Paying for Business School

Paying for Business School
Fewer Hesitations, Greater Investment from Parents
Financing Mix, 2009 & 2013
RELEASE DATE: SEPTEMBER 2014
GRADUATE MANAGEMENT ADMISSION COUNCIL®

“Few things in life have a greater payoff than an
investment in education in terms of the
opportunity it provides to acquire skills, build a
career, boost income, and fulfill personal goals.”
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
Learn more at mba.com
Quote from Paying for Business School, a GMAC Data-to-Go (September 2014)
Download the brief at gmac.com/datatogo

Value of a Graduate Business Degree
94%
94%
Would do it again
knowing what they
know
Rate degree good
to outstanding
value
MBA, master’s and other
graduate business degrees
hold their value over time.
79% 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.
In addition, alumni confirmed:
83%
Degree essential
for getting a job
Source: GMAC Alumni Perspectives Survey, 2014

Fewer Hesitations About B-School
Fewer of those considering management education in 2013 had
reservations about pursuing business school compared with peers
in 2009, yet cost and potential debt remain top concerns.
22%
21%
18%
29%
48%
45%
53%
51%
32%
26%
28%
13%
Requires more money than
available (cost)
Requires large financial debt
Demands on time/energy
Limits time for others
Economy/job prospects uncertain
No reservations
2009
2013
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013

Worldwide: More Parental Support
Since the height of the Great Recession in 2009, prospects around
the world intend to borrow less and rely on parents to contribute
more toward their educational investment.
Parents
20%
Employer
Grants &
Scholarships
21%
Loans
Parents
14%
Personal 26%
funds
23%
Spouse
2%
Employer
13%
Other
1%
Expected
financing,
2009
Grants &
Scholarships
18%
Loans
22%
Personal
funds
24%
Spouse
2%
12%
Other
2%
Expected
financing,
2013

Trends in the Financing Mix
From 2009 to 2013,
prospective student
average financing mix
varies greatly by several
factors...
Filter by citizenship,
study destination,
program type,
gender, and age.
Accessible at www.gmac.com/prospectivestudents

US Citizens, Domestic FT 2-YR MBA
US citizens considering full-time 2-year MBA programs in the US in
2013 expected to tap personal funds, employers and parents for
more of the cost, relying less on loans than in 2009.
2009 2013
22%
36%
20%
2%
10% 11%
1%
20%
31%
22%
2%
12% 12%
2%
Grants Loans Personal
funds
Spouse Employer Parents Other

Chinese Citizens, Master of Finance Abroad
In 2013, Chinese citizens considering master of finance programs
abroad expected grants and scholarships to cover less of the cost
than their 2009 peers, and for parents to contribute more toward
their educational investment to make up the difference.
4%
3%
53%
3%
19%
6%
13%
3%
2%
40%
3%
19%
8%
26%
Grants/Scholarships
Loans
Personal funds
Spouse
Employer
Parents
Other
2009 2013

Indians, FT 2-YR MBA Abroad
Indian citizens considering full-time 2-year MBA programs abroad in
2013 depended heavily on loans but expected support from parents to
make up for a loss in grants or scholarships as compared with 2009.
2009 2013
29%
36%
16%
2% 3%
13%
1%
25%
35%
15%
2% 3%
19%
2%
funds

Canadians, Domestic FT 1-YR MBA
In 2013, Canadian citizens considering full-time 1-year MBA
programs in Canada expected to pay less of the cost from personal
funds than their 2009 peers.
2009 2013
11%
27%
42%
3%
6%
10%
1%
14%
28%
35%
3% 8%
12%
1%
funds

Europeans, Full-Time 1-YR MBA
In 2013, European citizens considering full-time 1-year MBAs expect
less of the cost to be covered by grants/scholarships, and more
investment from parents to meet costs than those in 2009.
21%
18%
32%
6%
2%
19%
1%
Grants
17%
Loans
19%
Personal funds
32%
Employer
Spouse
2%
6%
Parents
22%
Other
2%
2009
2013

Latin Americans, Full-Time 2-YR MBA
In 2013, Latin American citizens considering full-time 2-year MBAs
programs expected less funding to come from grants/scholarships than
their 2009 peers.
2009 2013
28% 28%
22%
1%
5%
14%
2%
22%
27%
24%
2% 6%
18%
1%
funds

Africans, Full-Time 1-YR MBA Abroad
African citizens considering full-time 1-year MBAs sought to study
abroad in 2013, and expect grants/scholarships to pay for a large
portion of the funding. Parents are expected to contribute a greater
share toward meeting costs in 2013 than in 2009.
2009 2013
43%
13%
26%
2% 3%
12%
2%
40%
9%
22%
2% 6%
18%
3%
funds

About the Survey
The mba.com Prospective Students Survey looks at the
intentions, motivations, and decision-making process of
those considering graduate management education
around the world.
Each year, more than 12,000 prospective students are
surveyed three months after they have registered on
mba.com, the global portal for graduate management
education run by the Graduate Management Admission
Council, the nonprofit organization that conducts the GMAT
exam on behalf of graduate business and management
programs worldwide. For a copy of the mba.com Prospective
Students Survey report and access to a funding interactive
report, go to gmac.com/prospectivestudents.
For more information on the Value of the MBA in 3D, go to
gmac.com/newscenter.

GRADUATE MANAGEMENT ADMISSION COUNCIL®
Connecting Talent and Aspiration with Opportunity
The Graduate Management Admission Council® is the
not-for profit association of the world’s leading business
schools and the publisher of the GMAT® exam, the most
widely used and respected admissions exam for graduate
business and management programs around the world.
gmac.com | mba.com | gmat.com

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