Can a Federal Pell Grant Be Used for an MBA?

While most grants are earmarked for undergraduate students, MBA students have several options to help offset tuition expenses.

While students are burdened by the rising costs of a postsecondary education, the competitive job market and education requirements of some lucrative careers necessitate that students obtain an undergraduate and sometimes even a graduate degree. The Federal Pell Grant is one option to help low income students cover tuition costs. If a student does not qualify for a Pell Grant, he has other options such as school grants and fellowships, private and charitable organization grants and employer sponsorship of tuition costs.

The Pell Grant

Congress developed the need-based Pell Grant in order to help low income students pay for college. For the 2011-2012 school year, awards for full-time students ranged from $555 to $5,550 and were distributed according to the student’s financial need. The Pell Grant is only available to students who have not yet received a bachelor’s degree or a professional degree. Since a Master of Business Administration (MBA) program requires its students to have obtained a bachelor’s degree prior to enrollment, MBA students are not eligible for the Pell Grant.

School Grants and Fellowship Money

There are no government grants specifically earmarked for MBA students. However, they can help offset their tuition costs by applying for grants and fellowships from MBA schools. Students interested in these should apply to a broad range of MBA schools. Such funds are generally not advertised, so students need to contact each school's financial aid department to which they were accepted. Most school grants and fellowships are need-based and are distributed on a first-come, first-serve basis.

Private Agency and Charitable Organization Grants

Private agencies and charitable organizations offer grants, fellowships and scholarships to MBA students. Unlike school grant money, there are both need-based and non-need-based private grants. These grants typically have specific requirements often based on a student’s race, heritage or geographic location. For example, the National Society of Hispanic MBAs offers scholarship awards from $2,500 to $10,000 for student members of the NSHMBA who are at least of half Hispanic heritage.

Employer Reimbursement

Most MBA programs require students to have work experience. Sometimes a student’s employer may help cover the costs of his MBA if he agrees to continue working for the company after he receives his degree. The employee should contact human resources to research whether his company has a tuition reimbursement policy and if so, the amount of past awards. While many employers have cut this benefit to save money in the down economy, some still offer tuition reimbursement for superior workers. Interested employees who approach management on the issue should be prepared to highlight their value to the company and why obtaining an advanced degree can help its future.

References

• Pell Grants: Background and Issues; Margot A. Schenet, et al.; 2003
• UCLA Financial Aid Office; 2011-2012 Pell Grant Guide; 2011
• MBA-Options.com: MBA Admission Requirements
• MBA Financial Aid Options: MBA Grants
• Stanford MBA Program: Fellowships & Scholarships
• The Wall Street Journal; Asking an Employer to Help Pay for an M.B.A; Toddi Gutner; March 2009

Resources

• Paying for College: Answers to All Your Questions about Financial Aid; Stephen Clemente, et al.; 2008