We have already covered the NPV (Net Present Value) of business school, so if you have decided that it is in your interest to attend, how do you pay for it?  Short of having a rich uncle that has dreamed of you getting your MBA for years and wants to pay for the whole thing, there are a couple of options for you to help ease the burden.

Save: The first of course is to save ahead of time and the best way to save is a tax free way.  The option that I took advantage of is the 529 plan.  Every state has different rules on this so please check, but you can open a college savings plans even for yourself. You will save on taxes and if you end up not going to school, you can always transfer the money, tax-free, to another 529 plan for your children or spouse.  Your parents or even that rich Uncle can also set one up and if you end up not going, or even not using all of what they saved they too can transfer it to another person.

Clearly I did not save enough to cover the whole two years, but it felt good to spend tax free money from when I was actually making money during that long two year period of being without a paycheck.

In-state: The next step is only comes into play at certain state schools.  The UC system offers great in-state deductions and if you are planning on going to UCLA Anderson, UC Berkeley’s Hass or any of the other UC schools you should establish residency as soon as possible.  Even if you do not qualify for in-state rates in the first year, you can apply in the second year and save almost $10,000.  The best way to establish residency is to open a local bank account, register to vote, get a driver’s license, register your car, get a summer internship in California and pay some taxes (which will happen if you get a summer internship).  You will have to apply during the summer in between school years, but it is well worth the effort.

When I received the letter from the state of California I was more nervous opening it up than opening the acceptance letter.  It felt like the lottery, and in many ways $10,000 difference really is.

Fellowships: The next step is to seek out scholarships or fellowships.  Go onto the school’s website and view the list of fellowships and scholarships available.  Sometimes they will be offered to you if you are a stand out applicant, but for some writing a letter or calling the school has paid off.  If you believe you are uniquely qualified for one of them go for it.  It does not hurt to ask, especially once you are been granted admission and before you have accepted.

If you are lucky enough to receive one of these make sure to find out of the person giving it is still alive.  I almost lost mine for not writing him a thank you letter, because for some reason I assumed it was in honor of a person who had passed away and not a generous living breathing alum.