Not you, but my company. I am hoping to approach my employer to ask them to fund my MBA. My employer is a blue-chip company (bank), although despite that a few of my colleagues have MBAs, it is not the norm. What is the best way to approach my employer with this? I have spent 4 years with this employer, although I am only a few months into a new job at a new department. Should I hold fire? I have come to the conclusion that I am not prepared to take out an MBA-loan (at 7-8% or whatever), nor prepared to fund it with my own savings (which would wipe all my savings). The only prudent way to get this degree is to stay with my employer, and kindly ask them to put in the money. Any ideas guys? Also, what are your views about online MBAs (this is my backup plan if I wont get the sponsorship)…
Most “Blue Chips” have a tuition rembursment program, where have to pay for your classes upfront and then you get paid back a certain amount after you pass the at leat a B. Most company’s like this usually limit it to like $5,000 per year (give or take a couple $1,000). It is defenately not the norm that they would pay all of your expense. I have heard of some places (e.g. Cargill) that continue to pay the annual amount until your degree is paid off if you keep working there after you graduate.
What is the current tuition reimbursement that your company offers? Personally I wouldn’t go the online MBA route I did a financial planning class last year and while it was great being that I didn’t have to go to class, participation was lacking overall and it wasn’t as beneficial as I expected. Can you afford going full time? Many schools will give you generous scholarship’s and you’ll often be done in < 2 years. My employer offers 7k and my past did 5.2k which is the limit without getting hit with taxes. Funny thing I did a research project in one of my MBA classes concerning tuition reimbursement at the fed and found that out of all the districts only one offered > 10k (I think that was NY) Overall grad school tuition is pretty ridiculous but anything over 10k is pretty generous in my eyes. Oh also look into how long you have to stay with the company afterwards so you don’t owe them a dime if you leave.
IRS guidelines state that the maximum tuition reimbursements that company’s can pay is $5,250 per year. This of course, is for the company’s tax benefit. They can pay for more (or less) if they want. When I was at PwC, their limit was $5,250 and PepsiCo’s limit is also $5,250. Good luck!
I work at TROW and received my MBA December 2007! The tuition reimbursement at TROW (before the Q1 of 2008) had to be the best benefit they offered! I was able to get 100% of my MBA paid for! Through the university, I was able to pay $35 before each course to defer payment until after 60 days from the end of each class. I would then pay via credit card (GM Card where I get points), submit to TROW, get the reimbursement, and not have any finance charges! I would have been stupid to not start my MBA! As of Q1 2008, they’ve gone to a different program: If you leave TROW, any classes taken within the last 0-12 months must be 100% repaid; anything within the last 12-24 months must be 50% repaid; after 24 months, you’re free! Therefore, if you stay at TROW 2 years AFTER completion, you get a FREE education! YOU CAN’T BEAT THAT!!!
yes, this is usually clearly disclosed by large corporations. there are some examples at banks where they pay for an exec MBA. I have also heard annecdotes about banks that pay for mba (full-time), then require you stay for some period, but never actually heard it first person.
My company pays first $2500 and then 50% of the rest of the tuition… I think it’s a good deal, though there might be some tax consequences (didn’t look much into it because still thinking of going full-time).