Last visit was: 19 Nov 2025, 19:23 It is currently 19 Nov 2025, 19:23
Home
GMAT
Messages
Tests
Schools
Events
Rewards
Chat
My Profile
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
User avatar
highhopes
User avatar
Joined: 26 Mar 2008
Last visit: 26 Mar 2022
Posts: 644
Own Kudos:
138
Given Kudos: 16
Schools:Duke 2012
GMAT 1: 740 Q49 V42
Posts: 644
Kudos: 138
Financing Your MBA 31 Dec 2010, 11:12
Kudos
Add Kudos
Bookmarks
Bookmark this Post
atlantis2
Regarding demonstrating need for need based scholarships: Is the need usually determined by your income over the last three years or also the amount of cash you have in your bank account / other assets. I am asking because I hold some assets under my name that are actually for a family member, but it will inflate my assets when I'm applying for scholarships. If it is only based on income I'm fine. Should I transfer the assets to the appropriate person before the time comes to apply? Is there a time limit by which this should be done?
Show more

It's more than just your income, but I'm not sure what all is included, definitely savings accounts and the like. I would not worry about it though, it seems like everyone gets the same loan options regardless of the assets they have.
User avatar
Jmw125
User avatar
Current Student
Joined: 17 Oct 2010
Last visit: 30 Apr 2019
Posts: 332
Own Kudos:
62
Given Kudos: 29
Location: NYC
Schools:Wharton - Class of 2013
GPA: 3.4 princeton
WE 1: 2y bb ib
WE 2: 2y Mid market PE
Posts: 332
Kudos: 62
Financing Your MBA 31 Dec 2010, 12:43
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Any answer to using savings vs. taking on debt? %wise? How much cash do people conserve?
avatar
cliff1127
avatar
Joined: 26 Jan 2011
Last visit: 15 Apr 2015
Posts: 7
Own Kudos:
6
Schools: HBS '17 Stanford '17 Wharton '17 Sloan '17
Posts: 7
Kudos: 6
Financing Your MBA 26 Jan 2011, 09:54
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Jmw125
Any answer to using savings vs. taking on debt? %wise? How much cash do people conserve?
Show more

bump
User avatar
Jmw125
User avatar
Current Student
Joined: 17 Oct 2010
Last visit: 30 Apr 2019
Posts: 332
Own Kudos:
62
Given Kudos: 29
Location: NYC
Schools:Wharton - Class of 2013
GPA: 3.4 princeton
WE 1: 2y bb ib
WE 2: 2y Mid market PE
Posts: 332
Kudos: 62
Financing Your MBA 26 Jan 2011, 12:14
Kudos
Add Kudos
Bookmarks
Bookmark this Post
cliff1127
Jmw125
Any answer to using savings vs. taking on debt? %wise? How much cash do people conserve?

bump
Show more
huh?
User avatar
EBM
User avatar
Joined: 16 Dec 2010
Last visit: 19 Apr 2024
Posts: 750
Own Kudos:
163
Given Kudos: 6
Affiliations: HBS Class of 2013
Location: United States (TX)
Schools: HBS '13 (A)
Schools: HBS '13 (A)
Posts: 750
Kudos: 163
Financing Your MBA 26 Jan 2011, 16:23
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bump=getting an older thread back up towards the top of the queue so people are more likely to notice it and give their input.

I don't know how most people do it, but I'd say as long as you keep enough cash on hand to cover living expenses and keep you set in case of an emergency, you're fine paying out of pocket for your MBA.

But if you have some solid investments that are likely to pay off at a higher return than the interest rate you would be paying on your loans, you'd be better off putting some of that cash into investments and taking out loans for your degree.
User avatar
Michmax3
User avatar
Joined: 14 Oct 2009
Last visit: 30 Jun 2012
Posts: 353
Own Kudos:
265
Given Kudos: 53
Status:Current Student
Concentration: CPG Marketing
Schools:Chicago Booth 2013, Ross, Duke , Kellogg , Stanford, Haas
GPA: 3.8
Products:
My Reviews
Posts: 353
Kudos: 265
Financing Your MBA 17 Feb 2011, 16:36
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Jmw125
Any answer to using savings vs. taking on debt? %wise? How much cash do people conserve?
Show more

I am curious about this too. Not sure how much cash to keep and how much to use to avoid taking a bigger loan. I was thinking of setting aside $10k for any emergencies or to cover a few months living expenses after graduation, does this amount sound reasonable? Would it be best to take any remaining cash to pay first semester tuition and living expenses and defer receiving any loan disbursements until I run out to cut down on accruing interest?

I have no idea how student loans work, fortunately didn't need for undergrad...do they disburse the full tuition amount upfront and then continue to pay out for living expenses throughout the year? Also do I need to reapply for loans each year, or do I apply for the full amount I think I will need at once?
avatar
socalmike
avatar
Joined: 05 Jun 2007
Last visit: 01 Sep 2014
Posts: 101
Own Kudos:
33
Given Kudos: 8
Posts: 101
Kudos: 33
Financing Your MBA 19 Feb 2011, 19:29
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Michmax3
Jmw125
Any answer to using savings vs. taking on debt? %wise? How much cash do people conserve?

I am curious about this too. Not sure how much cash to keep and how much to use to avoid taking a bigger loan. I was thinking of setting aside $10k for any emergencies or to cover a few months living expenses after graduation, does this amount sound reasonable? Would it be best to take any remaining cash to pay first semester tuition and living expenses and defer receiving any loan disbursements until I run out to cut down on accruing interest?

I have no idea how student loans work, fortunately didn't need for undergrad...do they disburse the full tuition amount upfront and then continue to pay out for living expenses throughout the year? Also do I need to reapply for loans each year, or do I apply for the full amount I think I will need at once?
Show more

Yes, have a "banker" boyfriend and you will be all set :wink:
User avatar
Michmax3
User avatar
Joined: 14 Oct 2009
Last visit: 30 Jun 2012
Posts: 353
Own Kudos:
265
Given Kudos: 53
Status:Current Student
Concentration: CPG Marketing
Schools:Chicago Booth 2013, Ross, Duke , Kellogg , Stanford, Haas
GPA: 3.8
Products:
My Reviews
Posts: 353
Kudos: 265
Financing Your MBA 22 Feb 2011, 14:09
Kudos
Add Kudos
Bookmarks
Bookmark this Post
socalmike
Michmax3
Jmw125
Any answer to using savings vs. taking on debt? %wise? How much cash do people conserve?

I am curious about this too. Not sure how much cash to keep and how much to use to avoid taking a bigger loan. I was thinking of setting aside $10k for any emergencies or to cover a few months living expenses after graduation, does this amount sound reasonable? Would it be best to take any remaining cash to pay first semester tuition and living expenses and defer receiving any loan disbursements until I run out to cut down on accruing interest?

I have no idea how student loans work, fortunately didn't need for undergrad...do they disburse the full tuition amount upfront and then continue to pay out for living expenses throughout the year? Also do I need to reapply for loans each year, or do I apply for the full amount I think I will need at once?

Yes, have a "banker" boyfriend and you will be all set :wink:
Show more

Well that wasn't too helpful...anyone else?
User avatar
aaudetat
User avatar
Joined: 01 Nov 2006
Last visit: 10 Jan 2016
Posts: 1,854
Own Kudos:
233
 [1]
Given Kudos: 2
Concentration: Social Enterprise
Schools:The Duke MBA, Class of 2009
Posts: 1,854
Kudos: 233
 [1]
Financing Your MBA 22 Feb 2011, 19:47
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Looks like I'm your banker boyfriend.

Your financial aid accounting will happen twice in the year, at the beginning of each semester.

Around August, they will take your total due for the first semester and then apply half of any scholarships, loans, or grants that you've received. If there's money left over, that's the part they disburse. You can take out financial aid up to the school's total cost of attendance (COA). COA = tuition plus fees plus an estimated cost of living plus a first year laptop. They'll repeat this process around January and you will get your other half.

Cash versus Loans: That's a personal decision. We all know that you pay more on debt than you make on savings, but that's not really the decision point here. I guess I would get as much as you can in loans and other financial aid. Then make a spending plan so that you don't burn through the disbursement before second semester starts. Hold the cash to the side to pay for things that you can't get a student loan for: getting hit by a car (yep, it happened to me my fist term), touring Argentinian wine country with your awesome new friends (couldn't go - was having surgery from car accident), a shopping spree after realizing that your nonprofit wardrobe won't make the cut for banking interviews (I thought my COA should have been ratcheted up accordingly, by no dice).

If it turns out that that $10M is just sitting there after year 2, then go ahead and pay down those loans! Or put a down payment on a house or whatever.

That's how I would have done it.
User avatar
bakfed
User avatar
Joined: 28 Jul 2009
Last visit: 12 Oct 2022
Posts: 1,768
Own Kudos:
1,245
Given Kudos: 37
Status:Darden Class of 2013
Schools:University of Virginia
GMAT 1: 660 Q44 V37
Posts: 1,768
Kudos: 1,245
Financing Your MBA 22 Feb 2011, 20:38
Kudos
Add Kudos
Bookmarks
Bookmark this Post
aaudetat
getting hit by a car (yep, it happened to me my fist term), touring Argentinian wine country with your awesome new friends (couldn't go - was having surgery from car accident)...
Show more

ouch....it's almost a bit funny reading it, but it must have sucked at the time... hope you're all okay from it now :-D
avatar
cliff1127
avatar
Joined: 26 Jan 2011
Last visit: 15 Apr 2015
Posts: 7
Own Kudos:
6
Schools: HBS '17 Stanford '17 Wharton '17 Sloan '17
Posts: 7
Kudos: 6
Financing Your MBA 22 Feb 2011, 21:02
Kudos
Add Kudos
Bookmarks
Bookmark this Post
aaudetat
Looks like I'm your banker boyfriend.

Your financial aid accounting will happen twice in the year, at the beginning of each semester.

Around August, they will take your total due for the first semester and then apply half of any scholarships, loans, or grants that you've received. If there's money left over, that's the part they disburse. You can take out financial aid up to the school's total cost of attendance (COA). COA = tuition plus fees plus an estimated cost of living plus a first year laptop. They'll repeat this process around January and you will get your other half.

Cash versus Loans: That's a personal decision. We all know that you pay more on debt than you make on savings, but that's not really the decision point here. I guess I would get as much as you can in loans and other financial aid. Then make a spending plan so that you don't burn through the disbursement before second semester starts. Hold the cash to the side to pay for things that you can't get a student loan for: getting hit by a car (yep, it happened to me my fist term), touring Argentinian wine country with your awesome new friends (couldn't go - was having surgery from car accident), a shopping spree after realizing that your nonprofit wardrobe won't make the cut for banking interviews (I thought my COA should have been ratcheted up accordingly, by no dice).

If it turns out that that $10M is just sitting there after year 2, then go ahead and pay down those loans! Or put a down payment on a house or whatever.

That's how I would have done it.
Show more

thanks for the helpful post!
User avatar
Michmax3
User avatar
Joined: 14 Oct 2009
Last visit: 30 Jun 2012
Posts: 353
Own Kudos:
265
Given Kudos: 53
Status:Current Student
Concentration: CPG Marketing
Schools:Chicago Booth 2013, Ross, Duke , Kellogg , Stanford, Haas
GPA: 3.8
Products:
My Reviews
Posts: 353
Kudos: 265
Financing Your MBA 22 Feb 2011, 21:54
Kudos
Add Kudos
Bookmarks
Bookmark this Post
aaudetat
Looks like I'm your banker boyfriend.

Your financial aid accounting will happen twice in the year, at the beginning of each semester.

Around August, they will take your total due for the first semester and then apply half of any scholarships, loans, or grants that you've received. If there's money left over, that's the part they disburse. You can take out financial aid up to the school's total cost of attendance (COA). COA = tuition plus fees plus an estimated cost of living plus a first year laptop. They'll repeat this process around January and you will get your other half.

Cash versus Loans: That's a personal decision. We all know that you pay more on debt than you make on savings, but that's not really the decision point here. I guess I would get as much as you can in loans and other financial aid. Then make a spending plan so that you don't burn through the disbursement before second semester starts. Hold the cash to the side to pay for things that you can't get a student loan for: getting hit by a car (yep, it happened to me my fist term), touring Argentinian wine country with your awesome new friends (couldn't go - was having surgery from car accident), a shopping spree after realizing that your nonprofit wardrobe won't make the cut for banking interviews (I thought my COA should have been ratcheted up accordingly, by no dice).

If it turns out that that $10M is just sitting there after year 2, then go ahead and pay down those loans! Or put a down payment on a house or whatever.

That's how I would have done it.
Show more

Thanks...appreciate the reply and hope you are fully recovered!

I should have enough cash to pay almost the first year's tuition and living expenses without touching the $10k in my emergency fund (unless I get hit by a car, but I would suppose that constitutes as an emergency lol) so I was wondering if I should put off receiving loan disbursements until I actually need it to avoid the interest accumulating during that time?
avatar
emr23
avatar
Joined: 05 Jun 2010
Last visit: 05 Jun 2012
Posts: 22
Own Kudos:
1
Given Kudos: 8
Schools:Kellogg 2013
GPA: 3.8
Posts: 22
Kudos: 1
Financing Your MBA 27 Feb 2011, 11:24
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I'm inclined to take go a little heavier on loans the first year, on the assumption that whatever I think I'll need for living expenses, I'll end up spending more. The one thing that's clear from talking to current and former students is that all the extracurricular activities can add up, but are unique experiences worth the cost. I want to keep an extra cushion on hand for the first year at least - and maybe I can borrow less the second year.

Even with enough cash to cover TCA for a year, I'd consider at least taking advantage of the Stafford Subsidized loan since interest doesn't accrue while in school. Unless I'm missing something, if you pay it back at graduation it's essentially free money for two years (less the origination fee which works out to something like $50).
User avatar
Michmax3
User avatar
Joined: 14 Oct 2009
Last visit: 30 Jun 2012
Posts: 353
Own Kudos:
265
Given Kudos: 53
Status:Current Student
Concentration: CPG Marketing
Schools:Chicago Booth 2013, Ross, Duke , Kellogg , Stanford, Haas
GPA: 3.8
Products:
My Reviews
Posts: 353
Kudos: 265
Financing Your MBA 28 Feb 2011, 10:17
Kudos
Add Kudos
Bookmarks
Bookmark this Post
emr23
Even with enough cash to cover TCA for a year, I'd consider at least taking advantage of the Stafford Subsidized loan since interest doesn't accrue while in school. Unless I'm missing something, if you pay it back at graduation it's essentially free money for two years (less the origination fee which works out to something like $50).
Show more

I'm guessing I probably won't qualify for the subsidized loan and the unsubsidized would accrue interest while in school
avatar
BabyBeagle
avatar
Joined: 30 Nov 2010
Last visit: 23 Jan 2012
Posts: 82
Own Kudos:
24
Given Kudos: 5
Schools:Haas Darden Ross Booth Sloan (that's right, HDRBS)
Posts: 82
Kudos: 24
Financing Your MBA 16 Mar 2011, 06:09
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Anyone consider structured loans from parents? Can retirement money be used for these?
User avatar
peppermuncher
User avatar
Joined: 08 Jun 2010
Last visit: 24 Jun 2011
Posts: 48
Given Kudos: 5
Posts: 48
Kudos: 0
Financing Your MBA 20 Mar 2011, 12:38
Kudos
Add Kudos
Bookmarks
Bookmark this Post
This thread is helpful. People havent mentioned any outside scholarships, are there well known MBA scholarships that people can apply for?
User avatar
jko
User avatar
Joined: 17 Mar 2011
Last visit: 25 Feb 2016
Posts: 411
Own Kudos:
221
Given Kudos: 5
Location: United States (DC)
Concentration: General Management, Technology
Schools: Duke '15 (WL) Kellogg '15 (D) Darden '15 (M) Ross '15 (WL)
GMAT 1: 760 Q49 V45
GPA: 3.37
WE:Information Technology (Consulting)
Schools: Duke '15 (WL) Kellogg '15 (D) Darden '15 (M) Ross '15 (WL)
GMAT 1: 760 Q49 V45
Posts: 411
Kudos: 221
Financing Your MBA 27 Mar 2011, 16:49
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hey I posted a thread about this, but it got no responses. Maybe this is a better place to ask it.

Does applying early decision to a school hurt your chances of getting financial aid / scholarships?
avatar
LaChloe
avatar
Joined: 06 Jan 2011
Last visit: 24 Dec 2012
Posts: 100
Own Kudos:
5
Location: Los Angeles, CA
Concentration: Marketing
Schools:All R2 - Booth(attending w/$), Kellogg(WL w/int then ding), CBS(ding w/int), Harvard(ding), NYU(admit), UCLA PT(admit), USC PT(admit)
GPA: 3.8
Posts: 100
Kudos: 5
Financing Your MBA 14 Apr 2011, 14:08
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Okay - how does it work if your parents are covering a significant portion of your MBA - for example all of tuition? Should they write me one big check a year? What are the cons? I'll need to take out a loan to cover the rest of my cost of living expenses.

Oh and why does FAFSA have a March deadline for CA residents. I haven't applied yet, am I screwed for this year?
avatar
emr23
avatar
Joined: 05 Jun 2010
Last visit: 05 Jun 2012
Posts: 22
Own Kudos:
1
Given Kudos: 8
Schools:Kellogg 2013
GPA: 3.8
Posts: 22
Kudos: 1
Financing Your MBA 19 Apr 2011, 11:37
Kudos
Add Kudos
Bookmarks
Bookmark this Post
From my understanding - if your parents write you a check the value over $13k will be subject to the gift tax. If they make the check payable to your school the gift tax doesn't apply.
avatar
sparkysan
avatar
Joined: 19 Oct 2008
Last visit: 27 Jun 2011
Posts: 6
Own Kudos:
1
Posts: 6
Kudos: 1
Financing Your MBA 04 May 2011, 17:23
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Has anyone been approved for the Direct Stafford/Plus loans? Do you have an idea of the general turnaround time for this? I submitted by SAR/MPN to my school almost three weeks ago, but haven't heard anything back.
   1  ...  7   8   9   10   11  ...  19