You have a plan and taking an MBA is included in that plan. So the next question would be; how does one finance the MBA? As I have said in my previous posts, the MBA will take a substantial amount of money. One thing unique about AGSB’s business school is that they do not have such a thing as scholarships. Meaning you can never depend on any subsidy from the university even if it is partial. As of the moment the standard program cost around Php 11,000/ subject for 19 subjects in 2 years (You do the math). Each program offered in AGSB has a different fee schedule so just check the AGSB website.
I think that the best rule of thumb to have when planning to take the MBA is to have at least half of the money already at hand (better if you have 2 yrs worth of money already). This will get you through at least half of the program without thinking much of finances. But of course we are not certain if we already have that amount in hand already so here are other options for the prospective student:
Parent’s money
The set-up here in the Philippines is different than it is in the US or other parts of the world. In the US for example the obligation of the parents to send you to school is up until high school (you think how to get through college), here you can ask for help up until graduate study. That is of course if your parents are rich. You can do 2 things. One to ask them for money which I do not advice because you are already in grad school (this is your plan remember). It also would give a burden to your parents who are probably thinking of retirement already. Another thing it to borrow from them with a promise to pay back after graduation when you probably are able to get a higher paying job.
Savings
Setting aside a specified amount every payday would be able to help you finance your MBA. Of course this entails sacrifice of letting go of luxuries. It would go on for 2 years.
Employer’s subsidy
You can also resort to having your employer finance your MBA. This is on a case to case basis depending on your company. Beware however of the catch, you are going to get tied up to your company for several years after graduation. This is fair enough because the employer shouldered the entire MBA. It all depends now on your plan.
Salary loans
If you are still short, you might want to consider taking a loan. When I say taking a loan I do not advice you to borrow from lending companies or loan sharks which charges you an effective interest rate of 20-30% per annum. Don’t be fooled by the flyers. Best way is to borrow from a bank directly (still lower than lending) or take a salary loan to a bank via your HR department. The interest is lower than borrowing directly from a bank because it is a corporate account of HR (10%pa). You can also negotiate the terms if you can pay 12, 24 or 36 months.
Aside from tuition payments you might consider the following in planning your finances:
Laptop – This is not really a requirement in the MBA. This is used only in class presentation which happens most of the time. You can just ask your classmates to bring their own laptop for your groups use if you cannot afford one. Instead of using a laptop, I use a notebook because it helps me remember if I write things down. Serious thought should be given on this one because the cost of a laptop can already pay for 4 subjects in the MBA.
Books – This depends on your professor. You can choose to buy books as an investment or you can borrow from other MBA students that already took the subject.
Transportation- This is your cost of going to school for class. You might also spend this when you have group works etc.
So how will you finance your MBA?
