Impact investing has been gaining popularity in recent years as more investors look to align their values with their investment decisions. Cornell University has been at the forefront of impact investing education with its Cornell Impact Investing Program. This program offers students hands-on experience in impact investing while also conducting research to advance the field. However, like any specialized program, there are program fees required for enrollment. This article will explore the options available for paying the program fees at Cornell’s impact investing center.
The Cornell Impact Investing Program is housed within Cornell’s SC Johnson College of Business. It was launched in 2013 as one of the first university-based impact investing centers in the world. The program provides opportunities for MBA students to manage an impact investing fund as part of their coursework. Students learn through real-world experience as they source deals, conduct due diligence, make investment decisions, and monitor the fund’s portfolio.
In addition to the student-managed fund, the program also includes applied research and field building initiatives to share lessons learned with the broader impact investing community. Industry conferences, practitioner workshops and a student-led journal help disseminate research coming out of Cornell.
However, operating such a hands-on program requires resources, which translates into program fees for enrollment. So what options exist for MBA students to pay for the program?
Scholarships and grants can fully or partially cover program fees
One of the best options for mitigating the cost of program fees is through scholarships and grants. Cornell offers some scholarship support specifically for students interested in impact investing.
The Cornell Impact Investing Program itself provides a limited number of scholarships each year to qualifying students. These are merit-based scholarships that fully cover the cost of program fees. Competition is fierce, so students need to showcase how they will contribute to the program and field.
There are also external scholarships and grants available. For example, the Ceniarth Scholarship provides up to $25,000 annually for students pursuing impact investing. And the CapShift Foundation provides grants covering half of program fees for students committed to entering the impact investing field.
Students should thoroughly research all possible scholarships and grants they may qualify for. Many foundations and donor-advised funds today support impact investing education efforts. Securing even partial outside scholarship funding can help significantly defray total program costs.
Loans allow students to pay over time, but accrue interest
Student loans are commonly used to pay for higher education, including added program fees or costs. Cornell offers federal direct loans that MBA students can utilize to cover impact investing program fees.
The main advantage of loans is that they allow students to only pay a portion of fees while enrolled. Repayment doesn’t begin until 6 months after graduation. Plus, federal student loans typically have lower interest rates than private loans.
However, loans do accrue interest over time. So while loans defer the burden of payment, they end up costing more in the long run as interest builds. Students will want to minimize loans if possible and shop for the best rates.
Federal student loans also have annual and aggregate limits. So large program fees may require layering in private loans at higher rates or originating the debt through alternative sources.
Employer sponsorship brings funds without future payment burden
Some students are able to secure employer sponsorship to cover impact investing program fees. This is most common with students who will work for an asset management firm, foundation, family office or corporation with an impact mission.
Employer sponsorship typically takes the form of tuition reimbursement, where the employer pays for fees directly or reimburses the student. This allows students to pursue impact investing education at no personal cost.
The main advantage here is avoiding future loan payments or being beholden to scholarship contingencies. Employer sponsorship brings needed funds without the payment burden down the road.
Students who already have an impact-oriented employer should discuss the possibility of tuition reimbursement. And those seeking employment can highlight program cost sponsorship as a negotiating point with mission-aligned organizations.
Savings preserve funding options, but require planning
For students who have diligently saved, personal savings may be an option to cover impact investing program fees. This allows students to limit debt while preserving future funding options.
However, saving sufficient funds to fully cover program costs requires advance planning. Students need to budget accordingly and start saving early if they want to minimize loans. Interest gained on savings can help offset a portion of fees as well.
The key is assessing total program costs early on and developing a savings plan to build funds over time. Students can also look into high-yield savings accounts or CD ladders to maximize returns on saved funding.
Personal savings should be viewed as only part of an overall funding strategy. Layering some savings with scholarships, loans, part-time work or family support can get students to their funding goal.
There are a range of options MBA students can utilize to pay the program fees for Cornell’s impact investing center, including scholarships, loans, employer support and personal savings. Students will likely need to combine multiple approaches to cover the full cost. The key is researching all available funding sources and developing a plan to layer funds in a way that minimizes interest payments down the road.