Financial Aid Basics
Financial aid is any financial assistance that helps the students pay for their tuition fees or living expenses. Most Business Schools offer some kind of financial aid based on the merit of the student.
The amount of financial aid offered by the college varies based on the subject you are studying, your academic credentials and your GMAT score.
Most Business Schools offer financial aid to international students on merit rather than need.
Tip: You must apply to schools for financial aid, when you submit your general application. It is advisable to apply early if you have to avail of financial aid. Usually the deadlines for applications which require financial aid are earlier.
For example, students applying for the Fall semester (August) typically are required to submit their applications by end of February if they have to be considered for financial aid from the Business School.
Check the individual school's website for financial aid details.
Types of Financial Aid
Assistantship
Assistantship is done on the college campus and students receive a stipend that helps them cover their living expenses. Typically they would work for a professor or some department. The assistantship could be a Teaching assistantship or a research assistantship. University application brochures provide details on assistantships.
In a teaching assistantship you may work on student mark lists, grading, proctoring of exams etc.
In a research assistantship you may help the department or professors in their academic research activities.
In most universities teaching assistantships are common as usually there is a large pool of undergraduate students.
In some cases you may get assistantship right from the first semester, while in some cases you may get it from the next semester. Sometimes some schools insist that you take the Test of Spoken English (TSE) before you get an assistantship.
Scholarship or Fellowship
This is grant that is given outright by the University or school based on the academic merit of the student and performance. Only star academic performers usually get this grant. A scholarship or fellowship may cover the entire living of the student or may be partial.
Tuition Waiver
A tuition waiver may be full or partial. A full tuition waiver implies that the student does not have to pay any tuition fees. A partial waiver means that the student will have to pay some part of the fees. Usually administrative and other fees payable to the university are not included in the waiver. Usually a tuition waiver is awarded along with a teaching/research assistantship.
Tip: You may not get a Financial Aid while applying to the university/school. However most international students manage to get some form of financial aid from their second semesters. Hence if you have fund your expenses for one year or so, it should be enough fro you to take the decision of going to the US for your MBA degree.
Useful Financial Aid resources
Financial Aid for International Students:
NAFSA Association of International Educators
Refer to our MBA Student Loans section for more details about financing your MBA degree.
US Expense Estimator
Average US expenses
  • Tuition Fees
    US universities may be private or public. Public universities are supported by the State governments. Universities have a out of state rate and an in state rate of tuition fees. Students who are from the same state qualify for the in state rates. Other students will have to pay tuition at an out-of-state rate. Thus international student will have to pay at an out of state rate, which is higher.

    Tuition fees charged by a college does not necessarily reflect on the school reputation or teaching quality.

    Refer to the following table:
Average tuition rates in Business Schools
University Type Tuition Fees
(annual in U.S. Dollars)
Private Institutions (High rate)$20,000
Private Institutions (Low rate)$14,000
State Institutions (High rate)$14,000
State Institutions (Low rate)$7,000

The tuition fee is different for different universities and varies widely with courses. It can vary from as low as $5,000 a year for state universities to as much as $30,000 per annum for some private universities. For more specific details, please contact the universities.
  • Living Expenses
    A student can manage with $10,000 per year as his/her living expenses. It also depends on the lifestyle of the student. Expenses will be more if the student needs to buy a car.

    Usually 3 to 4 students share an apartment and do car pooling due to which they are able to reduce their living expenses like utility bills, gas bills, groceries etc. Please note that a car may be a necessity on some parts of USA although public transport is available in big cities and towns. Check with your college about the living expenses, public transport, student accommodation etc. In most cases it is expensive to live on campus and students tend to rent accommodation outside the college campus.
Average Living expenses
Rent $400 per month - $800 (depends on your location)
Food$100 per month - $200
Utilities$100 per month
Phone$100 per month
Other$200 per month
Insurance
It is advisable for international students to take insurance. Your college can provide you more details on various insurance options available to students.