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Loans or not for MBA financing?

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Loans or not for MBA financing? [#permalink] New post 21 Dec 2013, 23:41
Is there any situation in which it's worth it to actually take out loans to pay for an MBA if you don't need to? The one situation in which it looked like it would be worth it is if you have a US government subsidized loan where the government pays interest until you graduate, but that seems to require financial need which someone who can pay for their MBA in cash would not be able to demonstrate.

Has anyone here taken out loans even when they have enough money saved to pay for school? If so, why?
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Re: Loans or not for MBA financing? [#permalink] New post 22 Dec 2013, 20:34
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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.)
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Re: Loans or not for MBA financing? [#permalink] New post 06 Mar 2014, 18:25
I had the same question. I ran into a few articles on TopMBA that helped me a lot. Its too much to try to explain on here but basically you have the option of scholarships, loans and financial aid.
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Re: Loans or not for MBA financing? [#permalink] New post 15 Mar 2014, 17:45
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Mediatech 6 -- What did you decide to do here? Your journey is one faced by many students -- and I bet that people would appreciate learning about what you decided to do.
Thanks!
-Brian
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Re: Loans or not for MBA financing? [#permalink] New post 16 Mar 2014, 09:06
brianlange77 wrote:
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? :wink:
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Re: Loans or not for MBA financing? [#permalink] New post 29 Mar 2014, 16:42
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brandon432 wrote:
brianlange77 wrote:
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? :wink:


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!
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Re: Loans or not for MBA financing?   [#permalink] 29 Mar 2014, 16:42
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