MBA funding question

Unless someone has an especially generous set of parents, pretty much everyone will be funding their education with loans or scholarships. At 25-27 years old, it's pretty hard to save up the >$100k you'd need for two years of tuition and living expenses.

Taking a $100k + loan is still quite scary for me (Disclaimer: I am European = free undergraduate education + not used with the concept of indebtedness to fund education)

Then you're ahead of the game. There are a lot of people in the US who took out student loans for their undergrad as well. Think of it as an investment that will shape the rest of your life.

You are fortunate to start with a clean slate, thank your government for its fair education policy. Most MBA students carry student loan debts for tuition and living costs from their undergraduate. Imagine what it is for them to increase the debt by another $100,000. If you wish to learn more about the student debt time bomb, read NYTimes.com/education with comments from readers.

I think most small MBA small talk is about how much loan students take. If you are from Europe, you also need to adjust your mindset to healthcare costs in the US.

Well then, I'd like to welcome you to the US education system, where student loans control us all...

I have about $30k in cash savings and about another $20k in non-retirement stock accounts but I'm still leaning towards using a good chunk of loans. As a career switcher there is a chance I could graduate without a job and I would like to keep some of my savings around in case I have to live off of them after graduation.

It's scary for all of us. Unfortunately, we don't really have much other choice in the US.

Damn! You are going to get killed in NYC. I've got c. $50k in cash savings but I am so averse to indebtedness I will use all of it on tuition.

No student loans, and 50K in savings...

You do not deserve to make this thread...

You have $50k in cash savings and think you "haven't saved much?" You have probably 5-10x what most MBA students will have in cash savings and you got your undergraduate degree for free. You have absolutely nothing to worry about at all.

I went to a commuter state school for undergrad and came from a poor single single parent household so luckily was able to graduate debt free thanks to scholarships, grants, and a low state tuition. Thanks to my entrepreneurship endeavours I'm not going to take out any loans as well. Debt scares me and at 7% interest its not worth me keeping my money at 1% in a savings account.

7% is just insane. In Europe the rates are just so much lower. It will be 3.5% for me. A swedish friend told me of rates being even lower in Sweden (1.5-2%).

Ha ha.. consider indian applicants.. $100k is more than 5 years' total salary for an average applicant.. interest on education loan 14%
And did I read that you are scared

How much do indian mba programs cost?

Most of the indians go to US for MBA. There are hardly 3-4 good programs in ISB, IIM A,B... Ohh I ran out of names after 3.
Tuition at these schools is around $40k or so..

While most people here are concerned about "being in debt", people from India, aka me, will have a problem even getting that kind of a loan. Unless one lands up in one of the best schools, the stanfords or kelloggs of the world, no school will cosign the loan for you. And if you do not get a US-cosigner, which will be the case for 99% of applicants, you wont get a loan (even at 10%) from any US creditors. This means the only choice we have is Indian creditors, who will only provide a loan up to $30k-$50k at 12-14% without any collateral. If you want full tuition+living expenses, one would need to provide collateral or mortgage your house.

I am still trying to figure out how to get a loan. Will come to the problem of worrying about the debt later.

12-14% is really stiff. Here in Western Europe I can borrow ($50k max though) at 3.5% (there is a parental guarantee though).

But I am really worried about the cost on the U.S. part of my funding package. I am leaning toward Yale at the moment and the loan they sponsor for international students carries a 7.75% interest rate ... and you need to add to that a ridiculous 5% origination fee. Given I would need to borrow at least $50k from Yale on top of the $50k of my Euro loan I am really not happy about that.

I have pretty much gave up on matriculating from Booth (my dream school) because I would need to get $125k of loans (at the very least). I don't want to be in that position once I graduate, especially given I am no aiming for consulting or finance jobs (been there done that).