(Note: This post is more relevant for international students)
For a lot of international students like me, one of the major deciding factors while choosing an MBA program to apply to is the cost and availability of easy financing options. This becomes critical when you're relying on loans and fellowships to be the major contributors to your MBA funds. When I started researching the programs in the US last year, I spent many sleepless nights thinking if I should give up a 2 year US program in favour of one-year programs in Europe or Asia because of the high costs of the former. However, having worked only 3 years in the industry and with absolutely no managerial experience, I knew a 1 year program is not the right choice for me. So, I started ranking the US programs on the basis of availibility of funding options, apart from the other factors.
My research woke me up to a harsh reality - while federal education loans were easily available for US citizens, all private loans for international students in the US now need a US co-signer (a US citizen or permanent resident with good credit history in the US). The 2009 recession took away most of the "no-cosigner" loan programs schools offered earlier. Such programs are today limited to a very few schools. The good news - UCLA Anderson is one of them! This, along with how closely the MBA curriculum here aligned with my career goals, made UCLA Anderson my top choice.
Even if you do have sufficient savings and/education loan in your home country, do not get complacent! Funding options in dollars should be given preference. This is because your home country finances are always susceptible to the vagaries of foreign exchange fluctuations. Consider the case of India, where the Indian rupee fell 22% in less than 6 months between Oct 2011 and March 2012 - the time when most people apply to b schools. So, by the time I was done with my applications, the dollar value of my savings in Indian rupees had been eroded by a good amount and my roommate - who had an Indian loan sanctioned to cover his tuition in the US, suddenly found himself short of the needed funds.
If you're applying to UCLA Anderson, you'll have several options to hedge such risks. Consider this : In the 2011-2012 academic year, UCLA Anderson awarded over $7 million in fellowships and grants to full-time MBA students. Financial aid in the form of fellowships, grants and loans are offered up to the cost of education for all students.
And here are the various options available to incoming international students:
1. Fellowships:
a. Merit fellowships: Merit fellowships are awarded to students based on the strength of their admission application. Awards are for a two-year period and are made by the UCLA Anderson Fellowship Committee. Most of my classmates this year have received this fellowship in varying amounts.
b. Donor fellowships: These are based on donations from alumni, corporates, individuals, etc. and are awared on selection criteria such as professional development, intended career, community involvement, and/or financial need.
2. Need-based grants: This fellowship is awarded purely on need-basis and if you at all feel that you do not have enough savings, financial support, or fellowships, the need-based grant will atleast offset a small part of your total requirements. (You need to furnish sufficient proof in the form of bank statements, etc.)
3. Private loans:
a. No-cosigner loans: As mentioned above, UCLA Anderson gives you the option of taking a loan from the US even if you do not have a US co-signer. Anderson has tied up with Eli Lilly Credit Union, which lets you borrow to the tune of $85,000 ($42,500 per year) with convenient financing options. I and most of my international classmates are relying on this loan to fund the major share of the program.
b. Other private loans with co-signer: If you're lucky to have a US cosigner, you can easily get a loan from a private bank and fund the remaining cost of your program. CitiAssist and Charter One True Fit are some cool options. Click here for a comprehensive list of lenders.
More options open up once you start your MBA, especially as you enter your second year:
1. Teaching Assistantship (TA): If you score good grades in a class and can prove your ability to become the TA for that course, you can get tuition remission for that course and an additional monetary compensation (upto $27/hour)! Ofcourse, if you think you have a good deal of expertise and professional experience in a subject, you might be able to get a course waiver and TA in the first year itself!!
2. Second-year donor fellowships: Based on your first-year grades in the core courses, involvement in the UCLA Anderson community and other criteria set by the donors, you can even be eligible for a fellowship in the second year!
Check out the Anderson Financing your MBA page for the complete range of options available to you. Don't hesitate to reach out to me for clarifications on any specific option and do consider these seriously while selecting which schools to apply to. In the long run, funding can make or break your whole MBA experience!
~Ayushman Jain, MBA 2014
