career Invest in your ROTTERDAM SCHOOL OF MANAGEMENT ERASMUS UNIVERSITY MBA PROGRAMMES FINANCING YOUR MBA

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1 ROTTERDAM SCHOOL OF MANAGEMENT ERASMUS UNIVERSITY MBA PROGRAMMES FINANCING YOUR MBA Invest in your career The business school that thinks and lives in the future

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4 THE PLACE FOR YOU 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 manage ment 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. 4

5 FINANCING YOUR MBA - INTRODUCTION Making the decision to embark on an 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. 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 return on investment (ROI) on an MBA continues to be strong Dave Wilson, president and CEO of GMAC 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. 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. 5

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7 FINANCIAL ALTERNATIVES At the RSM approximately 60% of participants receive company sponsor ship of some kind. Although these are predominant ly 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 inter national 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, done in the past by the Graduate Management Admissions Council, has shown that, on average, it takes approxi mately 17 months for a company to gain its return on the investment it made in reimbursing or sponsoring an employee in an MBA programme. 7

8 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 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 International Full-time MBA Programme it is clear that the sponsor ship 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 one week in each year of the programme for the International Study Trip. 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 8

9 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. RSM cannot advise on tax returns for individuals and recommend that for The Netherlands you check with the tax office or your personal financial advisor. 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. 9

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11 HOW MUCH CAN YOU DO FOR YOURSELF? 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. 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. 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 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: The website of the Dutch Tax Authority, has a download brochure available giving full details. If you are not a resident in the Nether lands, you should check whether your own country offers tax benefits to professionals engaged in improving their skills, performance and employability. 11

12 SCHOLARSHIPS Each year RSM also offers a number of scholarships to outstanding MBA candidates. Admission to the program mes 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 or contact finaid@rsm.nl. 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. 12

13 RSM's financial aid alternatives make a huge difference. MBA professionals are offered RSM scholarships based on their career progression and other criteria (depending on which RSM scholarship you apply for), regardless of their background or nationality. I feel honoured to receive this scholar - ship and I am committed to be an outstanding ambassador for the RSM. Carlos Ortiz, MBA Class of 2012, winner RSM Dean s Fund Scholarship Following two interviews, I was delighted to be the recipient of an RSM / Eastman Corporate Scholarship. It was an unfor - gettable experience and an opportunity that provided me with an insight into the company culture as well as the opportunity to network with the Management Team. They showed their interest in expanding their talent pool, which is very important for a young MBA candidate and I am very grateful for their support. I was delighted to find out that I had been awarded an RSM Global Citizen ship Scholarship. I was very happy to receive such a positive acknowledge ment of my work and extra-curricular contributions to environment, conservation and the wider community. When I met my class, MBA12, I was very proud to know that I had been chosen from such a distinguished group of people! The award has been of great benefit to me, helping me to pursue my goal of an RSM MBA. Yueling Hu, MBA12, winner of RSM Eastman Corporate Scholarship Caroline Cawley, MBA Class of 2012, winner RSM MBA Global Citizenship Scholarship 13

14 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. 14

15 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 ING Bank has been a longstanding supporter of RSM MBA Programmes but does not have a special loan programme for Executive MBA participants. For the Executive MBA Programme you may apply as an individual to the ING for a private loan to finance all or part of your programme if you are resident in the Netherlands. For more information see our website 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 longstanding 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. 15

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17 I am both grateful and proud of having been awarded the RSM / Intermediair Scholarship The scholarship provides a welcome financial support, while strengthening my high commit - ment to the MBA even further. Marijn Damstra, EMBA12, winner of RSM Intermediair Scholarship Being a RSM Woman in Business scholarship winner means a lot to me. I was delighted to receive this award and felt very thankful to RSM for encouraging women in business to show up, be proud of them selves, participate and win. It meant that my work was appreciated and that I was able to reflect the gender aspect in the essay that I wrote. The essay was about microcredit and, surprisingly, Microfinance institutions were within the minority who survived the financial crisis. Many microfinance institutions are run by women, and as RSM encourages women in leadership, it is even more of an honour to be recognised for this. Olga Grigorieva, OneMBA, winner RSM Women in Business Scholarship 17

18 Scholarship Recipients at the Award Luncheon with Eastman Senior Management From Left to Right : Godefroy Motte, Senior Vice-President, Chief Regional & Sustainability Officer Jan Ringlever, EMEA Business Finance Manager Yueling Hu, MBA12, winner of RSM Eastman Corporate Scholarship Eastman and Rotterdam School of Management (RSM), Erasmus University struck up a partnership in 2007 with a goal of further reducing the distance between both the academic and business worlds within the fields of research and education. The RSM is an internationallyranked business school that focuses on developing leaders in global, sustainable businesses. The four key areas of collaboration between Eastman and RSM are research, recruitment, training & development and marketing & branding initiatives. Eastman offers an Eastman Scholarship to International Full-time MBA participants at RSM. The recipients receive financial support and regular mentoring from Eastman employees in their field of study and an internship at the company. Rita van der Linde, HR Manager Regional HQ/EMEA Talent Management Rita van der Linde, HR Manager Regional HQ/EMEA Talent Management Atreyi Dass, MBA12, winner of RSM Eastman Corporate Scholarship Jan Schuller, Director Reach & EMEA Product Safety Joost Berting, Managing Director EMEA, Regional Business Director PCI 18

19 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! 19

20 Rotterdam School of Management Erasmus University Accredited by Financial Aid Office - J Building Burgemeester Oudlaan PA Rotterdam The Netherlands Tel.: Fax: finaid@rsm.nl Follow us on facebook.com/rsmmba twitter.com/rsmmba youtube.com/user/rsmmba B&T Ontwerp en advies (