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Re: Financing Your MBA [#permalink]
 22 Jan 2009, 15:38
I will throw in there that private loans don't always offer the bells and whistles of the federal dollars. Flexibility with repayment (income-sensitive, graduated, forbearance, extended payment terms) is mainly what i am thinking of. Private student lenders vary quite a bit, while all federal lenders follow the exact same rules.
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Re: Financing Your MBA [#permalink]
22 Jan 2009, 16:23
solaris1 wrote: If you are uncomfortable with this interest rate risk, you should take out the GradPlus loan which offers a fixed 8.5% rate no matter what.
Bear in mind you can also take out $41,000 (over two years) worth of federal loans through the Stafford program @ 6.8% fixed. I plan to take the full amount in Stafford loans before considering "private" education loans.
Ahh!!! No locked in rate. I see! Ok, the Stafford is looking much better at this point. It is a gamble, but I would a relatively safe one if you feel you can pay off the loans in a short period of time? For example, if you finance $41K of the $90K of tuition by Stafford, then the remainder ($49K) at 4.X% variable rate, the prime would have to go up almost 300 bps before you matched the rate on a Stafford, right? If you feel you can pay off the loans in 5 years or less (at least the non-Stafford loans), even if the prime rate went up 600 bps, the overall impact would be relatively small. Considering the state of the credit market/economy I would guess that rates will be relatively low for the next few years. Or am I missing something here? RF
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Re: Financing Your MBA [#permalink]
23 Jan 2009, 01:12
Loan Crisis Hits the MBA WorldWith big lenders requiring co-signers, international students are finding that money is tight. For many, B-school dreams may be over before they start http://www.businessweek.com/bschools/co ... =rss_daily
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Re: Financing Your MBA [#permalink]
23 Jan 2009, 03:33
ninkorn wrote: Loan Crisis Hits the MBA WorldWith big lenders requiring co-signers, international students are finding that money is tight. For many, B-school dreams may be over before they start http://www.businessweek.com/bschools/co ... =rss_daily Yes, this is true. It is just not possible to get a co-signer. And not all schools have equal empathy towards the situation.. BTW, I do not think the international student population will reduce alarmingly , since anyway lion's share of the international students in TOP US B-schools have credit history ( and in many cases Green Card) in US or come from the creme-de-la-creme segment of an international country. There will be reduction of international student of course but the first two groups will fill that shortfall.
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Re: Financing Your MBA [#permalink]
23 Jan 2009, 04:13
Do they count green card holder as international student though?
I agree with you. The numbers won't go dip at all.
I've been hanging out with internationals since I was an undergrad..and..I notice a lot of creme de la creme internationals for undergrad. I'm not saying all of them are, but a big portion of them usually would be successful regardless of bschool.
For school, I believe they don't even need any kind of loan. And these people have good 'why mba' stories too (because they have something running already that they can take further if they have that mba) plus loaded recommendations.
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Re: Financing Your MBA [#permalink]
24 Jan 2009, 17:25
I recall reading, some time ago, that one should try to postpone any financial gifts when attempting to secure Federal aid for B-School. When I receive my Financial Aid package, will the amount I have in my 401(k) and/or savings account affect how much the Federal government would be willing to loan me? I recall hearing that one could borrow up to the full budgeted yearly amount from the Fed, but I'm guessing the amount of money in my accounts would determine how much Uncle Sam gives me in subsidized loans.
Last edited by MeddlingKid on 24 Jan 2009, 17:51, edited 1 time in total.
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Re: Financing Your MBA [#permalink]
24 Jan 2009, 17:52
aaudetat wrote: MeddlingKid wrote: I recall reading, some time ago, that one should try to postpone any financial gifts when attempting to secure Federal aid for B-School. When I receive my Financial Aid package, will the amount I have in my 401(k) and/or savings account affect how much the Federal government would be willing to loan me? I recall hearing that one could borrow up to the full budgeted yearly amount from the Fed, but I'm guessing the amount of money in my accounts would determine how much Uncle Sam gives me in unsubsidized loans. they do not count qualified retirement accounts (401k, IRA) or the value of your home. They will look at non-qualified accounts, such as savings, money market, stocks, etc. The subsidized/unsubsidized part is determined by need. So a person could, theoretically, take out the full amount in Plus loans even if he didn't receive any need-based Stafford aid?
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Re: Financing Your MBA [#permalink]
24 Jan 2009, 17:58
Yes, but why would you want to do that if you can take $20,500 in unsubsidized Stafford loans at 6.8% each year, as opposed to the GradPlus loans at 8.5%. Eligibility for unsubsidized Stafford loans is not need-based. And even if you qualify for subsidized Stafford loans, you can only borrow $8,500 a year under the auspices of that program. MeddlingKid wrote: So a person could, theoretically, take out the full amount in Plus loans even if he didn't receive any need-based Stafford aid?
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Re: Financing Your MBA [#permalink]
24 Jan 2009, 19:00
solaris1 wrote: Eligibility for unsubsidized Stafford loans is not need-based. And even if you qualify for a subsidized Stafford loans, you can only borrow $8,500 a year under the auspices of that program.
not need-based? my bad. I know that in undergrad my friends from wealthier families got all of their staffords as unsubsidized while mine were all subsidized.
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I read this article talking about financial aid and loans are down this year. This hasn't hit me yet, since I applied in R2. For those of you that applied in R1 and got admitted, have you guys started looking into how to finance the education? Is financial aid and loans really down? I think Kry said his loan jumped to 11%, that's crazy, my credit card rate isn't even that high. Any anecdotes you would like to share? http://news.yahoo.com/s/ap/20090125/ap_ ... PCw_Gs0NUE
Last edited by nink on 25 Jan 2009, 06:35, edited 1 time in total.
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Re: Financing Your MBA [#permalink]
25 Jan 2009, 10:24
solaris1 wrote: Just a quick comment, the official website for federal student aid programs is: http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp. Everything else is just some lender posing as an "official" resource. StaffordLoan.com is just a site owned by one such lender, and is not affiliated with the Department of Education's Stafford program. While you are free to go with any lender for Stafford and GradPLUS loans (the incentives and rates virtually all lenders offer are now identical), it's probably a good idea to pick a Stafford/GradPLUS lender "recommended" by your school's financial aid office. This doesn't apply to private education loans however. isa wrote: Woah - good to know that there are sites posing as "official" resources. Thanks for the heads up.
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Re: Financing Your MBA [#permalink]
25 Jan 2009, 10:26
solaris1 wrote: And the rates you posted isa apply to undergraduate Stafford loans. Stafford loans for graduate study are fixed at 6.80%, they don't come down gradually like the undergraduate ones will in coming years. Good to know solaris1 - I was actually going to ask why they come down gradually. I had heard that the rates were fixed so that was confusing. 
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Re: Financing Your MBA [#permalink]
26 Jan 2009, 14:04
FYI BW is hosting a chat with with Dan Thibeault, president and co-founder of Graduate Leverage, a student lending organization launched by Harvard Business School students. He’ll be answering questions about everything from how international students can find a co-signer to how much money you’ll really need to fund your MBA education. http://forums.businessweek.com/n/pfx/fo ... &tid=79078
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Re: Financing Your MBA [#permalink]
26 Jan 2009, 14:29
ninkorn wrote: FYI BW is hosting a chat with with Dan Thibeault, president and co-founder of Graduate Leverage, a student lending organization launched by Harvard Business School students. He’ll be answering questions about everything from how international students can find a co-signer to how much money you’ll really need to fund your MBA education. http://forums.businessweek.com/n/pfx/fo ... &tid=79078FYI - I met this guy and thought he was pretty cool. We talked about teaming up to do something at Fuqua, but somehow first year slipped away from me....
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Re: Financing Your MBA [#permalink]
05 Feb 2009, 17:56
I have no problem covering the tuition and estimated living expenses through scholarship and Stafford loans. However, I am very confused as to how one covers car payments and credit card debt through the two years without income. I know it is illegal to direct education loans to such expenses, but I also find it hard to believe that no one has ever attended grad school who hasn't owned their car in full or had zero credit card debt. Also, I know federal loans can't be taken out over the school's estimated expenses. My particular school's estimate seems paltry at best...can private education loans be taken out to cover expenses above the estimated amount, or are these too capped off at what the school estimates?
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Re: Financing Your MBA [#permalink]
09 Feb 2009, 11:57
Has anyone tried to take a loan against their current mortgage to fund their education?
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Re: Financing Your MBA [#permalink]
09 Feb 2009, 14:33
I'm going into B-school with no debt, save a leased car that I'll be making payments on for another year and a half or so. The payment isn't bad. I know it'll make things a little tighter budget-wise, but who's to know if I use part of my cost of living allowance from my loan to pay for my car (and save on, say, rent or something else)? Surely others have done this.
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Re: Financing Your MBA [#permalink]
11 Feb 2009, 07:06
I'm going with the idea that you can take the loan out at the rate of financing for the home, which would be cheaper than the rate of loans for school....
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Re: Financing Your MBA [#permalink]
11 Feb 2009, 07:07
bigfernhead wrote: I'm going with the idea that you can take the loan out at the rate of financing for the home, which would be cheaper than the rate of loans for school.... Just remember that there is no grace period on home loans. You'll have to take out more to be able to make payments on the loan while in school.
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Re: Paying for MBA [#permalink]
12 Feb 2009, 15:26
liubhs02 wrote: I read this article talking about financial aid and loans are down this year. This hasn't hit me yet, since I applied in R2. For those of you that applied in R1 and got admitted, have you guys started looking into how to finance the education? Is financial aid and loans really down? I think Kry said his loan jumped to 11%, that's crazy, my credit card rate isn't even that high. Any anecdotes you would like to share? http://news.yahoo.com/s/ap/20090125/ap_ ... PCw_Gs0NUEGoing through the private loan process right now, and my experience has been similar to kryzak. No cosigner needed, but my rate is looking like LIBOR + 9.75% = 10.25%.  Loan amount is the cost of tuition for LBS and my FICO score was just above 800 last time I checked. I'll probably just use the full amount of the HSBC loan scheme instead.
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Re: Paying for MBA
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12 Feb 2009, 15:26
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