Category: MBA admission

Though many business school applicants know exactly what they want to do – and how much they hope to make – after they graduate from an MBA program, a surprising number apply to school without thinking about how they’ll pay for this expensive degree.
While some students do foot the entire bill themselves or receive scholarship support from the school or an outside institution, the vast majority of MBA students borrow funds to cover their tuition and living expenses. With this in mind, we wanted to cover some very basic information on loans for the benefit of both recent admits entering school this fall and early birds just beginning to think about their applications for Fall ’12.
The primary source of funding for U.S.-based applicants will be federal loans or alternative education loans. The main federal loans, available to U.S. citizens or permanent residents, are the Federal Stafford Loan (subsidized or unsubsidized), the Federal Perkins Loan and the GradPLUS Loan. Full-time students, usually those enrolled in two or more courses per semester, can borrow as much as $20,500/year through the Federal Stafford loan program. Perkins Loans are low-interest (a rate of 5 percent) loans with a maximum annual loan amount of $8,000/year for graduate students. The Grad PLUS Loan can be used to pay for the total cost of education less aid you’ve already been awarded. Those interested in applying for federal student aid should check out the Free Application for Federal Student Aid (FAFSA). When federal loans are not enough, private loans can help bridge the gap in education costs. Students might contact their local bank or look into lender programs, such as SallieMae or Access Group, for details on borrowing eligibility.

International students are not eligible for federal loans but may consider private loans as a financing option. The International Student Loan Program (ISLP), for instance, offers a credit-based loan to international students who are looking to finance their education in the U.S. However, as with most private loans, this loan requires a U.S. citizen or permanent resident to co-sign. International students can also visit International Education Financial Aid (IEFA) to search for funds (as can U.S. citizens planning on studying overseas). Finally, most of the leading MBA programs offer private loans to their students in partnership with a particular financial institution – some of which do not require a co-signer – so this might become an option after one is admitted.

Many need-based loans are classified as subsidized, meaning that interest does not accrue while the borrower is enrolled in a degree program (whereas interest begins to accrue immediately on unsubsidized loans). Typical timelines of loan repayment can extend from 5 to 30 years, depending on the lender’s conditions of deferral and the amount of funds borrowed. After graduation, students usually have a six-month grace period before monthly repayment begins. While schools’ admittance packages usually include detailed information about financing the MBA, incoming students and applicants should not hesitate contact the school’s financial aid office for further information on available need- or credit-based loans.

Top MBA programs including those at Harvard Business School (HBS) and the MIT Sloan School of Management are turning to the likes of Lady Gaga and Shakespeare to provide examples of successful leadership and strategy, acocrding to a recent article in the Toronto Star. In the wake of the financial crisis and the resulting loss of faith in leadership, they’ve had little choice but to look outside the traditional business world in order to continue teaching by example, the Canadian paper suggests.

At HBS, a class called Strategic Marketing in Creative Industries gives students a chance to examine the career moves of 25-year-old Stefani Germanotta and her transformation into pop icon Lady Gaga. The HBS course looks to Gaga to understand the importance of contracts and how to manage your message through social media. Business schools in Europe – including Germany’s ESMT and Antwerp Management in the Netherlands – also have zeroed in on Gaga as a case study to teach strategic innovation, the Toronto Star reports. And the London Business School had students look at Kiss guitarist Gene Simmons for lessons on how to monetize a fan base.
Meanwhile, at schools like the MIT Sloan School of Management and NYU’s Stern School of Business, Shakespeare’s Julius Caesar and Henry V are providing examples of leadership to students. And at Canadians schools like Toronto University’s Rotman School, hockey stars are coming in as speakers to advise and inspire future business leaders. Toronto Maple Leafs’ GM Brian Burke recently shared his views on Steve Jobs and the need to be tough. “There isn’t anyone who has made a hard decision who doesn’t have a ruthless side,” he told the students.

For the complete Toronto Star article, click here.