MBA After 40 – Part 2: FAQ

In the first part of MBA After 40 we have talked about why it can be useful to consider an MBA program even as a seasoned manager or IC. In the second part I want to give you some answers and my own experiences to some general questions or consideration that might come up before applying – means you don’t have to be over 40 to gain from the insights. The questions and answers might be worth reading for anyone considering an MBA program.

1. Financing

How to finance an MBA program

A good MBA program usually doesn’t come cheap. Next to the often high fees of the Business Schools you have to consider costs for travel and accommodation, literature and more. There are several ways to finance an MBA program, including personal funds, employer support, scholarships, educational loans, and tax deductions. Many students combine multiple options to cover the costs. Below, I’ll go into more detail in the upcoming tips.

Tip 1: Look for scholarships or grants

There are various scholarships available for MBA students, often even from the business school offering the MBA program. For example, I received the Thought Leader Scholarship from my business school. My advice: if you meet the basic requirements for a scholarship, take the time to apply. Prepare well for the interview if you are shortlisted.

Additionally, many universities, foundations, and government institutions offer financial aid, often based on academic performance, work experience, or personal background. Some programs are specifically designed for international students or women in leadership positions.

Tip 2: Talk to your employer

Many of my fellow students had their companies cover part or even all of their tuition fees. It generally makes sense to discuss your MBA plans with your employer, especially because of the time commitment. My program typically ran every two weeks on Friday afternoons and Saturdays. I took Friday afternoons off as half-days. Colleagues whose companies contributed to the costs usually also received time off. In my case, employer involvement was out of the question because my scholarship was only for self-financed students. My personal goal was to complete the program as independently as possible. However, I couldn’t have managed without the flexibility to work half-days every second Friday and the support I received in conducting my master’s thesis at the company. So whether it’s about cost-sharing, time off, or just more flexibility and support in using internal time and resources, talk to your employer.

Many companies offer financial support for MBA programs, especially when the program is directly related to work requirements. This is often tied to conditions like staying with the company for a longer period after graduation, which can be a fair deal for both sides.

Tip 3: Take out a loan for your MBA studies

If you can’t or don’t want to pay the relatively high costs out of your liquid assets, you should consider taking out a loan — after all, you’re investing in yourself. It might sound like a tired cliché from ‘Rich Dad, Poor Dad,’ but your mindset should not be that it’s too expensive, but rather how you can finance it. Specialized education loans are another option for funding an MBA. They often offer better terms than regular consumer loans, with flexible repayment options after graduation. But pay close attention to the repayment terms. There are loans designed specifically for students, where the repayment amount is based on your income. Before enrolling, I once calculated the costs. With my salary at the time, the MBA program costs would have increased by about 50% due to repayment costs. If you expect a job change with higher pay after graduation, the repayment amount will increase further. Given the current average rate of 8% for a personal loan, you’ll do much better. When I was preparing for the program, interest rates were around 2–3%, and after the first semester of Corporate Finance, this would have been a no-brainer for me 😉.

Tip 4: Deduct your MBA costs from taxes

This is probably the most important tip. If I had known this earlier, I probably would have pursued an MBA much sooner. In many countries, MBA costs can be tax-deductible as professional expenses if the MBA is aimed at career development. It’s advisable to consult a tax advisor to optimize your individual options. In Germany, refunds of up to 40% are possible, not only for the tuition costs but also for travel expenses. This significantly reduces the initial high cost of a good program.

2. Accreditation

There are now countless MBA programs available, and some have relatively lax entry requirements. A good program can be recognized not only by regularly published business school rankings but especially by accreditation. Depending on what you want to achieve with your MBA, it doesn’t have to be the London Business School or the University of St. Gallen. Accreditation ensures that the academic standards are high and that the program has been reviewed by recognized institutions. The most well-known accreditations include AACSB, AMBA, and EQUIS. My program, for example, is AACSB accredited — for me, besides the curriculum, proximity, and focus on digital transformation, this was the most important criterion. An accredited program provides additional assurance of the quality of the education.

3. Time Management

An MBA requires a high degree of time management, especially if you are pursuing it part-time. Many programs offer flexible options like part-time study, online courses, or weekend seminars to better integrate studies with your work schedule. Clear planning and prioritization are crucial. Be aware that weekends (or even entire weeks in some programs) will be spent in classes, and you will also need time during the week for preparation, group work, and studying. Coordinating with other professionals for group work can be quite demanding. My team and I often worked together after work until 10 or 11 pm on several evenings a week to discuss and prepare presentations. People with families are dependent on the understanding of their loved ones. Think carefully about whether you can and want to sacrifice the additional time for your personal life.

4. Curriculum

As mentioned earlier, there are now numerous MBA and similar postgraduate programs with different focuses. At my business school, for example, the MBA program focused on either digital transformation management or the pharmaceutical industry. However, there are still programs focused on general management. Topics that play a larger role in such programs than in mine include human resources. On the other hand, my curriculum included topics such as digital business models or data analytics, which are incredibly valuable in my current role as CPO. Accreditation plays a critical role here again. Accreditation usually ensures a certain standard of content quality, and some courses are mandatory for AACSB accreditation. The curriculum of an MBA program typically covers core areas like leadership, finance, marketing, human resources, strategy, and business administration. Many programs also offer specializations in areas such as digitalization, innovation, or international management.

5. Admission Requirements

Admission requirements vary by program and institution. Generally, a completed undergraduate degree and several years of work experience are required. If these criteria and accreditation are missing, I would advise against the program — even if it seems more affordable. Additionally, many programs require a GMAT or GRE test, a statement of purpose, and recommendation letters. You should plan time for the latter, as your references may not be able to write a letter overnight. Writing motivation and recommendation letters, as well as applying for scholarships, gave me a great opportunity to reflect on why I wanted to do the program and what I wanted to achieve. My mindset shift actually began here.

Final Thoughts

Many business schools provide statistics on the composition of their cohorts. Be sure to look at these. Executive MBA programs are typically composed of more experienced and older participants. If you’re a woman, it might be important for you to network with other professional women. If you want to expand your network internationally, you’ll benefit if the group consists of participants from various countries.

If the business school you choose offers virtual classes, allows you to attend as a guest or gives the opportunity to talk to alumni directly, take advantage of it. You’ll get a sense of the interaction between the professor and the cohort, as well as the course rigor. If, like me, you’ve been out of university for a while, this will give you a sense of what to expect. Many MBAs I spoke to beforehand talked about a mindset shift that the program gave them. You’ll understand economic relationships, organizations, and leadership differently once you’ve gone through such a program. For me, this mindset shift was the most significant benefit of the program, aside from the knowledge I gained.

If you decide to start your program after reading this text, I wish you the best of luck and success. As I write these lines, I’m reminded of how much fun those super stressful two years were and how much I learned during that time — despite all the effort. Let me know what your experiences are once you’ve had a first impression.