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The costs of an MBA vary immensely with a few providers offering MBAs at under £6,000 and
others in the £25,000 - £40,000 bracket. Our guestimate is that the median cost of tuition
for an MBA in the UK in 2001 is around £10,000.
Most students will fund this through savings, loans and employer sponsorship. There are two
main loan schemes operating in the UK, the AMBA Loan Scheme and Career Development Loans (CDL).
Of these two the AMBA scheme is most useful for MBA students, but the CDL should also be
looked at. Another issue is the tax system through which, depending on the format of your MBA,
it may be possible to reclaim some of the costs of your MBA.
The AMBA loan scheme
The AMBA (Association of MBAs) loan scheme asks that candidates meet the following criteria:
They must be permanent UK residents for tax purposes.
They must have a place on an accredited MBA programme.
They must have at least two years relevant work experience at a level of
responsibility appropriate for study at masters level in Business Administration.
They must have a degree or equivalent professional qualification. Non-graduates must
have at least five years' relevant work experience.
The amount that you can borrow under the MBA scheme is:
Full-time students can borrow two thirds of their pre-course gross annual salary
plus tuition fees, less any grants, for each year of study. Part-time students can
borrow tuition fees plus study equipment. Distance learners can borrow course fees
and study equipment up to a maximum of £10,000. Students are normally expected to be
able to cover 20% of the course fees from sources other than the MBA Loan.
More detailed information on an MBA Loan is available on request by ringing the free
Helpline number: 0800 200 400.
The scheme operates through Natwest and Barclays Banks. For full and part time courses
the loan does not have to be repayed until after the course has finished, for distance
learning courses loan repayment starts one month after drawing the loan. Interest rates are
generally good, but check these with the banks.
You can link to the AMBA site here - Association of MBAs loan information
Career Development Loans
Another option is a Career Development Loan. To qualify you "must live, or intend to train,
in the UK and you must show that you are planning to use that training for work in the
UK or elsewhere in the EU".
CDLs are available via four banks Clydesdale Bank, Barclays Bank, The Royal Bank of
Scotland and The Co-operative Bank. The Scheme is operated in partnership with the
Department for Education and Employment. You can borrow up to £8,000, plus the costs of
books, materials and other course expenses (figures for 2000). Details are available from the participating
banks, all of which produce their own leaflets. You can also write to:
Career Development Loans
Freepost
Newcastle upon Tyne
NE85 1BR
Scholarships, Bursaries, etc.
There aren't many of these and they're not easy to get, and often they have quite restrictive
qualifying criteria. However there are a number on offer to UK residents. More details on
these can be found at
UK MBA & BUSINESS SCHOOL SCHOLARSHIPS
UK Tax System
As we currently understand the tax system, tax breaks are only available for full time MBA
students who are 30 or over. In this case the cost can be
set against the tax bill. This is an area and we would advise you to contact someone
who will have up to date knowledge of any reliefs available.
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