But with so many options available—including federal or government student loans, or bank or specialist finance firm support—where do you start? You might turn to generative AI (gen-AI) tools such as ChatGPT or Perplexity to break things down. The problem? The financial advice these tools provide can’t be relied upon entirely.
In this article, we dig into the pitfalls of using gen-AI for your funding research—but also give tips on more reliable ways to research financing your MBA or business master’s.
1. Use ChatGPT or gen-AI tools (with care)
Tools such as ChatGPT, Claude, and Perplexity can be useful for doing some preliminary research into student financing options. Indeed, new research from InvestorsObserver found that gen-AI tools offer “accessible and user-friendly advice” with “detailed financial breakdowns”.
However, the same report found that using gen-AI tools risked a danger of receiving incomplete warnings about the dangers of private loans and alternative funding options. Additionally, they can give oversimplified repayment advice and minimal guidance on hardship protections.
This lack of personalized support amid rapidly-evolving financial aid policies means that you should only use gen-AI tools or AI-generated overviews as a jumping-off point.
It may seem obvious, but it’s important to cross-check the information that these tools give you. Some, such as Perplexity, automatically provide the sources behind information—which can help you make sure the advice checks out.
Remember, you should be doubly wary about sensitive and important information that AI answers provide, such as potentially risky loans and details on interest rates. Always check official sources.
2. Consider your own situation when researching student funding
While the advice given by gen-AI tools can be useful to a certain extent, it will likely be quite surface-level. These tools provide a useful overview of your financing options, but rarely give detailed advice tailored to you and your personal circumstances.
To counteract that, try to research the most relevant financial aid options for you. For instance, several countries offer their own government-funded scholarships, so it’s worth checking those out if they apply to you. For instance, the British Council has a range of scholarships available to international students hoping to study in the UK.
3. Always consult official sources for funding information
If you’re ever unsure about the information you’ve researched, always check the official or original source. University and business school websites are often a good place to start.
For example, London Business School lists a number of student finance options on its website, including government, country-specific loans, and information on specialist companies. Emory University guides you through the process step-by-step, and IIM Bangalore divides its scholarships into need-based and merit-based options.
4. Before committing to a loan, talk to a human
Doing your research is one thing, but nothing really beats personalized, tailored advice from a fellow human being. If you have any friends or family who went to university, it might be worth asking them to see if they know anything about financial aid.
Failing that, a lot of universities allow you to arrange a call with their admissions team, who you’ll be able to ask about financial aid—especially once you’re admitted. Columbia Business School gives you the option of arranging an in-person or virtual chat with its admissions team, you can book a 30-minute call with the team at Wisconsin School of Business, and you can speak with current MBA students at Foster School of Business. Most schools will have similar options available.
It's always sensible to talk to someone before committing to a loan—and be sure to look at a few options rather than going for the first that you explore. After all, business school is one of the biggest investments in your future that you’ll make, so you want to make sure you start off on the right footing.
Key takeaways
- ⇨ Generative AI (gen-AI) tools such as ChatGPT and Perplexity can be a useful starting point for researching student finance options—but they cannot be relied upon entirely.
- ⇨ Research has uncovered a number of issues facing these tools, including giving overly optimistic financial advice, understating the risks of private loans, and failing to give personalized guidance.
- ⇨ Students can avoid these pitfalls by cross-referencing key information, consulting official sources, and seeking human help. Be sure to explore all your options.
