People use a career center at the Brooklyn Public Library to look for job opportunities or career education courses in New York City. See more college pictures. When the economy tanks, people go to business school. Why is this? MBA programs offer what people most want in times of economic distress — good paying jobs for most graduates. If you’re already in the working world, there’s also the possibility of lost income if you take time off from your career to pursue your studies, though some companies provide their workers with employer-based education assistance to help them get ahead. Before you decide whether an MBA is right for you, consider all the costs: out-of-pocket charges such as tuition, books and living expenses; income you give up by going back to school; and long-term costs including repayment of loans and the interest accrued on them. Fortunately, you don’t have to come up with all the cash yourself. Student loans, grants, scholarships and work-study programs are available to help all undergraduate and graduate students make their tuition payments. In addition, there are special categories of loans, scholarships and grants aimed directly at graduate school and business school students, if you know where to look. In the following pages, we’ll take a look at what types of financial aid are available for business school students, their advantages and disadvantages, and how to find them. First, let’s look at the traditional methods of paying for higher education tuition and expenses, if you don’t have the money in hand to cover all your costs. Borrowing the money to pay for tuition is a common route, and there are many options available in student loans. Federal loans usually provide the best interest rates, and federal loan programs such as Stafford and Grad PLUS loans are the workhorses of the student loan industry. Private lenders also offer student loans, often at a higher or variable interest rate compared with federal loans. However, unlike most federal loans, which are based on need, private loans are granted based on a student’s credit worthiness. Grants are funds directed toward students that do not have to be repaid. Grants are given out primarily on a need basis, and can come from the federal or state government, colleges and universities, and public and private organizations. Many grants target particular types of students or students studying in particular fields. Scholarships are also free money, but they tend to be merit-based. The Federal Work-Study program provides funds to schools to help finance the cost of part-time jobs for students within the university or college. The first stop for anybody looking for financial aid in the United States is the federal government’s FAFSA Web site. Completing the FAFSA is a requirement for receiving any federal aid, along with most state and college aid as well. The entire application can be completed online. You can apply for a personal identification number at the FAFSA Web site that allows you to electronically sign in when you’re putting together your application. If you’re married, you’ll be asked to provide financial information about your spouse. If you’re a male age 25 or younger, you must be registered for selective service. If you’re not, you can do so through the FAFSA. Your federal student aid eligibility may be affected by previous drug convictions. But even if you’re not eligible, completing the FAFSA application may qualify you for other types of student aid. Roughly four weeks after you complete the FAFSA, your should receive a Student Aid Report. Review this and make any necessary changes, then return it. The schools you list on your report will also receive copies. You will receive an award letter from the school you hope to attend that outlines any financial aid they can offer, based on your eligibility. After those steps, you could still have a gap in your financial aid package that you need to fill — particularly one related to business school. Grants, scholarships, private loans and work-study programs can help make up the difference. Nonprofit organizations and for-profit companies alike offer free search tools to identify forms of aid for which you may qualify, such as FinAid! If you’re going for that MBA, there are some special forms of financial assistance that can help fill in the holes that a typical award letter would leave out. First, in addition to other federal student loans, you can apply for the federal Graduate PLUS loan program. These loans are meant to supplement Stafford loans, but they have higher interest rates. These loans have variable interest rates based on credit-worthiness. Scholarship and grant opportunities geared toward business school students can help make up the difference as well. Prospective Small Business Management school students can even find financial help with preparing for or taking the GMAT exam to get into business school. For lots more information on financial aid and business school, see the links on the next page. What’s the difference between subsidized and unsubsidized student loans? Damast, Alison. «Loan Crisis Hits the MBA World.» Business Week. Florida Department of Education. Gerdes, Lindsey. «Return on Investment: Public Business Schools Rock.» Business Week. Graduate Management Admission Council. Graduate Management Admissions Council. Graduate Management Admissions Council. Lavelle, Louis. «Business School Costs on the Rise.» Business Week. U.S. Department of Education.