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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


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


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


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



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


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.



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



29%

36%

16%

2% 3%

13%

1%

25%

35%

15%

2% 3%

19%

2%



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.


Indians, FT 2-YR MBA Abroad


Canadians, Domestic FT 1-YR MBA

11%

27%

42%

3%

6%

10%

1%

14%

28%

35%

3% 8%12%

1%



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.



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.


Europeans, Full-Time 1-YR MBA


28% 28%

22%

1%

5%

14%

2%

22%

27%24%

2% 6%

18%

1%



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.


Latin Americans, Full-Time 2-YR MBA


43%

13%

26%

2% 3%

12%

2%

40%

9%

22%

2% 6%

18%

3%



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.


Africans, Full-Time 1-YR MBA Abroad


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.

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