An online Master of Business Administration (MBA) can be a great way to advance your career without leaving your job or relocating.
However, the cost is one of the most common concerns for potential students. Online MBA programs can cost anywhere from a few thousand dollars to over $100,000. Depending on their financial circumstances, this can be a major entry barrier for some students.
Even if your program of choice is out of your price range, there are many ways to offset your expenses, including federal financial aid, scholarships, and employer tuition reimbursement programs.
Here’s a closer look at the typical cost of an online MBA and how you can leverage financial aid to finance your education.
How Much Does an Online MBA Cost?
The cost of an online MBA program can vary greatly depending on the institution, the program length, and other factors. At top-ranked universities, you can expect to pay anywhere from $50,000 to $90,000 to earn an MBA online. However, there are more affordable options for students whose primary concern is the cost of attendance.
According to U.S. News & World Report, the average cost for the country’s ten most affordable online MBA programs is $310 per credit hour for out-of-state students, with the most affordable option (University of Texas Permian Basin) having a total program cost of $8,246.
On the other end of the spectrum, the total cost of tuition and fees for Carnegie Mellon University’s online MBA program is $141,320, according to The Princeton Review.
When looking at potential programs, it’s important to check what fees the program charges. Technology, distance learning, and administration fees can range from hundreds to thousands of dollars, significantly impacting your total program costs.
Cost Comparison: Traditional vs. Online MBA Programs
When comparing the cost of an online MBA program to a traditional MBA program, there are several categories to consider. Here is a breakdown of the typical costs for each type of program:
| Cost Category | Traditional MBAs | Online MBAs |
| Tuition | $60,000 – $100,000 | $7,000 – $100,000 |
| Fees | $2,000 – $10,000 | $500 – $5,000 |
| Books and supplies | $1,000 – $2,000 | $1,000 – $2,000 |
| Transportation | $3,000 – $5,000 | $0 – $1,000 |
| Total | $66,000 – $117,000 | $8,500 – $108,000 |
As you can see, the cost of an online MBA program can be significantly lower than a traditional MBA program. Given how much programs can vary in cost, it’s important to research your options carefully to find a program that meets your educational and financial needs.
This also doesn’t consider living expenses, as these can vary depending on whether you live at home, independently, or on campus.
What Other Factors Impact the Cost of an Online MBA?
While tuition and fees will be the main factors that impact your education costs, there are a few other things to consider.
Living expenses
If you’re pursuing an online MBA, your living expenses will likely remain the same as before starting the program.
However, depending on your program, you may be required to attend in-person events occasionally. You may need to pay for accommodations, food, and other living expenses while away from home.
Enrollment status
Online MBA programs often offer part-time, full-time, and accelerated enrollment options. Your enrollment status can impact your total costs.
Part-time students, for example, may pay less per semester due to taking fewer credit hours at a time, but their total costs are likely to be higher as it will take them longer to complete the program. Some schools offer lower tuition rates for full-time students or cap tuition after a certain number of credit hours. This means that the faster you get through the program, the less you pay.
Type of institution
If saving money is your priority, you may want to choose a public institution over a private university.
Per the National Center for Education Statistics, the average cost of graduate tuition and fees for public institutions was $12,596 per year for the 2021-2022 academic year, compared to $28,017 for private institutions. Based on this data, private institutions charge more than double for graduate degree programs than public universities.
However, that doesn’t mean that public universities are always cheaper. Private institutions often have more funding from alumni and other supporters, which allows them to offer more scholarships, grants, and other financial aid to help offset the higher tuition costs.
Books and supplies
In addition to tuition and fees, you will also need to budget for books and supplies. While some online MBA programs may provide digital textbooks or other resources, you may still need to purchase additional materials.
EducationData.org estimates the total cost of books and supplies for both online and in-person programs to be about $1,465 per year.
Can I Get My MBA Fully Online?
In many cases, yes, you can get an MBA entirely online. This can be especially beneficial for students already working full-time or with family responsibilities. An online program allows you to complete coursework on your own schedule while balancing the other areas of your life.
However, reviewing your program’s requirements is important as some will require you to enroll in some in-person courses, attend occasional in-person events, or complete residencies. Obtaining an MBA online could also make engaging in networking opportunities and building relationships with faculty and other students harder. It also requires a high degree of self-discipline and motivation to be successful.
What Scholarships and Financial Aid Options Are Available for Online MBAs?
If you’re concerned about the cost of an online MBA program, financial aid, and scholarships can help offset your expenses so that you can get your degree without going into excessive debt.
Applying for financial aid
You must fill out the Free Application for Federal Student Aid (FAFSA) to be considered for financial aid. Schools use the FAFSA to determine a student’s eligibility for federal loans, grants, and work-study programs. Private lenders also use the FAFSA to determine eligibility for private student loans.
If you don’t fill out this application, you won’t be considered for these types of financial aid. You must renew your application each school year to be considered for federal student aid.
How to find scholarships
Scholarships are another way to offset the cost of an online MBA. Many schools offer scholarships to students based on their academic performance or financial need. There are often scholarships available for both in-state and out-of-state students.
You can find scholarships on your school’s website and through scholarship search platforms like the College Board’s scholarship match tool.
Make sure to review each scholarship’s eligibility criteria to determine if you qualify. Depending on the scholarship, you might have to submit essays, transcripts, or other materials as part of the application process.
Students can also look for scholarships through other sources, such as professional organizations, foundations, and private companies.
Other Ways to Offset the Cost of an Online MBA
Federal aid and scholarships aren’t the only ways to finance your education. Fellowships and employer tuition reimbursement programs can help you pay for your online MBA program, allowing you to graduate debt-free in some cases.
Fellowships
Fellowships are another way to offset the cost of an online MBA. Like scholarships, fellowships are typically awarded based on academic performance, financial need, or other criteria. However, fellowships may provide additional benefits beyond financial support, such as research opportunities, mentorship, or networking events.
Fellowships offer a great way to finance your education while gaining practical, hands-on experience in your field.
Employer tuition reimbursement
One of the most common ways to pay for online MBA programs is to take advantage of an employer tuition reimbursement program.
Many companies will pay for their employees’ education if it is related to their current job or could otherwise fulfill the needs of the company. Your employer may be willing to pay for your online MBA program in an effort to develop talent internally.
Check with your human resources department to learn more about any tuition reimbursement programs your employer offers.
Is an Online MBA Worth It?
An online MBA can be a cost-effective and convenient way to obtain your master’s degree. It also opens up the door to advanced career opportunities and a potentially higher salary. Those who have a master’s degree earn an average of $12,688 more per year than those with only a bachelor’s degree, according to data from the Bureau of Labor Statistics (BLS). Unemployment rates are also generally lower for those with advanced degrees.
However, because an MBA is relevant to multiple positions, the earning potential is even greater. For example, financial managers earn an average of $156,100 per year, and the top 10 percent of management analysts can earn more than $172,280 per year. Many positions in business and management are also poised to see higher-than-average job growth over the next 10 years, which can mean a great ROI on the cost of an online MBA.
Interested in a degree instead?
Learn more about online degrees, their start dates, transferring credits, availability of financial aid, and more by contacting the universities below.