ride plus a $10,000 living stipend.
Lehigh also has a number of Director’s Scholars, who may receive awards anywhere from $5,00 to full tuition. Lehigh offers many other scholarships in addition to need-based financial aid specific that varies depending on the MBA track.
LeBow College of Business — Drexel University
When considering Philly Metro MBA programs that provide resources for low-income applicants, it would be remiss not to mention Drexel’s LeBow College of Business. At LeBow, an impressive 82 percent of full-time MBAs get aid that amounts to 62 percent of tuition. Additionally, nearly 70 percent of full-time students benefit from grants that covered about one fifth their tuition. Drexel also offers merit-based scholarships. Additionally, the school offers the URM Scholarship, which offers supplemental fiscal gifts to underrepresented minority students.
Smeal College of Business — Penn State University
Penn State’s Smeal College of Business has a large number of MBA alumni-funded scholarships that are awarded based on academic achievement, work history, and how well students fit into the Smeal program. Around 20 percent of incoming students receive $5-10,000 awards. There are fellowships for specific groups of students, including the Powerful Women Paving the Way Fellowship which is awarded to promising women, and the Maimuna Mijindadi Anyone Memorial Fellowship, for students of Nigerian descent.
The Wharton School — University of Pennsylvania
Students who apply to Wharton are automatically considered for fellowships that offer some level of financial support. Students also have the option of applying to any of over 700 external fellowship programs. Wharton students can also apply for private or federal loans.
The Ivy League business school offers a litany of scholarship opportunities for incoming and current students, from the American Association of University Women, to the Instituto Ling Scholarship Program for international applicants, among others.
Additionally, Wharton hosts a positively booming array of fellowship opportunities, including some of MetroMBA’s favorites, like the Forte Fellowships program and the Reaching Out LGBT MBA Fellowship.
For more information on Wharton’s many financial assistance opportunities, click here.
