The cost of doing an MBA is the next big concern of aspirants once they have qualified any one of the Management entrance tests and have received a call from a B-School. For instance, an aspirant have got a call from top MBA College, however, the fee structure is too high that doesn’t fit into his budget. In such a case, what should the aspirant do? Let’s find about the planning tips that every student must follow to manage his/her college fee and pursue MBA without any type of hassle.
1. Costs of applications forms
Before you venture into your dream Business school, you need to shell out another significant chunk of your money into the application forms for applying in various colleges. It can eat your budget like anything. Apart from applying for CAT exam that costs you around Rs. 1700, you need to shell out for the b-schools that you are aiming for. Any B-school application form will cost you around Rs.1500-2500. And if you are applying to 10 b-schools then you are smart enough to calculate its cost.
2. Tuition Fee (for Residential programme)
Major cost of pursuing an MBA degree goes into the Tuition fee. If you are doing your MBA under the two year residential programme then it will cost you roughly around 10-15 lakhs. While b-schools participating in GMAT have got a bit higher fee structure and prefer candidates with work experience. One can look for various options to finance the MBA, for instance some b-schools offer scholarships, and almost all Indian banks also offer Education loan that too at lower interest rate with a good moratorium period.
3. Coaching fee
Ever since there is a craze amongst students and working professionals for doing an MBA, plenty of b-schools have mushroomed in the nook and corner of Metros, Tier-1 and Tier-2 cities and even in rural parts of India. But if you want comprehensive preparation and target premium b-school then any good coaching institute will charge somewhere between 35-40 thousands of INR. But hang on! You need to add another good 20-25 thousand for the preparation of Personal Interview and essay writing for sailing through the last hurdle.
4. What about the Opportunity Cost!!
Before we forget to subsume this factor, let’s add this cost to our budget estimates as there is a propensity amongst all of us to neglect this crucial factor. Opportunity cost includes your foregone salary that you could have earned while utilizing this time as a working professional. Not only this, there is an n number of opportunity cost factor and the list is endless like future cost of any investment that you could have invested (any asset, various securities like Mutual Fund, Shares, bonds and Debentures etc.)
The Bottom line
As we have put up the real picture of the various costs that revolves around earning an MBA degree, you need to be very sure of pursuing this degree. Investment in this degree is hefty but returns are also fruitful. In order to manage the cost of pursuing MBA, access to good financial and emotional support from your family is also a prerequisite. Last but not the least you need to be headstrong with your aims and perseverance as an MBA from an A-Category B-school can easily overshadow the cost of doing it as its ROI is always excellent.
Wishing you best of luck for your MBA!!
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