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Whenever there is mention of the world’s most prestigious management degree i.e. Master in Business Administration i.e. MBA in the minds of the youth around the world, the first and biggest name that comes to mind is the top universities of America, where studying from is a big dream of every ambitious student. Earning an MBA degree from the world’s number-1 business schools like Harvard, Stanford, Wharton and Columbia in the US not only guarantees a great corporate career but also opens new doors to professional growth at the global level. However, the biggest and main obstacle in the way of fulfilling this golden dream is the huge expenses i.e. tuition fees and the heavy financial burden of living there, about which every student who wants to try his luck in America should be deeply aware. In today’s detailed article, we are going to explain to you in simple language the complete and accurate calculation of the total expenses, tuition fees, living cost and all other necessary charges for pursuing MBA from the top universities of America.
When it comes to pursuing MBA from any top or reputed business school in America, the tuition fee itself is a huge figure which can surprise anyone. The total tuition fee alone for a two-year full-time MBA program at world number-1 institutions like Harvard Business School, Stanford Graduate School of Business or the Wharton School of the University of Pennsylvania can range from around US$80,000 to US$1,20,000 per year. If calculated directly in Indian Rupees, this figure for just two years of tuition fees easily reaches from Rs 75 lakh to Rs 1 crore or even more. This fee only covers the academic curriculum, classroom resources, case study materials and faculty charges, while other university charges and health insurance are added separately, which further stretches the budget.
After tuition fees, the second biggest financial expense that a student faces is the cost of living, eating and meeting his daily needs for two years in expensive cities of America, which is called living cost or cost of living. Living near top universities in metropolitan cities like Boston, San Francisco, New York or Philadelphia can be costly in itself, as apartment rents, local transportation costs, groceries and food are all expensive. The average cost of accommodation and food in America as a student is around 25,000 to 40,000 US dollars per year i.e. around 20 lakh to 35 lakh rupees in Indian currency. This includes shared accommodation, health insurance, books, laptops and other personal expenses, and can increase up to one and a half times more if a student lives with his or her family or partner.
When students prepare the final budget for pursuing MBA in USA, they often include tuition and living cost but ignore many other small and hidden expenses which can cause a big financial blow later on. This first includes the application fees of prestigious universities of America, which ranges from 150 to 250 dollars for each university, and students usually apply to 4 to 5 universities. Apart from this, GMAT or GRE exam fees, coaching and test fees for English proficiency exams like TOEFL or IELTS, US F-1 student visa and service fees, and one-way and return airfare from India to the US are also included. Including all these initial and procedural expenses, it is very important to keep an additional fund of around Rs 3 to 5 lakh with you, so that you do not have to face any kind of financial problem at the last moment.
There is absolutely no need to panic if you see the total expenditure of more than Rs 1 crore from any top school in America, because huge scholarship and fellowship options are always open in these universities for the deserving and brilliant students from all over the world. Universities like Harvard and Stanford follow a need-blind admission process, which means that if you are selected, the university offers you huge scholarships or grants without asking for your financial status. Additionally, Indian students can easily avail education loans worth crores of rupees through State Bank of India, Bank of Baroda or global lender portals like Credit Karma and AGW without any heavy collateral or mortgage of property. The huge stipend you get during your summer internship and the annual package of millions of dollars you get in top companies after your studies, fully recovers this initial investment in a few years, making this deal very beneficial in the long run.