9 Tips For Funding Your Way Through Business School

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If you’re headed towards business school, you already know it can be expensive. The Sallie Mae also just announced that they will no longer give private loans to students who have low (below-prime) credit scores. These days, with credit cards being sent to dogs (really), it’s not hard to fall to the temptation of easy credit at some point and then find negative marks on your credit report. You’ll have to rebuild your credit, but what do you do in the meantime, especially if you’re already in school or have been accepted?

Here are some tips for alternate ways to fund your business school degree that won’t leave you scared of debt when you graduate.

1. Loan from family. Money from family/ friends is often easier to gain than from other sources. The typical downside is that unresolved money issues often divide families. You could make things more official by having loan papers drafted, which include a clause that you pay some sort of percentage return. So your loaners get something in return for their investment in you. On the other hand, if you’re undisciplined in paying off debt, this is a bad idea. So, then, is going to business school.
2. Awards. Many schools offer awards to students with top marks. Check your college’s website for awards, scholarships, grants, etc., then check with your college counsellor. Don’t forget that in the United States, there often really obscure grants/ scholarships that have the oddest acceptance criteria, but which you might qualify for. The downside is trying to find such awards.
3. Government or military assistance. This falls into a vein similar to awards, but funding comes from the government or the military, rather than schools or private organizations. The downside is that to qualify, you often have to be in a “minority” group, such as a veteran, disabled, single parent, etc.
4. Work part-time. Many students have worked their way through college. It’s quite a common practice. But if your marks are high, you might even land a department job as an assistant to a professor. This does not always pay more than some outside job, but it’s very good to have on your resume. The downside is that some departments only let full-time students work 10-20 hours. You have to weigh out the pros and cons.
5. Tutor other students. If you don’t qualify to work as an assistant in college but have the chops, tutor students in lower years than yourself. You can offer them the value of your recent experience in specific courses. The downside is that tutoring sessions could turn into “yeah, I had that crazy professor” sessions.
6. Employer assistance. If you’re at the MBA level, some schools actually require that you have employer sponsorship. Usually that simply means they’re ensuring you’ll have a job with them while you’re in business school. Occasionally, larger companies might even pay part or all of your school fees, depending on what kind of job you have. The downside is that you’re “bound” to them during that time.
7. Start a business. Considering running your own business while still in school. It could be offline, but online businesses often require a minimum of capital to startup. The downside is that this is less reliable than working for someone else.
8. Start a business blog. A blog about some facet of business might not make you any money immediately, but it might bring in a little extra revenue. The downside is that you have to be careful not to regurgitate the theory you’re learning in business school without adding practical advice.
9. Investments. If you’re interested in business, you’re likely interested in the stock market - or will be. Let’s say you’ve saved a bit of money through any of the above means. As a business school student, you’ll do a lot of research. It’s likely you’ll come across news that’ll help you in the stock market. If you’re careful and stay away from penny stocks, and develop your market savvy in a couple of niches, you might be able to leverage in this into a small portfolio of stocks that you flip every 3-4 months to help pay your school fees. The downside is that you have to stay on top of the market, and it is possible to lose your investment if the market crashes. Of course, given the current state of the economy in the U.S., this should probably be amongst your last choices.