The foreign MBA-degree dream is not a new one for Indians. However, the trends in how this degree is funded appear to be changing with the times.
The Graduate Management Admission Council (GMAC) conducted a worldwide survey on the financial mix and payment trends observed from 2009 to 2013 among management students. The survey brings to light how prospective students around the world intend to borrow less and count on greater contributions from parents. The average financing mix varies greatly by citizenship, preferred programme type, study destination and other demographic factors.
Variations in fundingThe survey results also offer examples to demonstrate variations in funding expectations for business school, with additional resources provided for more detailed breakdowns of the financing mix.
From 2009 to 2013, the percentage of prospective students worldwide expecting their parents to provide funds increased from 14 per cent to 20 per cent as the portion they expected to borrow and cover with scholarships or grants both decreased. The popularity of specialised master’s programmes in business, which draw younger students more than regular MBA programmes, may be a contributing factor, but prospective students in a range of programmes expect more parental funding, a release said.
Indian citizensThe document ‘Paying for Business School’ also revealed that Indian citizens considering full-time two-year MBA programmes typically plan to study abroad and traditionally rely on loans to fund more than a third of the cost. From 2009 to 2013, they have expected grants and scholarships to cover less, and they look to their parents to help them make up the difference.
As for the value of an MBA, master’s and other graduate business degrees, 79 per cent of business school alumni from the classes of 1959-2013 worldwide say their expectations for the degree’s return on investment were exceeded or met.
