Financing Your MBA: Planning and Budgeting Tips

Earning an MBA gives you the skills and network to lead with impact. As you explore your options for pursuing an MBA, it’s crucial to understand all the options for financial aid. Let’s take a deep dive into financing your MBA at the Foster School of Business.

Financial aid encompasses various forms of assistance, including scholarships, grants, loans, and work-study programs. The Foster School of Business has simplified each step of the financial aid process, empowering you to make informed decisions.

Please note that this information is for students who are U.S. citizens or permanent residents.

Financing your MBA: Overview

Financial aid is any resource you do not withdraw from your bank account or other assets. When considering financial aid, it’s essential to understand the concept of financial need, which is determined by factors such as the cost of the MBA program and the expected family contribution (EFC).  This is determined by subtracting the expected family contribution from the total cost of the MBA program. The expected family contribution is calculated based on the financial resources of the student and the student’s family, minus related expenses. Financial aid is evaluated and processed yearly, and the expected family contribution may change between enrollment years.

Budgeting

When budgeting for an MBA program, it’s crucial to establish a framework that suits individual preferences and needs. Consider creating a spreadsheet or using other methods to monitor expenses and deadlines. Understanding the program’s start date and duration is crucial, especially considering how the academic calendar spans multiple years, potentially impacting financing options such as employer tuition reimbursement or tax deductions.

Identifying payment due dates throughout the program is also essential. By overlaying these dates with estimated costs and funding sources, you can ensure you stay on track with your financial obligations.

Expenses

It’s also essential to understand the specifics of MBA expenses. Foster MBA programs operate on an all-inclusive model, encompassing tuition, materials, and other associated costs within the program fee. Students don’t have to worry about additional expenses such as textbooks or campus parking fees. The all-inclusive model makes it easier to budget for financing your MBA.

Find your best fit: Full-Time MBA Calculator

The Foster School of Business developed a free Full-Time MBA rankings calculator to help you find your best fit and identify the most cost-effective program. (The calculator only offers insights into two-year, in-person, full-time programs.) Use the calculator to match your priorities using business school rankings data from Poets & Quants, Businessweek, Financial Times, Forbes, and the U.S. Department of Education. The MBA calculator’s metrics include average student debt upon graduation and return on investment.

Exploring MBA funding sources

Students usually fund MBAs with several sources, including:

• Personal Earnings and Savings
• Employer Support: Some companies offer tuition reimbursement programs for employees pursuing higher education. Check with your employer to see if you qualify.
• Scholarships: Scholarships provide merit-based or need-based financial assistance. Multiple avenues exist to secure a scholarship, including fastweb.com, a free service that provides personalized scholarship recommendations. Students from traditionally underrepresented communities may also qualify for specialized scholarships.
• Federal Student Loans: Federal student loans offer funding options for MBA students.

• Grants: Grants are similar to scholarships but are typically awarded for specific purposes, such as research or study abroad.

MBA student loan options

The most commonly used resource for financing an MBA is the Free Application for Federal Student Aid (FAFSA). Prospective Foster MBA students should include the school code 003798 on the form.

Upon completing the FAFSA, the student and the educational institution receive a copy of the Student Aid Report. This document outlines the applicant’s financial standing and eligibility for aid.

Foster uses the information from the FAFSA to generate award letters detailing the financial aid packages available to accepted students. These letters serve as a guide to evaluate and accept or decline various forms of financial assistance.

Types of student loans

Understanding the types of student loans available is crucial in making informed decisions about financing your MBA. There are two categories of Federal student loans: the federal direct Unsubsidized Graduate Stafford Loan program and the Federal Direct Graduate Plus loan.

The Stafford Loan program enables students to borrow up to $25,000 unless the borrower had previously defaulted on a prior student loan.

The Federal Direct Graduate Plus loan (GPLUS), which is based on creditworthiness, allows you to borrow up to the full remaining cost of the program minus any other aid awarded.

Students can qualify for both programs, which, when combined, can potentially fund the entire cost of an MBA (without using personal savings).

Pay careful attention when completing the student loan application process, and provide any additional documentation required for loan disbursement. The financial aid cycle operates annually, so you must complete the FAFSA each academic year.

Education Benefits for Veterans and Military

Veterans or military personnel may qualify for additional exclusive means to finance their educations based on their service level and transition status. Timing is crucial, particularly for those transitioning out of the military, as there should be a clean break between service end and filing for VA (Department of Veterans Affairs) benefits.

Funding for qualified veterans through the VA typically encompasses tuition, book stipends, and a monthly housing allowance. (Active-duty members will not receive the same benefits.)

Among the programs used by incoming students, Chapter 33 (Post-9/11 GI Bill) is the most common. In contrast, Chapter 31 (Vocational Rehab) and Chapter 30 (Montgomery GI Bill) are less common due to changes in eligibility and benefits over time but might be applicable depending on your circumstances.

As part of your research, verify whether your program is part-time or full-time. For example, Foster’s Executive MBA program is considered full-time, generally defined as taking at least ten credits per quarter, which impacts the amount of financial aid available vs. part-time programs.

If you’re the child of a veteran or active-duty military personnel, you may qualify for other funding. For example, your parent may have transferred education benefits to you upon their retirement. Be sure to explore all your options.

To learn more, students can contact the University of Washington’s Veterans Benefits Office or the VA advisor for Foster Executive MBA students. 

Financial aid office

The University of Washington’s Student Financial Aid Office is a crucial student resource. This office is central to generating award offers and helping students who need to change their financial situations. Don’t hesitate to reach out.

Personalized support

For personalized assistance and guidance for financing your MBA, contact our Foster MBA teams for support.