It's a simple question of the 'cost' of that money today and tomorrow.
If you have the cash on hand, do you think you can generate a higher-return with that cash than what it would cost you to borrow? Remember that there is a small interest tax deduction on back-end when you are paying it back. Are you relatively risk-averse and prefer having cash on hand?
Treat this no differently than you would any other asset/investment (car loan, etc.)
Pretty reasonable line of thinking.
As a side note, if you have the cash to pay for an MBA, you're part of a very fortunate minority!!?! Why walk away from your successful PE career now?
It's important for people to think about the long-haul. Sometimes, you have to take a step sideways, or even backwards, to get to the ultimate goal. And there is no one.. I repeat.. NO ONE.. who best knows what your ultimate goal is than the guy (or gal) you see in the mirror on a daily basis!
Brian Lange | Manhattan GMAT Instructor | North Carolina
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