rsm - financing your mba jan2010
TRANSCRIPT
ROTTERDAM SCHOOL OF MANAGEMENTERASMUS UNIVERSITY
FINANCING YOUR MBA
RSM’s MBA Programmes – International Full-time MBA (MBA), Executive MBA
(EMBA) and Global Executive OneMBA programmes – are designed for people who
are looking to become successful and highly-skilled management professionals.
If you wish to expand your international business expertise and experience with
effective, globally recognised management training; if you are willing to implement the
most cutting edge business knowledge into your business practices; if you are ready
to become an agent of growth and renewal, then these are the programmes for you.
Structured to enable you to rise to new business and academic challenges the RSM’s
full-time MBA, part-time EMBA and Global Executive OneMBA programmes are
intense, demanding and rigorous.
As well as acquiring the latest business knowledge, your best skills will be brought
to the fore, while those you never knew you had will be identified and developed as
we guide you towards truly fulfilling your potential. RSM is one of the most dynamic,
reputable and successful business schools in the world and our focus is on you.
FINANCING YOUR MBA - Introduction
Making the decision to embark on MBA has already cost you time and effort because
of the research required to find the programme that is a good fit for you, and where
you fit the programme best. Parallel to this decision making is the need to take into
consideration how you will finance your studies, but the news is good. Dave Wilson,
president and CEO of GMAC recently said “Going to business school is one of the best
ways to improve your marketability and expand your options anytime – but especially
in this challenging economic climate, …. people recognise the value of investing in
an MBA. The ROI on an MBA continues to be strong."
An RSM MBA results in a lifetime of benefits, both professionally and personally.
However, as you are no doubt aware, an MBA is a serious commitment of time and
money and this investment needs to be considered carefully.
At RSM we understand that the research into financing your MBA may be just as
important as deciding which school to apply to and for that reason have a dedicated
Financial Aid Office that supports students in all programmes with scholarships, loans
and further financial aid counselling. Clearly we are not in a position to assist all
students finance their studies for 100%, but we are willing and able to advise on
different kinds of financing opportunities and help put students in touch with
particular organisations that can assist.
Furthermore, at RSM, being as aware as we are of the investments students make,
the resources needed and the challenges involved in joining a top business school,
the Financial Aid Office continually works to provide new opportunities for students
to take advantage of.
ROTTERDAM SCHOOL OF MANAGEMENT, ERASMUS UNIVERSITY:
THE PLACE FOR YOU
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At the RSM approximately 60% of participants receive
company sponsorship of some kind. Although these are
predominantly the EMBA and OneMBA participants,
full-time MBA students are known to have company
sponsorship, so this is an alternative that should be
investigated by all applicants. This is an impressively high
level of company commitment which is due to the simple
fact that sponsorship of managers with high potential is
still proving to make good business sense.
In this brochure we are happy to give you a summarised
overview of some of the alternatives that may be open to
you to assist you in financing your MBA, and hopefully you
will find some ideas that will inspire you to apply for aid
you may not have considered before.
COMPANY SPONSORSHIP
As already stated, this option is generally used by
participants in executive programmes who continue
their full-time employment while they study. However,
students interested in the 12-month full-time MBA
Programme who may wish to continue with their current
employer after graduation should not dismiss this as a
possibility for funding.
The different benefits that organisations can gain by
giving sponsorship to MBA students are innumerable.
Some of the possible advantages are outlined below.
Sponsorship provides employers strategic analysis
tools generally increasing the capacity for long term
perspective within the organisation.
All the MBA courses use illustrative examples from
all sectors of the economy, meaning the MBA
Sponsor ship will supply the employees, as well as the
whole organisation, with a broad base of knowledge.
The MBA Programme will provide students with the
opportunity to become a part of an international
alumni network, fostering valuable contacts for the
future, not only for the individual but also for their
organisation.
The MBA Programme is made up of a curriculum of
teaching materials that contain well known theories
and concepts and also the latest international
research; these will all, over time, be fed back into
the company.
In return for (financial) sponsorship participants usually
agree to stay with their companies for an agreed period
of time. Most participants sign loyalty contracts of
between 1 to 4 years after completion of the
programme. Research by the Graduate Management
Admissions Council shows that “On average, it takes
17 months for a company to gain its return on the
investment it made in reimbursing or sponsoring an
employee in an MBA program.”
SUPPORTING HIGH POTENTIAL
There are many ways in which a company sponsors its
managers. The most obvious is financial in the form of
tuition fees and expenses for travel and accommodation.
Companies also support their employees by providing
the opportunity for participants to put their newly
acquired business knowledge and managerial skills
FINANCIAL ALTERNATIVES
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into practice through targeted company projects.
Clearly, another form of sponsorship and support
for MBA participants is time.
For a company sponsoring a participant for the Inter -
national Full-time MBA Programme it is clear that the
sponsorship in time will consist of a year’s study leave.
For the EMBA, contributions in terms of time may
consist of two Friday afternoons per month on class
weekends and the annual international immersion week.
Time sponsorship for the OneMBA Programme should
include part or all of the regional and/or global
residencies. Additionally, your employer may offer you
a pre-determined number of study days.
Business cases have been proposed to help you organise
your arguments for sponsorship before approaching your
company.
These can be downloaded from the RSM website
www.rsm.nl/mba.
SELF FINANCING
An alternative to sponsorship is self-financing.
Fortunately, tax breaks for executive-level studies are
advantageous in the Netherlands. This means doing your
studies within the Netherlands may be financially easier
than in many other countries.
With a little research and planning, low-interest loans can
be negotiated from banks. Furthermore, the freedom that
comes from not having to sign a loyalty contract may mean
a great deal to many participants.
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The wealth of knowledge and experience that Berend ten Wolde has gained through
his Executive MBA has certainly helped to transform his career path. He now has the
general management position he wanted; more prospects; more job satisfaction and
of course, an increase in salary.
“I also make good use of the network I made at RSM. If I need finance or marketing tipsfor a project I’m about to undertake, I just phone up some friends.”
Berend ten Wolde is a Program Director at Stork Fokker, a company whose impressive
developments in designing and manufacturing aircraft components, and applying new
technologies and innovative materials have won them a prominent place in the world
market.
Wanting More
Berend’s technical background and experience had enabled him to gain considerable
expertise in the areas of Supply Chain Management and Operations. However, he
wanted more.
“Before coming to RSM, I had worked as a consultant at Accenture for 8 years, and I feltit was time to broaden my knowledge to include general management skills, finance andmarketing.”
He chose to do a part-time Executive MBA (EMBA) rather than a full-time programme
because he did not wish to take the risk of calling a temporary halt to his career. He also
believed that for him, a steady income would make it easier to bear the costs. He chose
RSM because it had the best Executive MBA programme content that he had seen.
He was certainly not disappointed.
“The Executive MBA at RSM certainly met all my expectations. I would recommend itbecause the price-quality ratio is high. It’s a very good programme and the structuredefinitely works.”
Freedom
Finances were an important factor the moment he started looking at MBA programmes.
“As a worst case scenario I had to be able to pay for it myself.”
Remarkably, the ‘worst case scenario’ turned out to have hidden benefits, and he now
has become a genuine advocate of self-financing.
“Consultancy companies were on very tight budgets after 9/11. This meant that mycompany could not support me financially – although they were very enthusiastic anddid allocate me some extra days off. In retrospect, I feel this was a positive thingbecause I didn’t have to sign a loyalty contract. So my freedom of movement wasn’tin any way curtailed.”
Speaking to Someone in Charge
After he had been accepted onto the programme, he decided to finance 50% himself
and get a loan for the other 50%. Although surprised that the majority of bank managers
and employees seem to be unaware of what a fantastic financial resource MBA partici -
pants are for their companies in the long-run, he was eventually able to negotiate a very
good deal with his home bank ABN AMRO.
“My tip is if you’re going to obtain a loan, don’t waste your time speaking with the wrongperson. Make sure you speak to someone in charge who has the power to negotiate andnot merely to repeat a lot of regurgitated figures on a page.”
SELF-FINANCING; THE HIDDEN BENEFITSAN INTERVIEW WITH BEREND TEN WOLDE, EMBA ALUMNUS
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Clearly, having the financial support is helpful. However,
you might be pleasantly surprised at how much of the
costs can be offset by savings and tax rebates – before
you even think of applying elsewhere for money. Always
begin by doing research to discover organisations and
publications which outline any grants and scholarships
available in your country; even small amounts can be a
help.
Tax Rebates
Every country has a different tax rebate system.
The Netherlands has a very generous educational ruling
if you are self-financing an MBA. It enables you to claim
back approximately half of your tuition fees over three
years, on condition that:
You are a tax-paying resident of the Netherlands;
The course of study is intended to improve your
future professional position or work opportunities;
You have already paid the fees;
The educational expenditure you declare is over
¤ 500 and no more than ¤ 15,000 per annum.
For example, if a self-financed EMBA student in the
Netherlands earns ¤ 65,000 a year, most of the fees
fall into the highest tax bracket (that is 52%) and, as a
result, the student is able to claim back up to ¤ 7,800 a
year, or a total of ¤ 22,880 over the three years in which
the fees are paid.
This example can be summarised as follows:*
Installment Year Salary Programme fees Tax Rebate
Year 1 ¤ 65,000 ¤ 15,000 ¤ 7,800
Year 2 ¤ 65,000 ¤ 15,000 ¤ 7,800
Year 3 ¤ 65,000 ¤ 14,000 ¤ 7,280
Total ¤ 44,000 ¤ 22,880
Foreign nationals on the 30% tax ruling are still entitled
to rebates for educational expenditure, and should
contact their companies or tax advisors to work out the
exact amounts.
The website of the Dutch Tax Authority,
www.belastingdienst.nl, has a download brochure
available giving full details.
If you are not a resident in the Netherlands, you should
check whether your own country offers tax benefits to
professionals engaged in improving their skills, perfor -
mance and employability.
* This is only an example and no rights can be claimed on the basis ofthis information.
HOW MUCH CAN YOU DO FOR YOURSELF?
You want a world-class MBA education, knowing that it will propel your personal and professionaldevelopment forward and be an enormous practical advantage to your career.
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SCHOLARSHIPS
Each year RSM also offers a number of scholarships to outstanding MBA candidates.
Admission to the programmes is independent of scholarship decisions. Accepted
candidates must apply for specific scholarships separately. Furthermore, RSM partners
with a number of external organisations that offer scholarships to MBA candidates.
For each of the programmes there are specific scholarship offerings. Details regarding
application to each of these scholarships can be found on the website, but in general
students accepted onto any programme are invited to write an essay as described,
which may be free text or on a predetermined subject.
More information and application forms can be found on our website at www.rsm.nl/mba
or contact [email protected]
We are always on the lookout for new scholarship opportunities to offer our students.
So you are advised to check our website on a regular basis for possible updates.
See on the next page what some of our scholarship winners say about their financial aid.
“We are grateful for the support of the many organisations
that partner with us for scholarships and sponsoring, and
hope that, as an MBA participant, you will not only benefit
from the financial assistance, but also gain valuable
experience from the programme you enter. We are keen to
work closely with your company to ensure they also receive
benefits from your participation in an MBA programme at
RSM.”
Hetty Brand-Boswijk
Director Financial Aid & Development
MBA Programmes
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“I was very impressed with the
transparent selection process.
As a self-financing student, having
a third of the tuition fee covered by
the RSM/Intermediair scholarship is
extremely helpful. What I enjoyed
the most was the journey from writing
the essay to defending it in front of
the selection panel!”
Amit Karnik, EMBA10, winner
RSM/Intermediair Executive MBA
Scholarship
“Receiving the Corporate Scholarship
means that a company that I admire
for its values and innovation is
supporting my personal growth.
In addition, the scholarship gives
the opportunity to interact with
Unilever at a very professional but
also personal level which gave me
great insight into one of my dream-
employers.”
Isabel Ferreira, MBA10, winner
RSM/Unilever Corporate Scholarship
“I am grateful to RSM for providing
me with this significant financial aid.
Not only does it make it easier for me
to complete my MBA degree, it also
makes me feel proud to have been
selected as the recipient among such
a great class of students.”
Kate Holch, MBA10, winner RSM
Gateway Scholarship
“Needless to say I was thrilled when
I learned that I had been awarded
the Women in Business Scholarship!
Receiving this scholarship felt like
a great recognition of my efforts as
a professional and a woman. I think
it is marvelous that RSM offers an
opportunity for OneMBA women to
apply for a scholarship and I strongly
hope that this will encourage even
more women to join the OneMBA
program.”
Tuula Nieminen, OneMBA10, winner
RSM Women in Business Scholarship
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FINANCING THE REST
Always bear in mind that any experienced, professional person on the brink of
undertaking one of RSM’s MBA programmes to improve their job prospects is a bank
manager’s dream; dynamic and low-risk, an ideal candidate for a loan.
You may find it an extraordinary notion to borrow money for something that is not
classically seen as a traditional loan purchase. However, it is important to remember
that participating in higher education that will enhance your career opportunities is an
investment that you will see a great return on in the future. Not only will it broaden your
personal horizons, it will make you more marketable in a society where education is
currently seen as a highly valuable commodity. It is, therefore, not only a regular
occurrence to loan money for higher education, it is currently being seen by lending
institutions as advantageous with clear ROI.
Banks are happy to lend you money and build a life-long relationship with you to your
mutual benefit and satisfaction. Once you have a clear vision of where you will be after
tax rebates, savings, scholarships and grants are taken into consideration, you will be
able to work out how much you still need to borrow. Your next step is to find the best
place to get it.
Bank Loans
Under these circumstances, it’s not surprising that many banks do offer specific loans
to enable people to continue their education. The following are some examples, but the
list is certainly not exhaustive.
RSM partners with the ING Bank on a number of projects. For our international
full-time MBA participants, the RSM works closely with the ING to assist those
students fulfilling the loan requirements with a 100% loan for the tuition fee. The
interest rate is 3% above the ING base rate with a minimum of 6%.*
The ‘The MBA Plus Package’ is available to participants of the RSM’s EMBA
programme or Global Executive OneMBA programme under certain conditions.
You should be a Dutch citizen or resident of the Netherlands in order to qualify.
Up to 50% of your tuition fees can be covered at an attractive interest rate. Here
the interest rate is 2% above the ING base rate with a minimum of 6%.*
For more information see our website www.rsm.nl/mba under your particular
programme of interest and then Next Steps/Financial Aid.
It is also advised to contact your personal bank to discover opportunities that may
be available for you there. As a long-standing customer, you may find that you can
negotiate better terms and conditions than if you apply for a loan with a bank that
does not yet know you.
* Please note that these percentages are subject to change.
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Financing from outside the Netherlands
Since the RSM MBA programmes have the Triple Crown Accreditation of AACSB (USA),
AMBA (UK) and EQUIS (Europe), many of our international students are also eligible for
loans from their own countries even though they will be studying in the Netherlands.
Again, one of the options may be to negotiate a loan with your personal bank, but other
options are available such as the NatWest MBA loans in the UK.
Check what types of loans are available to you in your own country and use some of the
examples above as a comparison to help you get the best possible arrangement.
Furthermore, RSM continues to research opportunities for financing in other countries
and as we find them we post them on our website. However, as this list can not be seen
as exhaustive, doing some research for yourself is always encouraged and our Financial
Aid Office is happy to assist and counsel when requested.
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PROGRAMME FEES AT A GLANCE
International Full-time MBA Programme
The cost of tuition for the MBA Programme is ¤ 38,000.*
This will be billed to you as follows:
Deposit ** ¤ 5,000 ***
1st instalment ** ¤ 16,500
2nd instalment ¤ 16,500
The programme fees cover tuition only.
Executive MBA Programme
The cost of tuition for the EMBA Programme is ¤ 44,000.*
This will be billed to you as follows:
Deposit ** ¤ 5,000 ***
1st instalment ** ¤ 10,000
2nd instalment ¤ 15,000
3rd instalment ¤ 14,000
The programme fees cover tuition, course materials
and essential EMBA textbooks.
The cost of the two study trips is included in your
programme fees, including accomodations and some
meals. However, each participant is responsible for
travel arrangements to and from the destination and
travel insurance.
Global Executive OneMBA Programme
The cost of tuition for the Global Executive OneMBA
Programme is ¤ 52.000.* This will be billed to you as
follows:
Deposit ** ¤ 5,000 ***
1st instalment ** ¤ 12,000
2nd instalment ¤ 17,500
3rd instalment ¤ 17,500
The programme fees also include lodging and organised
meals for the global residencies as well as any travel
requirements within each of the lobal residencies.
However, travel expenses to and from the global
residency locations in Europe, Asia and the Americas
are the responsibility of the individual executive.
The programme fee does NOT cover the cost of lodging
during the modules conducted at RSM. We have made
special arrangements at a local hotel which is adjacent
to our campus and details on rates and reservations
can be found by contacting the programme office.
Participants are strongly advised to own a laptop or
personal computer. The cost of this is not included in
the programmes fees. You should budget for some
miscellaneous travel expenses when calculating overall
programme costs.
Remember…
… that our staff at RSM will be delighted to answer your
questions and help you in any way possible. We look
forward to working with you!
For more information please contact:
Rotterdam School of Management, Erasmus University
Financial Aid Office - J Building
Burgemeester Oudlaan 50
3062 PA Rotterdam
The Netherlands
Tel.: +31 10 408 2222
Fax: +31 10 452 9509
E-mail: [email protected]
www.rsm.nl/mba
* Please note that tuition fees may be subject to change.
** If your first payment due is not received in the calendar year of thedue date, you will not be able to claim a tax rebate for that year.
*** An initial non-refundable deposit of ¤ 5,000 is required to secure yourplace on the programme.
www.rsm.nl/mba
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