Wang Yuanyuan

    With the sharp increase in the cost of MBA programs, an increasing number of people are taking out loans to pay for their tuition.

    The total cost of tuition for a three-year MBA program is about 20,000 yuan (US$3170) to 40,000 yuan in China, but it costs at least 100,000 yuan to earn an MBA in any of China’s top universities.

    Fudan University in Shanghai is charging 120,000 to 188,000 yuan this year, while Beijing University raised the tuition fee for MBA students by 40,000 yuan to 208,000 yuan in 2012. Qinghua University raised its MBA tuition fee to 188,000 yuan last year.

    Most of the people applying for MBA courses at universities are young professionals aged between 27 and 30. “They hope to improve their prospects and better themselves through the courses, but it is unaffordable for those who only make about 5,000 to 7,000 yuan a month,” said Cao Zhentian, a manager at a Bank of China outlet in Shenzhen.

    Many of these people had to take out loans to fulfill their dream of getting an MBA. As it is very difficult to get a loan for postgraduate study, petty loans are becoming very popular, Cao said.

    “Most prefer to borrow about 100,000 yuan and pay the rest with their savings. Although the interest is very high at small-loan companies, it can help them get into top universities,” Cao said.

    However, Lu Wang, a professor at Shenzhen University, suggested young people think it through when getting loans for MBA courses. “Whether the course can help you upgrade to a new level is unknown, so young people should think very carefully about the course, particularly when money is a big problem. If it does not bring you a salary increase, it is a big waste of time and money,” Lu said.