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Financing Your MBA

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Re: Financing Your MBA [#permalink] New post 20 Apr 2012, 10:11
Has anyone encountered the problem of the posted MBA budget being too low? For NYU Stern, the cost of living is stated as $23,534 for room and board, $7,206 for personal expenses, and $936 for local travel (a total of $31,676 for a nine-month academic year, or $3,520 a month; if you spread it across 12 months, it's only $2,640). While you could probably achieve this on a budget (i.e. living like a college student), if I went there I would most likely spend way more than this. My non-retirement savings are quite small and may not cover the excess, especially when you take the summer into account, since you can't simply move out of your apartment if you don't have an internship. Is there any way to borrow over and above this amount, either from the gov't or private lenders?
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Re: Financing Your MBA [#permalink] New post 20 Apr 2012, 12:10
SealTeamCeltics wrote:
Has anyone encountered the problem of the posted MBA budget being too low? For NYU Stern, the cost of living is stated as $23,534 for room and board, $7,206 for personal expenses, and $936 for local travel (a total of $31,676 for a nine-month academic year, or $3,520 a month; if you spread it across 12 months, it's only $2,640). While you could probably achieve this on a budget (i.e. living like a college student), if I went there I would most likely spend way more than this. My non-retirement savings are quite small and may not cover the excess, especially when you take the summer into account, since you can't simply move out of your apartment if you don't have an internship. Is there any way to borrow over and above this amount, either from the gov't or private lenders?


If you take summer classes, your cost of attendance will be adjusted to reflect a higher living allowance. You would be allowed to borrow up to $42,234 or so for a 12 month year. Otherwise, you can't borrow extra money. You also still get the full living allowance as long as you are enrolled at least half time at the school, generally speaking as far as I know. Don't borrow too much if you don't have to.

I know you can request a budget adjustment, but only for the months you are going to be in class, no exceptions.

You cannot use any type of student loans in order to borrow more money than the cost of attendance, period. And though some of you may disagree with me, I believe that you should only use the Stafford and GradPLUS loans because of the built in federal protections. You don't get that with private lenders.
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Re: Financing Your MBA [#permalink] New post 20 Apr 2012, 13:34
Thanks for the reply. Has anyone run into the problem of not having enough in loans + non-retirement funds to pay for school + living expenses? I even have a fairly hefty scholarship, but ironically that doesn't help my financial situation at all during business school.

To the private vs. federal loans issue, the way I see it is this: you're paying a hefty premium for the federal "protections" (e.g. forbearance, forgiveness, deferment, etc.). But the probability of you not being able to repay a reasonable amount of student loan debt is (we hope) fairly small. For many of us we have parents, relatives, or loved ones who would most likely help us in such a dire situation. In this case, I would certainly take the lower private rates, since those rates in themselves lower the probability of falling into a dire situation.
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Re: Financing Your MBA [#permalink] New post 20 Apr 2012, 13:47
I get that private loan rates may be lower if your credit qualifies (or with a cosigner). Yes, my family will help me out if I'm really dire and needed to put down a deposit in school, but they're not going to pay my student loans and see their credit go in the crapper because of me.

Private loans will demand that you pay an ex amount to them regardless of our income, etc., and the payment terms are therefore inflexible as opposed to the federal loans (10 yr forgiveness if in a public service job, IBR/ICR, etc.). Discover and Sallie MAe won't do that for you. All of these loans are non-dischargeable as well, so god forbid you had to file Chapter 7 or 13, these loans are still on your backs after discharge unless you are paralyzed and can't work for the rest of your life.

Granted, the MBA market looks better than the JD market, but given how uncertain job prospects can be, I find it best to have the most flexible payment options are available. I don't intend on going $300K in the hole, but I don't want to see the worst case scenarios pile on me and hear sallie mae come knocking at my door if I can't pay. They make a killing with college students who choose to go to private or out of state public universities, because their parents will only pay so much (EFC), and the students can't borrow federal loans to cost of attendance. Only mom and dad can through PLUS. So the student must use Sallie Mae or go to a cheaper institution (through financial aid and/or tuition price).
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Re: Financing Your MBA [#permalink] New post 22 Apr 2012, 22:36
I need some advice.

I have about $30k sitting in an open mutual fund. It's not in a Roth or traditional IRA, or even a 529 plan.

My question is should I cash it out prior to starting my MBA (taking out loans to cover the rest) or wait to cash it out until AFTER I graduate and finance my MBA with all loans?
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Re: Financing Your MBA [#permalink] New post 24 Apr 2012, 13:24
mdesamero wrote:
I need some advice.

I have about $30k sitting in an open mutual fund. It's not in a Roth or traditional IRA, or even a 529 plan.

My question is should I cash it out prior to starting my MBA (taking out loans to cover the rest) or wait to cash it out until AFTER I graduate and finance my MBA with all loans?


That's for retirement, I'd say take out the loans for the first year, and then re-assess your situation if you want to cash that out in order to limit loan debt.
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Re: Financing Your MBA [#permalink] New post 24 Apr 2012, 18:52
I have about 25k in outstanding loans from undergrad but am enrolling in an MBA program this fall. does anyone know if lenders are willing to stop/lower interest while I am at school? obviously I will have no/limited income other than my internship while I am attending.

any help or advice is greatly appreciated, and apologies if we've hit on this topic before!
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Re: Financing Your MBA [#permalink] New post 27 Apr 2012, 13:16
tjb822 wrote:
I have about 25k in outstanding loans from undergrad but am enrolling in an MBA program this fall. does anyone know if lenders are willing to stop/lower interest while I am at school? obviously I will have no/limited income other than my internship while I am attending.

any help or advice is greatly appreciated, and apologies if we've hit on this topic before!


Once interest starts accruing on your loans, it continues to accrue indefinitely until you pay them off. So you may not have to pay your loans while in school, but interest continues to accrue on your undergrad loans. This is definitely the case w/ Federal loans, and is almost always the case with private loans (aka Sallie Mae, etc.)
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Re: Financing Your MBA [#permalink] New post 14 Jul 2012, 04:01
Three main things to consider when looking for financial aid:

- Grants and scholarships
- Corporate sponsorship
- Loan

There's a useful article on the Global MBA Report website (I think it's in their Admissions/GMAT section?), which gives some guidance and useful links on how to research the above options. It also shows MBA programs ranked by 'Value for Money'!

Personally I'm getting a loan from the Bank of Mum & Dad!!!
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Re: Financing Your MBA [#permalink] New post 30 Jul 2012, 23:08
thanks for sharing this info.
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Re: Financing Your MBA [#permalink] New post 12 Aug 2012, 10:13
mdesamero wrote:
I need some advice.

I have about $30k sitting in an open mutual fund. It's not in a Roth or traditional IRA, or even a 529 plan.

My question is should I cash it out prior to starting my MBA (taking out loans to cover the rest) or wait to cash it out until AFTER I graduate and finance my MBA with all loans?


Have you decided what you're going to do? I'm debating what to do with my money for next year. I've shifted to putting money into a savings account instead of the stock market since I'll be using it shortly for school. I just can't decide what to do with some of my long-term stock holdings and savings when I actually start school. I don't like taking on more debt than I have to but I feel like I'm better off taking a little more loans than I think necessary and holding the cash as a just in case. My wife will be working full time so that will help but she has grad school loans of her own we will need to be paying off so I can't count too much on her salary supporting us a whole lot. Especially if I end up in a big city like NYC or Chicago.
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Re: Financing Your MBA [#permalink] New post 11 Jan 2013, 01:05
Hi I am an Indian thinking about doing MBA in US . I have a few questions which are making me kind of tense . Can you please help me answer them .

What is the current scene for Indian Students studying in (M7 +Next 8) Business Schools in US?Are they able to get good jobs after MBA ?How much role does Visa sponsoring play in final FT Recruiting for Indians there who doesn't have work permit/green card ?Is the competition tough for foreign graduates (~around 40% of the class I guess ) as the firms may have limited quota for foreign students.
How are the job prospects for MBA graduates in the current market ?(for foriegn students especially )

I am planning on my MBA and I was shortlisting schools .I would like to know your honest opinion on this.Is it worth taking 100k + loan and apply to US MBA schools.I don't have that kind of money but I am willing to take risk if it really worth?
and approximately in How much time an average MBA graduate is able to repay that loan .
THANKS for your help answers in advance :)
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Re: Financing Your MBA [#permalink] New post 15 Jan 2013, 04:14
Hi all,

Not sure if anyone can help me, but I'm looking at funding options. I'm from South Africa. I have a co-signer, but they're Canadian, not American. Do you know of any US banks that would give loans with Canadian co-signers?

Thanks
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Re: Financing Your MBA [#permalink] New post 15 Jan 2013, 08:08
not sure if this is representative. i am trying to get a private loan from Sallie Mae and they said they don't accept applications until 2 months prior to disbursement? my plan is to take advantage of the low interest rates and get a variable loan for the first year. if rates skyrocket, i'll prepay the most i can and switch to the stafford loan my second year.
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Re: Financing Your MBA [#permalink] New post 18 Jan 2013, 15:25
This thread is amazing.. I highly recommend reading through from the first post to the end.. very educational.

A private vs public loan question:

For people who have no intention of working in the government and are confident in job prospects, are there any other reasons for getting a public loan over a private one? I'm curious because rates for fixed private loans with cosigner seem lower than Stafford or Grad PLUS..
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Re: Financing Your MBA [#permalink] New post 24 Mar 2013, 17:35
Moodyz wrote:
This thread is amazing.. I highly recommend reading through from the first post to the end.. very educational.

A private vs public loan question:

For people who have no intention of working in the government and are confident in job prospects, are there any other reasons for getting a public loan over a private one? I'm curious because rates for fixed private loans with cosigner seem lower than Stafford or Grad PLUS..


Private loans can have variable rates. So while it might be low now, it can skyrocket later. The Direct and Grad Plus have fixed rates.


hotelganpati256 wrote:
Just considering the price of an MBA is enough to give you a situation of angina. But before you start looking for your insurance plan cards and contacting 911, keep in mind that this is an economical commitment in your upcoming, an economical commitment that should educate you the program of determining an ROI (return-on-investment), which is almost certainly beneficial.

Funding for an MBA can come from a wide range of sources. The most genuine ones are economical aid/loans—federal and private; individual benefits, allows and fellowships, and work-study roles. The most impractical sources of money? Highly-paid part-time perform, that really wealthy dad, on-line online texas holdem, day dealing, and core dealing (we’re joking, of course).

And while everyone has to determine how to pay, there is no worldwide strategy. This aspect of MBA preparing is exclusive to you. Your sources, university, citizenship, and record of credit will all perform significant tasks in interpreting your transaction strategy.
------------------------------------------------------------------------------



Weird, the above post is 100% copied and pasted from a book, Case Studies and Cocktails.
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Re: Financing Your MBA [#permalink] New post 26 Mar 2013, 17:23
pancaketown wrote:



Weird, the above post is 100% copied and pasted from a book, Case Studies and Cocktails.


Thanks for the heads up.
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Re: Financing Your MBA [#permalink] New post 26 Mar 2013, 20:24
Can someone comment on this plan?

I live in CT and have not purchased any 529. They have a 1-1 deduction up to 5k. I am planning on going to school in September. Is it possible to fund my 529 this year and then just withdraw it the same year? (I would probably withdraw the same day, so there is no investment risk)

i could do this for 2 years, and save 600-700 in CT income tax
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Re: Financing Your MBA [#permalink] New post 25 Apr 2013, 14:28
Hi All,

I am not seeing anything addressing a particular problem I am having with the student loan process so I am hoping someone on this thread may have some knowledge. My tuition and mandatory fees are going to be covered by my parents but I will need to take out loans the cover the rest. Most of the student loans I am seeing disburse to the school you are attending and then the office of financial aid hands over the amount of money that remains after tuition fees etc have been deducted. Having spoken with a Columbia Business School Financial Aid Officer briefly they indicated that they are obligated to subtract the tuition first and then disburse the loans even if the tuition has already been paid.

For tax reasons my parents have to pay the school tuition directly or else the money given to me or paid off on my loan is subject to a gift tax on them or income tax for me. Has anyone else had this type of situation and if so what was the solution? Were you able to get a private lender to disburse a student loan directly to you or work something out with the financial aid office at your school?

Thanks!
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Re: Financing Your MBA [#permalink] New post 25 Apr 2013, 16:30
any data about Canada ? what are the options for financing an MBA in Canada?
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Re: Financing Your MBA   [#permalink] 25 Apr 2013, 16:30
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