Handling Chicago's Costs

The University of Chicago's admissions director talks about budgeting, loans, and other financial aid issues facing students at the top-ranked B-school

Rosemaria Martinelli
University of Chicago

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Rose Martinelli is the admissions director at the University of Chicago Graduate School of Business, BusinessWeek's No. 1-ranked B-school for 2006. With annual tuition just shy of $45,000, a Chicago MBA can crimp a student's budget, though Martinelli points out that Chicago graduates are recipients of "great" job offers.

Among the school's financial aid offerings, the GSB rewards "the best and the brightest" and highly qualified candidates from developing countries with its merit-based and target scholarships. Martinelli notes the GSB does not offer any scholarships purely on the basis of financial need.

Martinelli spoke with BusinessWeek.com's Erica Pelzek. Here are edited excerpts of their conversation.

Can you give a quick summary of the GSB's financial aid services?
I think most of the top-tier schools are committed to providing access to financial aid. We work very closely with our students to work out a combination of loans or scholarships or whatever else they need. For international students, if they are in need of it, financial aid is guaranteed. Whatever you need to borrow in loans is given to you. The cost of an MBA for a full-time program and the amount of salary lost has continued to increase over the last 11 years. A lot of people ask, "What is my return on this?" This cannot be considered a short-term investment. Not only is it an academic education, but it's an experience and a place to really develop oneself beyond that first year. You can pretty much guarantee that if you receive admission to the University of Chicago, you will receive a great job offer, if you're proactive. It really is about the long-term.

Your emphasis on the long-term leads to my next question: What can prospective students do now to make budgeting easier for them when they're in the GSB?
If you're thinking about an MBA, you need to get your financial house in order. If you're thinking about going to graduate school, you should be thinking about living slightly below your means—saving as much as you can and doing your best to avoid credit-card debt. I often see students coming in with credit-card debt. I also see a lot of students coming in with a lot of college debt—but that you can defer while you're still in school. But you need to prepare.

Besides credit-card debt, are there any other common pitfalls with regard to budgeting and finances for first-year MBA students, and how can students avoid them?
I would just say as future business managers, knowing one's own personal finances and making wise choices is important. Get rid of things you don't need—if you don't need a car, get rid of the car. Also, just because you can borrow the money doesn't mean you should.

What is your recommended academic-year budget for MBA students?
Our tuition is $44,500. With lifestyle considerations, it's going to be about $72,000 to $73,000. A lot of people can live much more efficiently than that, though. Our rent [off-campus or on-campus] allows students to pay up to $1,500 per month on that budget, so it's very flexible. Not necessarily their former-CEO lifestyle, but still a fairly nice living arrangement.

Are assistantships available to MBA students?
Lots! The University of Chicago has enormous opportunities to both work administratively and with the faculty. In the admissions office alone, we hire...

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