How Much Will It Cost?

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Getting a graduate business degree is one of the best – and biggest – investments you will ever make. 

As you consider a graduate business education abroad, you'll face a host of questions about cost and financing. The cost of studying abroad depends on various factors. The key factors that will determine the total cost are:

  1. Country for study
  2. Type of the program (1 year/2 year)
  3. Cost of the program
  4. Currency exchange rates
  5. Length of stay
  6. Boarding & Lodging expense (only for self or with family)

Apart from the above costs, there are some expenses that are incurred prior to departure. These may include airfare, insurance, and visas. To arrive at a total cost of your program it is advisable to contact the sponsoring institution's / program's International Students Assistance department.

Tuition fees at US universities average about US$ 35,000 per year, and living expenses average about US$ 10,000 per year. Fees at UK universities average about GBP 20,000 per year and fees at Canadian universities average about CA$ 20,000 per year. Fees will vary across universities and countries. The figures above are at best an indicative range. It is best to check with each university individually for exact information regarding their fee structure.

Other important questions you should consider include:

  • How do I get a loan, and from which kind of institution?
  • Should I secure a loan from a bank in India or from a foreign (non-Indian) bank?
  • Will the loan be collateral based?
  • What will the interest rate be and to what benchmark will it be calibrated?
  • When does repayment begin and how long do I have to repay?

Your financing options are numerous. According to the mba.com Prospective Students Survey, your peers are paying for their management education in a variety of ways, with grants, fellowships, scholarships, and loans making up the majority of the financial mix.

Students who are economically underprivileged but have secured admission to studying abroad can take advantage of a variety of funding resources such as need-based grants from universities, grants from trusts, and bank loans. Not every university offers financial aid. You should check the financial aid options before you apply to universities. Additionally, in India, you can consider approaching various trusts such as Lady Meherbai D. Tata Education Trust, Aga Khan Foundation, Jawaharlal Nehru Memorial Trust scholarships and Nanabhoy Jejeebhoy Charity Trust, which offer loan and grants to students seeking education abroad. You can contact these institutes for further details.

Opting for an Education Loan

Once you receive your letter of admission, you'll face the question of financing. While an education loan is one of the most feasible options, making a decision on a lending institution is a big question. When choosing a bank, you'll want consider interest rate, prepayment penalty, collateral requirements, and repayment options.

For loans, most Indian banks now provide up to 20 lakh education loan and some state run banks will offer you a certain amount of the loan (generally 7.5 lakh) without any collateral or security and offer good interest rates as well. Please contact individual banks to get an idea.

For loans, most Indian banks now provide up to 20 lakh education loan and some state run banks will offer you a certain amount of the loan (generally 7.5 lakh) without any collateral or security and offer good interest rates as well. Please contact individual banks to get an idea.

Your Potential Return on Investment (ROI)

Whatever you decide, you can expect that your degree will expand your career options and enhance your earning power. Although the exact future value of a degree is hard to predict, there are tools to help project possible ROI. Visit websites such as finaid.org for sample calculators and “what if” scenarios to identify potential ROI, break-even, and the Net Present Value (NPV) that you may expect from your graduate degree, based on your inputs.