Selecting and applying for an MBA is a major time-consuming activity, not to mention finding sources to fund your education! Since you`ll need to bear all costs upfront, planning and budgeting your MBA needs some serious thought.

The major cost component is the tuition. This can range anywhere between USD 10,000 and USD 70,000 - depending on the type of MBA and obviously the name and reputation of the MBA school and the quality they offer. Don`t expect to be getting much quality for the very low-cost MBA`s (often long-distance as well) - the cost of your MBA is often a good indication for the quality you get and its value and regard amongst future employers. Foreign students often find themselves having to pay higher fees than resident students as well. Apart from the tuition, you need to plan other academic costs such as textbooks, membership fees to associations, costs of extracurricular activities etc. Include your living costs in your planning as well. Obviously they depend on your personal habits, and also your situation (i.e. medical costs, flight costs if you are doing a foreign MBA etc). What most people also forget to include is your opportunity costs: taking a (fulltime) year off work or prolonging your job means that you will be cutting off a years income. However, the benefit of MBA programs (in terms of higher salary upon graduating) usually outweigh these costs.

The big question is of course how to finance your MBA. Some people are fortunate to have their employer cover the fee - usually in exchange for the student remaining with the firm for at least a few more years. Many students however need to bear the costs themselves, whereby it is wise to seek several potential sources of funding.

Potential sources include:

The business school itself: many schools offer their own scholarship scheme, for which you would need to apply. The scholarships are rewarded to the best applications, or in some cases are only open to students from certain backgrounds, professions, ethnic groups etc. Make sure to check out your prospective MBA school`s website to find out more about their scholarship programs, or contact them for more information. Several schools offer assistantships whereby students work on-campus for a professor in exchange for a reduction of the tuition. Again, this depends on the school and requires necessary research from your side. Finally, schools can give loans on favorable conditions.

Scholarships are often given by governments, companies, charities and other institutions. Again, these can be dependent on several conditions (for example having to return to your home country to work upon graduating), and differ in the amount you get rewarded as well. The scholarship either finances a portion or the entire MBA tuition, and generally you won`t need to repay the fund. Keep in mind that the application procedure is very competitive.

Loans are another way to finance your MBA. Many MBA schools have agreements with banks to offer you competitive loans. Obviously you`ll need to repay these loans, however MBA loans for students tend to have lower interest rates or more favorable repayment schemes. Other sources of loans can also be friends and family.