We look at why potential earnings following the completion of your MBA outweigh the initial cost of tuition fees.
The tuition fees you are expected to pay to guarantee your place on a Masters in Business Administration (MBA) course, at first glance, might seem steep, especially if you’ve not researched the various funding routes previous MBA students have taken.
Funding shouldn’t put you off joining an MBA course. While there’s no getting away from the fact that course fees can cost anywhere between £16,000 and £73,000, depending on your chosen institution and its reputation, looking beyond initial cost, the long-term benefits of you studying an MBA will far outweigh the short-term hit to your bank account.
Here are the main reasons an MBA is well worth the cost.
The initial expense is far outweighed by future earning potential
We can’t stress this enough. The key point here is that graduates are able to kick on in their career and make progress that others without an MBA simply can’t – both in terms of career progression and salary increases.
You only have to read about or listen to MBA students to see just how much an MBA has benefited their careers. You can also see how financially astute individuals understand how the MBA will help their earning potential, and how they are conscious – and confident too – that the initial premium will be paid back with future income.
“Over ten years, I have only got to earn an extra thousand pound per year to pay this back. Over twenty years, if I can manage to earn an extra ten or twenty thousand a year, it will work out as one of the best investments that I’ll ever make – thinking about it, if I was investing in stocks and shares, I’d never make that kind of return!” – Michael Cowell, Manchester Met MBA student.
Funding advice is freely available
You’re not alone in wanting to embark on your MBA journey. In the United States in 2014, the last year where data is available, the MBA was the most popular master's degree, a trend that business magazine FORTUNE attributes to the fact that more employers than ever are looking to hire MBA-accredited employees.
The fact that so many others have taken this route means you can turn to past MBA students for guidance. Take a look at our own MBA student profiles for more of an idea on everything from course structure and modules, to the benefit of studying alongside like-minded individuals, to funding itself.
This advice extends into the MBA course itself, whether you join the general MBA or specialise in healthcare, finance or digital management. On each course, you have the support of experienced business professionals who provide one-to-one tuition and who, if required, can provide you with advice long after you’ve finished your studies.
There are a number of well-trodden routes towards securing MBA funding
Some employers are willing to put ambitious employees through MBAs if they think that it will give their business a boost in the long term. Forwarding thinking companies will see it as a way to develop staff who they think will provide benefits for years to come.
Stephen “Paddy” Dyson’s employer sponsored his MBA. Read his story and how it came about that his long-term employer chose to fund his studies.
One option is to partly fund your MBA and to combine it with another route, such as help from your employer or via a scholarship discount. This is the most common way for MBA students to fund their studies because it’s only possible to get a loan of £10,000, with the rest needing to be covered by another method.
Self-funding is a viable option if you are comfortable paying either the whole amount for your tuition fees, or you opt to self-fund alongside a loan or a scholarship discount.
Oliver Reeves self-funded his MBA after receiving a discount for successfully gaining a scholarship. Read his story, including how he applied and why he chose the self-funding route.
Additionally, read how an MBA scholarship can change your life.
Crowding is perhaps the least common funding route because it relies on the generosity of others, but it’s still one worth considering if you believe you’ll be able to market your cause efficiently and raise enough funds.
Decided the MBA is for you? Here’s what to do next
Download our guide to funding your MBA which outlines the main methods of funding that most students pursue when embarking on this life changing path.
Once you’ve decided an MBA is for you and have chosen your preferred funding route, start your application and begin your MBA journey.