Our site uses cookies to help us deliver our services and for you to enjoy the best possible experience. By using our website and services, you agree to our use of cookies. For more information please read our Cookie Policy.
Katie Schenk - February 06, 2020
International MBA budget basics
Extra international MBA expenses
Costs after your on-campus MBA experience
Estimated international MBA budgets in dollars, pounds and euros
Whether you’re busy studying for your GMAT or waiting on your admits, there’s something else you should be doing too. Now is perhaps the best time to start putting your b-school budget into order. You'll need it to apply for a loan and to secure your international study visa.
Your MBA budget needs to cover a lot more than you might originally suspect, so getting to grips with what you have and what you will need is one of the first steps on your MBA journey. Start by gathering budget estimates in these areas.
You know what goes in this category, don’t you? It is fairly straightforward, beginning with tuition for the duration of your studies.
Business schools are wonderfully upfront with these costs – and a quick call to the financial aid office of any school should give you an idea of expected annual increases.
The number of on-campus and programme-sponsored off-campus activities during your time at business school will blow your mind. Ask any current MBA candidate; they’ve often got two or three activities tentatively booked for the same time... nearly every night of the week.
And that’s before considering participation in the clubs that they’re members of during their time on campus.
On top of this, there are also excursions and additional class seminars to consider. Forgoing some is part and parcel of the MBA experience; missing all of them would be a shame.
When trying to determine a budget for these activities, get in touch with students at the most expensive school on your application list. Ring up the clubs, financial aid offices, and if possible, any grads from your home country.
And, you shouldn't forget about weekend excursions, holiday ski trips, and team bonding done over dinner or drinks at the local. These add up faster than you might imagine.
You’re going to get a job that starts within a month of graduation for double your current salary, right?
We certainly hope so, but you need to be a little more realistic than that.
Budget for six months of unemployment while you deliberate the different offers and paths available to you. If you don’t need that money; great. You can sink it into loan repayment once your first pay check comes through. Not budgeting for this time is an oversight you don’t want to make – especially if you’ve already exhausted all your funding options.
You’ll also need to factor the cost of interest on any student loans you take for your education - and although you’ll only begin think seriously about that when you look for loans and compile your post-graduation monthly budgets, it does technically fall into your MBA budget.
Some programmes actually include estimates in their Cost of Attendance (CoA) figures, though these may only apply to domestic students (typically, US citizens attending US universities). As you budget for your post-graduation life, be sure to sink in some estimates of your own based on the loans you’re able to secure.
While universities release formal costs of attendance (CoA), most students should take these as minimum budgetary figures.
On the plus side, the official CoA is what immigration officials expect you to cover to secure your visa.
On the other hand, because the official costs are estimates only, they’re unrealistic for most MBA candidates. Sure, you aren’t forced to join your classmates on evenings out, but it’s one of the primary ways students develop those all important networks that will propel them through the rest of their lives.
It’s also critical to note that there are vast differences in expenses, even when comparing two universities in the same city – and, of course, it’s almost impossible develop just one budget that fits every programme you may apply (and be accepted to), as shown here.
GMAT exam prep
$1429
Books and supplies
$5100
Health insurance and fees
$9812
Rent and utilities
$37,173
Personal expenses (inc groceries and transportation)
$42,410
Socialising and travel
$24,000
Return flights
$1300
F-1 student visa fee
$160
Estimated total budget
$274,614
GMAT exam prep
£1100
Personal expenses (inc groceries and transportation for 15 months)
£36,750
Socialising
£7200
Return flights
£475
Estimated total budget
£158,610
Books
€300
Accommodation and utilities (10 months)
€10,000
Meals
€6500
Local transport
€660
Field trips
€2000
Travel for exchange and job search
€2000
Miscellaneous
€1500
Telephone
€400
Estimated total budget
€132,305
For reference, the visa and flight costs are variable; we’ve used these examples to uncover estimate costs:
The visa fees only include the application cost; travel to and from interviews, any postage, printing, parking, and more are completely excluded. And, of course, flights are basic estimates and don’t include extra baggage, date changes, or ground transport to or from your home airport.
As you can imagine, these costs add up quickly – and it might be worth your time to tentatively plan through a year (including the number of clubs you might like to join) before realistically compiling your budget.
And then keeping yourself on budget is totally your responsibility during your studies.
Make it easy on yourself by making it as realistic as possible. If you need to reduce your budget during the loan and financing phase, you can - as long as you've given yourself the wiggle room you need. Fortunately, an early start on your MBA preparations and round one applications will ensure you’ve paved the way for success. And, it gives you plenty of time to apply for those loans and scholarships to put your budget into action.
Need a student loan for your international MBA?
Prodigy Finance provides collateral-free loans to international masters students. Find out what offer you can get.
Prodigy Finance Ltd is authorised and regulated by the Financial Conduct Authority.
Post updated for accuracy and freshness on February 6, 2020. Originally published on December 9, 2016.
Kavitha from Prodigy Finance - January 20, 2021
Planning to study abroad? A masters degree can be expensive, but scholarships can help you reduce... Continue reading
Prodigy Finance Ambassador Vishnu Chundi - October 30, 2020
Vishnu Chundi, co-Founder and CEO at AssetVault, shares his MBA journey and how with good... Continue reading
Prodigy Finance Ambassador Vishnu Chundi - October 20, 2020
Vishnu Chundi, co-Founder and CEO at AssetVault, shares his MBA journey. From starting his own... Continue reading
Prodigy Finance Ambassador Riona Rooplal - September 29, 2020
Ok, so you’ve made the big commitment and know you want to become an international student. But... Continue reading
© Prodigy Finance Limited 2007 - 2021. All Rights Reserved. Prodigy Finance Limited is incorporated in the United Kingdom (Company Number 05912562) with its registered address at Palladium House 1-4 Argyll Street, London, W1F 7LD and registered with the Office of the Information Commissioner (Reg. No. Z9851854). Prodigy Finance is authorised and regulated by the Financial Conduct Authority (firm registration number 709641) for certain consumer credit activities and for investment activities for investors who have agreed to its terms. Prodigy Finance loans are offered to eligible borrowers and these loans are governed by English law.