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Few things in life have a greater payoff than an investment in education. Learn how prospective graduate business school students from around the world plan to pay for their education.
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GRADUATE MANAGEMENT ADMISSION COUNCIL®
Paying for Business SchoolFewer Hesitations, Greater Investment from Parents
Financing Mix, 2009 & 2013
RELEASE DATE: SEPTEMBER 2014
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
“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.”
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
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
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%
94%
94%
Degree essentialfor getting a job
Rate degree goodto outstanding
value
Would do it againknowing what they
know
Source: GMAC Alumni Perspectives Survey, 2014
Value of a Graduate Business Degree
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
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.
18%
21%
22%
29%
45%
48%
13%
28%
26%
32%
51%
53%
No reservations
Economy/job prospects uncertain
Limits time for others
Demands on time/energy
Requires large financial debt
Requires more money thanavailable (cost)
2009
2013
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
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.
Grants & Scholarships
21%
Loans26%Personal
funds23%
Spouse2%
Employer13%
Parents14%
Other1%
Worldwide: More Parental Support
Expected financing, 2009
Grants &
Scholarships
18%
Loans
22%
Personal funds
24%
Spouse2%
Employer12%
Parents
20%
Other2%
Expected financing, 2013
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
From 2009 to 2013, prospective student average financing mix varies greatly by several factors...
Filter by citizenship, study destination, program type, gender, and age.
Trends in the Financing Mix
Accessible at www.gmac.com/prospectivestudents
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
US Citizens, Domestic FT 2-YR MBA
22%
36%
20%
2%
10% 11%
1%
20%
31%
22%
2%
12% 12%2%
Grants Loans Personalfunds
Spouse Employer Parents Other
2009 2013
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.
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
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.
3%
53%
3%
4%
19%
6%
13%
2%
40%
3%
3%
19%
8%
26%
Other
Parents
Employer
Spouse
Personal funds
Loans
Grants/Scholarships
2009 2013
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
29%
36%
16%
2% 3%
13%
1%
25%
35%
15%
2% 3%
19%
2%
Grants Loans Personalfunds
Spouse Employer Parents Other
2009 2013
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.
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013
Indians, FT 2-YR MBA Abroad
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
Canadians, Domestic FT 1-YR MBA
11%
27%
42%
3%
6%
10%
1%
14%
28%
35%
3% 8%12%
1%
Grants Loans Personalfunds
Spouse Employer Parents Other
2009 2013
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.
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
21%
18%
32%
2%
6%
19%1%
Grants17%
Loans19%
Personal funds32%
Spouse 2%
Employer 6%
Parents22%
Other
2%
2009
2013
In 2013, European citizens considering full-time 1-year MBAs expect less of the cost to be covered by grants/scholarships, and moreinvestment from parents to meet costs than those in 2009.
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013
Europeans, Full-Time 1-YR MBA
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
28% 28%
22%
1%
5%
14%
2%
22%
27%24%
2% 6%
18%
1%
Grants Loans Personalfunds
Spouse Employer Parents Other
2009 2013
In 2013, Latin American citizens considering full-time 2-year MBAs programs expected less funding to come from grants/scholarships than their 2009 peers.
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013
Latin Americans, Full-Time 2-YR MBA
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
43%
13%
26%
2% 3%
12%
2%
40%
9%
22%
2% 6%
18%
3%
Grants Loans Personalfunds
Spouse Employer Parents Other
2009 2013
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.
Source: GMAC mba.com Prospective Students Survey, 2009 & 2013
Africans, Full-Time 1-YR MBA Abroad
© 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.
About the SurveyThe 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.
gmac.com | mba.com | gmat.com
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.