MBA Abroad: The Costing Factor; know how you can manage it best

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MBAUniverse.com News Desk |
April 17, 2015
Cost of pursuing MBA in the United States of America (USA) or United Kingdom (UK) is on the higher side than in places like Singapore and Australia
If you make a plan and budget your finances well and most importantly stick to your plan your study period will be a smooth one

Cost of pursuing MBA in the United States of America (USA) or United Kingdom (UK) is on the higher side than in places like Singapore and Australia. USA is the most expensive MBA destination in terms of tuition fee and living expenses. But the other side of coin is that investing to pursue MBA from USA or UK comes with a huge array of career opportunities, international mobility and creating the right contacts/networking. However, increasing competition sure makes it tough for an MBA aspirant to stand out in these MBA hot spots.

On the other hand, Australia needs low expenditure portfolio but the career prospects after doing MBA at Australia are not as high as in USA. While the cost of education is a bit low, the cost of living is high. Moreover there are limited options for students to work part time unlike in USA where university grants and teaching assistance jobs are available.

Similarly, Singapore and China offer quality MBA in a lesser expensive range. Career prospects are very high here but the programs are mainly focused on Asian markets. You will learn something new every day due to the different cultures and languages. Though Singapore offers easy work permits, study and work regulations in China are a little tough. 

B-schools in Canada offer high quality programmes with work permits for MBA graduates and good job prospects. Canada’s economy is also doing well due to the recent oil boom; however the market is smaller compared to USA. Again, there are only a handful of B-schools in Canada compared to USA and you are left to choose only amongst the few available options.

Each destination has its own pros and cons. An aspirant going to pursue his dream of doing MBA from abroad should investigate every aspect and know what he wants before investing.  The intent of this article is to give you an overview of the expenses incurred while doing MBA abroad and how to manage your finances to help you study without going broke. 

Expenses

Doing an MBA from abroad is undoubtedly more expensive than doing MBA from India. Expenses include tuition fee, food, accommodation, leisure activities, travel etc. Below is given the range of expenses rather than any actual number as tuition fee is subject to change and the living expenses will vary according to your living standards. These fees are for international students, fees are lesser for domestic candidates.

 

MBA Abroad Destination

Tuition Fee per year (INR)

Living Expenses per year (INR)

Program Duration

USA

20-64 lacs

10- 25 lacs

21-24 months

UK

23-65 lacs

7-15 lacs

12-21 months

Canada

20-54 lacs

5-15 lacs

12-24 months

Singapore

29-32 lacs

40k – 4 lacs

10-12 months

China

20-44 lacs

6-10 lacs

14-24 months

Australia

18-40 lacs

7-15 lacs

12-24 months

  
An additional amount of 4000-13000 must be estimated for application fees required during the online application process. Additional fees will be charged for books and supplies for text books and not to forget the GMAT and TOEFL/IELTS examination fees and the air-fares.

How to manage the huge expenses? Big issue

Decision to do an MBA abroad is not taken overnight; hence when you plan to go abroad for your MBA, saving money is the first step. Start saving. Make a good research on all possible resources such as bank loans, non-bank loans and scholarships. Many institutions have separate loan schemes for Indian students. Check the B-school websites for scholarships criteria. If scholarship is of utmost importance to you, make sure you stand out in the competition and evaluate all aspects. Check with the University for Part-time and Teaching Assistance Jobs.

Budgeting Tips

Budgeting in a foreign country is difficult no doubt.  Unseen expenses should also be kept in mind and there may be financial hurdles along the way. If you make a plan and budget your finances well and most importantly stick to your plan your study period will be a smooth one.

Plan out your expenses - Figure out your needs; Housing, Transportation and Food. Divide your expenses into ‘essential’ and ‘non-essential’ items. E.g. your accommodation cost will be essential while going out for a movie will be a non-essential item.

Cheaper options-Look for cheaper options. Check with your university if on-campus accommodation is cheaper or the off-campus housing. Get a student card to avail discounts as this may save you hundreds of dollars.  Various discounts are available for students from movie tickets, museum tickets, lunch and dinner and at some cafes and restaurants etc.

Part-time jobs - Although it is quite difficult to manage a job while studying MBA owing to the rigorous program structure, it may be a good idea to look for one if you are in dire need of financial aid. Check with your university during the initial stages of admission about part time options. Some universities also offer teaching assistantship positions on a part-time basis.

Emergency Savings- It is important to set aside a little amount of money for emergency needs such as health issues, urgent trip to home etc.

You have to stick to your budget. Track your spending and save receipts. Speak to the consultants in the university regarding financial help and they will help you find options that suit your budget.

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MBA Abroad: One step further for Indian students to a world of opportunities

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