hiajit wrote:
I have been admitted to a top-20 US B-School without any scholarship.
I expect to spend 160K-170K including tuition, living, travel, club fees, etc. after making 5k-15k through a summer internship.
My goal is to start up within 2-3years of completing my MBA.
During those 2-3 years after my graduation, I wish to work in the tech industry in the US.
Therefore, from a career perspective, it doesn't seem right to keep paying off an education loan for 8-10years.
I have heard of a few cases where some international students who received visa sponsorship from companies were unlucky in the H1-B lottery process.
Now that's my worst nightmare!
Not only is it a compromise on my career goals, but it also means that I have to pay a massive American education loan on an Indian salary.
At least 3 years of working in the US would help me pay off half that amount.
What's your opinion? Should I take the plunge next week and put down that deposit?
I know this is a "it depends on ...." kind of an answer.
But is there something I am acting completely foolish/unaware about?
My other option is to apply next year with a better GMAT and get a scholarship.
(Wild, whacky suggestions/answers are as much appreciated as mature, experienced, well thought out ones! Thanks in advance!)
There is always a question about Entrepreneurs and MBA. The traditional answer is that it does not make sense to load yourself with 100-200K of debt in order to be broke during the startup process.... that of course has been a very weak deterrent to many stubborn entrepreneurs... it is life. I would not worry about H1B as you have no influence over it and who knows what the quota will be in 2 years or what the economy will even be.
One thing to mention/address is that it is going to be VERY hard to pay off your loan in 5 years or less. Not impossible, just very hard. I had a similar plan and there were a few things I was not aware of. 1) After graduation your budget will take many hits - you will need new clothes for work (and because you will be 10-20 lbs heavier thanks to junk food and lack of exercise), 2) You will need a car or a better car 3) You will just spend money much easier as you will be making more in your mind and you will be tired of a student lifestyle. 4) Student loans tend to have low APR so there is always a temptation to use it to pay off other loans (e.g. housing, car, credit cards, etc). Again, it is possible to be disciplined and save enough to pay off your $180 by that time in loans but on a 120K salary, you will pay $30K in taxes ($35K in some states) and you will need to save $50-60/year to pay off your loans in 3 years. That leaves you with $25-40K and rent/car/insurance/etc will eat a lot of it up; not feasible really to live in any major metro area unless you live with many roommates and eat junk food (which many have done for the last 2 years and usually want to stop/edn as soon as humanly possible). Bottom line - that loan will take a while to pay out.
That brings the point of top 20 MBA vs. Top 50 for example - if you are planning to start your own company, a school like Babson or a few others may make the most sense, and esp with a scholarship in hand, you can start working on your venture while in School - I started GMAT Club during my first year of business school (thought it was more of a hobby than a business). The difference in opportunities and the fact that you want to start your company does not justify trying to get into a slightly better ranked program. Just my 2 cents.
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