Applying for an MBA program may seem daunting and so might the curriculum and coursework. But for many students, the scariest part of all is actually paying for the degree.
Online MBAs in particular, which many top business schools—the likes of University of Southern California (Marshall), Carnegie Mellon University (Tepper), and University of North Carolina at Chapel Hill (Kenan-Flagler)—have, can still be fairly expensive to pay for despite it being generally cheaper compared to an in-person program. In fact, some online MBAs can have total program costs of over $130,000 in tuition alone, not to mention potential international immersions, on-campus weekends, and textbook costs.
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While every student wishes they can afford to attend their favorite school, reality can sometimes be a dream buster. Prospective students must find the right balance between what they want out of a program versus what they are willing—and can afford—to pay. Here are 5 ways you can help pay for your online MBA.
1. The DIY route: Self-funding your MBA
One of the biggest benefits of an online MBA is its flexibility. Because virtual classes may be hosted during the evening, the weekends, or even simply asynchronously, many students are able to work full-time at the same time.
You may also be able to take up a side-gig, like tutoring or interning or even doing a fellowship or apprenticeship.
The self-funding route is especially possible for those attending a less expensive online MBA program. At the University of Iowa (Tippie) (ranked no. 8 in Fortune’s 2024 ranking), total tuition is just $33,750 for any domestic student. At the University of Texas–Dallas (ranked no. 10), in-state tuition and fees is $36,078.
However, fully self-funding your MBA is not an overly common practice. According to the Education Data Initiative, 51% of MBA holders have student loan debt, with the average debt being $63,517 from graduate school alone.
2. Employer help: Tuition reimbursement
If you’re lucky enough to have workplace benefits that cover education costs, it is worth the time exploring how to tap into them. As of 2022, 48% of employers surveyed by SHRM offered formal tuition reimbursement for undergraduate or graduate programs.
To pay for his MBA degree, Brian Loftus, who lives in the Philadelphia area, split some of the cost with his employer. While taking classes through the hybrid online program at Lehigh University, Loftus was working in accounting for Merck, which has a relationship with the school. The company offered tuition reimbursement up to $5,250 per year (tax-free, as allowed by U.S. tax code) to offset the cost for its employees. Loftus says his total out-of-pocket cost was about $7,000.
“The reimbursement covered a significant portion of two courses in the Lehigh MBA program,” says Loftus. “To take full advantage, I typically would enroll in only one course in the fall and one course in the spring. While this plan extended a two-year program to almost five years, the financial benefit outweighed the additional time. Also, with a full-time job and a young family, one course per semester fit my schedule well.”
Dozens of large corporations, Bank of America for example, offer tuition assistance programs for graduate school, but it is important that you reach out to your own supervisor and human resources team to know the exact parameters before you think about enrolling. Some companies also have specific programs or universities in which the tuition reimbursement can be applied to.
3. Apply for loans
The least enjoyable—but one of the more practical ways—to fund an online MBA experience is via loans. It is important to consider whether you currently or will eventually earn enough to justify the debt and if a loan will fuel or foil your post-MBA path. For many of the current 43.2 million borrowers with federal student loan debt, it will take decades to fully pay off the money they borrowed.
Federal versus private student loans
- Federal student loans: With unsubsidized federal student loans, the interest rates are fixed at 8.09% for graduate students for 2024-2025. Payments are also not required until after you graduate, unless you fall below half-time enrollment status.
- Private student loans: Companies like Sallie Mae offer student loans to students for tuition, fees, housing, and more. However, it is critical to read the fine print before signing up for these loans. You may be required to make payments while you are still in school, and the interest rates may be high. Plus, they may require decent credit scores or a cosigner.
Across the U.S., student loan debt totals to around $1.7 billion, and a vast majority of the debt—92.8%—is made up of federal student loan debt.
4. Search everywhere for scholarships
Scholarships can also weigh into the equation. And a lot of schools use them as a way to market to, and attract, students, notes Caryn Beck-Dudley, CEO at AACSB, an international business education alliance that accredits schools and advocates for business education. But it’s important to note that scholarships usually amount to a few thousand dollars, not tens of thousands, she adds.
Virginia Tech encourages incoming students to apply for the scholarships it offers, but that money won’t cover the cost of the entire degree, according to Dana Hansson, director of MBA programs at the university. Endowments weigh heavily into the scholarship offerings at any school, and many of the richest (Harvard, Stanford, Dartmouth, Michigan, Syracuse, and others have long ranked in top endowment lists) can attract some very competitive students.
However, one of the hardest parts about scholarships is actually finding them. While many scholarships may be targeted at prospective undergraduate students, there are in fact many that graduate students are eligible for.
It is paramount that you start searching sooner than later since many scholarship applications have deadlines that you need to be aware of. Plus, they will likely ask you to provide additional materials, such as a program acceptance letter, financial aid award letters, FAFSA reports, recommendation letters, or essays.
Additionally, one often forgotten part about scholarships is that they could have tax implications, especially if they are covering items other than mandatory tuition and fees.
Institutional scholarships
The easiest way to get a scholarship is from the school you are directly applying to. While some schools automatically enter you into consideration for scholarships, others may have separate applications and more importantly—due dates. So, start looking early and see if you might need to submit additional materials, write essays, or gain recommendation letters.
At Indiana University, for example, students will be sent a scholarship application link following their admission interview. The maximum scholarship funds a student may be awarded is $25,000.
Community scholarships
Most states, cities, or regions have chambers of commerce or community foundations that are home to multiple scholarships, including for graduate students. Keep in mind that some of these scholarships may only apply to certain groups, such as those from underrepresented backgrounds or those pursuing a certain career path.
Help resources including the U.S. Chamber of Commerce’s directory and the Council on Foundations community foundation locator.
Industry scholarships
Companies across industry value MBA students, and resultantly are eager to help students propel their career in business. Finding a scholarship at a company you want to work at can also be a great way to build connections.
Here are a few resources for MBA scholarships:
5. Military benefits
Beck-Dudley also points out that being a veteran or member of the military is helpful for reducing the cost of an MBA. “The military is one of the few that covers all of the cost,” she says. “Also, going online works because military professionals don’t know when or where they’ll be deployed. It’s hard to transfer to and from programs.”
The flexibility and cost structure of any given program are major selling points and highly marketable to any working student, but especially to students with military reimbursement. And, conversely, the schools like that there’s no ambiguity on the ability to cover the cost of a degree.
The Post-9/11 GI Bill may cover part or all of the tuition, housing, and book costs for an MBA program. The Yellow Ribbon program can also help fill in the gaps and help pay for any tuition fees at out-of-state, graduate, or private school
The takeaway
Business schools are intensely competing for students. Some online programs are technically hybrid, meaning you can head to class if you live nearby and want to, or you can take all of your classes online. Others are fully online but offer one or two extended weekends in person, international immersion trips, or other added experiences to wow prospective graduates and enrich the curriculum.
Depending on the MBA program, those additional experiences may or may not be included in tuition, says Beck-Dudley. So it’s important to ask about those costs upfront, she adds.
How you decide to pay for your MBA is bound by your comfort level with debt, your ability to pay for some or all of it, and any employer benefits or scholarships you might be able to leverage along the way. The balance requires both flexibility and creativity, and ultimately needs to align with the reason you want the degree to begin with.
Frequently asked questions
How do students pay for an MBA?
Many students use a combination of loans, self-funds, and scholarships to pay for their MBA. You must weigh what is the most financially responsible route for your current and future salary.
Is an online MBA taken seriously?
Yes, most employers do not care whether you obtain your MBA online or in-person; what matters more is the skills you learned and the network you have been able to build.
How to get a company to pay for an MBA?
To get your company to pay for your MBA, it is best to first talk to your supervisor and the human resources department to see if they have a tuition assistance program. If you can prove that an MBA will significantly impact your performance in a positive way, they may be inclined to sponsor your education.
Check out all of Fortune’s rankings of degree programs, and learn more about specific career paths.
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