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HOW TO PAY FOR AN MBA

“C.R.E.A.M (cash rules everything around me)” - Wu Tang Clan

This is a very typical question that I hear from transitioning military service members. Graduate degrees are some of the most expensive degrees that you can “earn”. A typical MBA can set you back $150,000 dollars. That seems like an outrageous amount and it is. It’s critical to understand a couple things,

MBA programs factor in cost of living into the total cost of an MBA. This gives you a good idea of what it is going to cost to attend a program. YOU CAN TAKE OUT STUDENT LOANS TO COVER ALL OF THIS….INCLUDING COST OF LIVING. I will cover how to pay this back later in the section. As you can see that cost is $86K…for a year. So multiply that by two playboy

Tepper tuition cost.PNG


  1. You probably will not pay the sticker price for an MBA. You beat down the cost by using the following

    • Scholarships

    • GI Bill

    • Internship pay

    • Signing Bonuses

    • Year end bonuses

    • Increased salary after graduation

  2. Let’s talk about Scholarships. A couple important things to note.

    • Generally, they are only available to full time students

    • Schools use scholarships to entice competitive students to come to their programs. It’s as simple as that. The more money a school throws at you, the more they want you. That seems like common sense but idk people are crazy.

    • Some of these higher ranked schools won’t give you shit. It’s that competitive

    • Be grateful for whatever you get

  3. Post 9/11 GI Bill

    1. The Post 9/11 GI Bill is one of the greatest gifts bestowed upon service members. Period. It’s absolutely amazing that our society collectively decided to do something of such obvious and beneficial good. Normally we do the stupidest thing possible in our government. The way this bill will and is redefining society lis comparable to the original GI bill after WW2

      1. The amount that the GI Bill will pay is the following

        • Public School - All Tuition and Fee Payments for an in-State Student

        • Private or Foreign School Up to $23,671.94 per academic year National Maximum

        • It’s really important to note that there are some really badass state MBA programs. University of Texas, University of Michigan and Virginia are the most prominent ones. You really get your money’s worth out of elite MBA programs at state schools. That GI bill is gonna pay the whole enchilada baby. And some of these programs are like 60 grand a year. So please take that into consideration

        • Private schools have a booster to the current pay rate above. The Yellow Ribbon program offers matching donations to the GI Bill. School’s have to opt-in, but almost all the good schools do. It’s a godsend for attending private MBA programs, the majority of which. My “ahem” elite MBA would have set me back $160. But thanks to the GI Bill, Yellow Ribbon and a small scholarship from my school I paid exactly zero. It was like just PCS to a way cooler army school and you didn’t have to go back lol

        • You earn the GI Bill at certain rates according to your service. You need to have three years time in service to fully earn 100% of the benefit. This affects different classes of military folk in different ways. For example

          • You enlisted straight out of high school, you have done three years and your contract is up. In this case you have earned 100% of your GI bill

          • You commissioned out of ROTC or West Point and received scholarship money. You have to repay this back in the form of a commissioning adso that is between 4-5 years depending on the commission source. West Point trends higher at 5 years…because they weren’t done fucking us once we graduated. This is very important so pay attention. Once you have finished that 4 or 5 year commitment, is when you start earning the GI bill

            • The rate you earn it at is the following

            • At least 36 months 100%

            • At least 30 continuous days and discharged due to a service connected disability 100%

            • At least 30 months < 36 months 90%

            • At least 24 months < 30 months 80%

            • At least 18 months < 24 months 70%

            • At least 6 months < 18 months 60%

            • At least 90 days < 6 months 50%

  4. Loans

    1. Loans are a complicated issues. You need to understand two things

      1. There are federal and private loans

      2. Each loan type has different rules and restrictions. A good overview of the options is available at NerdWallet. A short snipped I have brought in below

        **Which MBA student loan is right for you?

        • Business school graduates owe more than $66,000 in MBA student debt on average. The right student loan to pay for your MBA will depend on your finances and repayment goals.

          • Generally, max out federal direct unsubsidized loans first. These loans have small fees — roughly 1% — and offer fixed interest rates of 6.08%. Those terms may be close enough to what a private lender would offer you that the additional cost is worth the protections that come with federal loans.

          • Then, look at your career trajectory. If unsubsidized loans won’t cover all your MBA costs, federal grad PLUS loans make sense if you want to work for a nonprofit, are getting an MBA to change careers or simply aren’t sure about your job prospects. Options like Public Service Loan Forgiveness and income-driven plans can help in these instances.

          • Or evaluate your current situation. Shop around for a private MBA loan if you have strong credit and a good sense of your future income. For example, say your employer is sponsoring part of your MBA and you’ll earn a higher salary — and stay with the company for a set number of years — after you get your degree. You may feel OK taking on the risk of private loans to save on interest or overall costs.

          Not sure which situation describes you? Stick with federal loans. You can always refinance MBA loans with a private lender at a lower rate if your plans come into focus later.**


  5. Voc Rehab

    1. This is a complicated program, but can be a lifesend for those who have a rating disability and not a 100% Gi Bill. It essentially is a program that helps veterans with disabilities get re-trained. Check it out here.

  6. Talk with your school, they are experienced in handling this. They will find a way to get you to attend. You can do it.

  7. Your classmates are going to ball out on trips, partying etc. You need to budget for some of that. You don’t want to miss out on a once in a lifetime international trip

  8. Realize that signing bonuses from firms is common. So is the year end bonus. You can quickly pay off the remainder of the loans with that

EXAMPLE COST CALCULATION BETWEEN MBA PROGRAMS

This above DM from a follower is a really interesting question and worth exploring. So what school should he attend? Let’s break it down. Note that I generally define elite recruiting opportunities as MBB consulting or I-Banking. Can also recruit for Big 4 consulting. Also note that this only covers tuition and not additional living costs. 

  1. He has 60% of Post 9/11 GI Bill. Different amount for public v private schools. Direct from VA website -> “For students attending public colleges and universities, the GI Bill covers all tuition and fees at the in-state rate, but it may not have the same reach at a private or for-profit school. The national maximum at such schools will be $24,476.79 for the 2019-2020 school year and generally increases slightly each year.” This means that 60% of GI Bill will cover ~14.7K at a private school. At a public school, it will cover 60% of the in state tuition. That is a BIG DIFFERENCE

  2. Northwestern Kellogg (elite private M7 program ranked in top 10). 2 year total tuition of $148K. GI Bill at 60% only covers 2 year tuition of $28K because it's private. $148K - $28K = $120K remaining 2 year tuition. Pretty hefty. But the median starting salary is a 150K base salary with a 30K signing bonus. Very elite recruiting opportunities tho.

  3. Univ of Michigan Ross MBA (Public Univ ranked ~10-18). 2 year total tuition of $142K. 60% GI Bill covers $85K because it's public. $142K - $85K = $57K 2 year tuition. $57K - $40K Scholarship = $17K remaining 2 year tuition. Median base salary of $140K w/ signing bonus of 30K. Still have elite recruiting opportunities. Ari Gold from Entourage went here

  4. Univ of Texas McCombs (Public univ ranked ~15-20). 2 year total tuition of $112K. 60% GI Bill covers $67K because it's public. $112K - $67K = $45K 2 year tuition. $45K - $15K Scholarship = $30K remaining 2 year tuition. Median base salary of $130K w/ signing bonus of 30K. Very good recruiting opportunities including some elite opportunities

  5. Wash U Olin. private school. Ranked 20-30. Total 2 year tuition cost of 132K. Full scholarship = no tuition cost. Median base starting salary of $118K w/signing bonus of $25K. Will have a hard time recruiting for elite opportunities but will definitely get a decent salary and job