All education financing is not created equal; there is a generally-accepted hierarchy that goes roughly like this: 1. First, the freebies: scholarships and grants. Obviously. 2. Next, your own cash savings - including Education IRAs and 529 plans. 3. Federal student loans - stafford loans - are your next best bet. These loans have fairly low interest rates (now fixed at 6.8%), you won't need to make payments while in school, the interest is tax-deductible, and there are very flexible repayment options once you've completed your education. With subsidized loans, the gov't pays the interest for you while you're in school. The interest on unsubsidized loans accumulates while during this period, and can greatly increase your prinicpal by the time you are ready to start repaying. (Hint: if at all possible, at least make a monthly interest payment while you're in school.) Maximum per year: $18,500. (Of which $8,500 can be subsidized. Subsidy is determined by need.) 4. Grad PLUS Loans. These are additional federal loans - PLUS used to mean Parent Loan for Undergraduate Students, but recent changes mean that grad students can use Grad PLUS loans to fund their own education. These loans have fixed rates, at about 8.5%. You can borrow as much of these as you want, up to the total annual cost amount (tuition, fees, and cost of living) determined by the school, less any other aid received. Unlike stafford loans, eligibility for these loans is not just based on your FAFSA - lenders will also consider your credit history. Your payments are derred as long as you are enrolled at least half-time. However, interest will be accruing. Nice repayment options. 4. Private student loans - these loans offer some of the benefits of federal loans, but not all. The interest will not be subsidized (again, do try to make payments to avoid capitalized interest), but you should not be required to make payments as long as you are enrolled at least half-time. Rates can be variable or fixed, and will vary a great deal. Maximum loan amounts will also vary. Your credit history will certainly be used to determine eligibility. Repayment options will vary. 5. Non-student loans: home equity, personal loans, credit cards. Yikes! Use wisely! No special repayment options, and payments due within 1 or 2 months after disbursement. Generally speaking, you should always shop around for federal student loans. While the government sets the rates and many other features, different loan companies offer different kinds of borrower benefits, including rate reductions. Since new laws went into effect last summer, the word on the street is DEALS DEALS DEALS, so look for the lender that can offer you the best package. And care for your soul - lenders make money off your loans; think about who you want to have your money. While schools may have preferred lenders, you can borrow from ANYONE, no matter what line they school feeds you. At my credit union, we've been referring people to https://www.MyRichUncle.com for private loans. Private loans especially deserve lots of scrutiny as they can vary so much from one lender to a next.

Private loans can have variable rates. So while it might be low now, it can skyrocket later. The Direct and Grad Plus have fixed rates. Weird, the above post is 100% copied and pasted from a book, Case Studies and Cocktails.

Last visit was: 20 Nov 2025, 01:41

It is currently 20 Nov 2025, 01:41

Toolkit

Business School and MBA

Business School Life

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

Request Expert Reply

Confirm Cancel

Nov 20
UCR MBA Impact - Live Q&A with UCR AdCom & Student
07:30 AM PST
-
08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
Nov 20
CBS vs. NYU Stern vs. Yale SOM: What Admissions Really Wants
10:00 AM EST
-
10:30 AM EST
If you’re applying to Columbia, NYU Stern, or Yale SOM, you need more than strong stats. Each school defines “leadership” differently, and your essays must reflect that. Join Sia Admissions founder, Susan Berishaj on November 20th
Nov 20
Essay Workshop: Mastering Essay Questions
09:00 PM IST
-
10:00 PM IST
Join our free expert-led Essay Workshops to discover how to choose impactful stories, highlight your core values, and align your background with each school’s distinct culture, making every word truly count.
Nov 21
Emory MBA Info Sessions (Online)
08:30 AM EST
-
09:15 AM EST
Get the inside scoop on what makes Emory’s Goizueta Business School great, learn how you can present a strong MBA application, and connect with an Admissions Director to get your questions answered.
Nov 21
Live Coffee Chat- The MBA Application Essays: How to Master the 3 “WHY” Questions That Define Your Story
09:30 PM IST
-
10:30 PM IST
Learn how to craft powerful, authentic essays by mastering the 3 “WHYs” every top MBA program looks for: Why MBA, Why Now, and Why This School.
Nov 24
FREE Prospects Evaluation!
08:00 PM PST
-
09:00 PM PST
Inquire for a free profile evaluation and guarantee statement for possible admits and scholarships!

Back to Forum

Create Topic

Financing Your MBA

1 ... 11 12 13 14 15 ... 19

AvgIndianGuy

Joined: 13 Dec 2012

Last visit: 29 Feb 2016

Posts: 104

Own Kudos:

Given Kudos: 19

Posts: 104

Kudos: 79

11 Jan 2013, 02:05

Kudos

Bookmarks

Hi I am an Indian thinking about doing MBA in US . I have a few questions which are making me kind of tense . Can you please help me answer them .

What is the current scene for Indian Students studying in (M7 +Next 8) Business Schools in US?Are they able to get good jobs after MBA ?How much role does Visa sponsoring play in final FT Recruiting for Indians there who doesn't have work permit/green card ?Is the competition tough for foreign graduates (~around 40% of the class I guess ) as the firms may have limited quota for foreign students.
How are the job prospects for MBA graduates in the current market ?(for foriegn students especially )

I am planning on my MBA and I was shortlisting schools .I would like to know your honest opinion on this.Is it worth taking 100k + loan and apply to US MBA schools.I don't have that kind of money but I am willing to take risk if it really worth?
and approximately in How much time an average MBA graduate is able to repay that loan .
THANKS for your help answers in advance

Squish

Joined: 10 Jan 2012

Last visit: 15 Mar 2020

Posts: 28

Own Kudos:

Given Kudos: 5

Status:Waiting...

Concentration: Strategy, International Business

Schools: Duke '15 (M$)

GMAT 1: 750 Q48 V42 Verified score

Schools: Duke '15 (M$)

GMAT 1: 750 Q48 V42 Verified score

Posts: 28

Kudos: 10

15 Jan 2013, 05:14

Kudos

Bookmarks

Hi all,

Not sure if anyone can help me, but I'm looking at funding options. I'm from South Africa. I have a co-signer, but they're Canadian, not American. Do you know of any US banks that would give loans with Canadian co-signers?

Thanks

igzolt

Joined: 24 Aug 2011

Last visit: 26 Apr 2013

Posts: 21

Own Kudos:

Given Kudos: 4

Location: United States (MA)

Schools: Stanford '15 (D) HBS '15 (D) Wharton '15 (A)

GMAT 1: 750 Q49 V44 Verified score

GPA: 3.2

Schools: Stanford '15 (D) HBS '15 (D) Wharton '15 (A)

GMAT 1: 750 Q49 V44 Verified score

Posts: 21

Kudos: 6

15 Jan 2013, 09:08

Kudos

Bookmarks

not sure if this is representative. i am trying to get a private loan from Sallie Mae and they said they don't accept applications until 2 months prior to disbursement? my plan is to take advantage of the low interest rates and get a variable loan for the first year. if rates skyrocket, i'll prepay the most i can and switch to the stafford loan my second year.

Moodyz

Joined: 30 Apr 2012

Last visit: 08 Feb 2014

Posts: 43

Own Kudos:

Given Kudos: 4

Posts: 43

Kudos: 5

18 Jan 2013, 16:25

Kudos

Bookmarks

This thread is amazing.. I highly recommend reading through from the first post to the end.. very educational.

A private vs public loan question:

For people who have no intention of working in the government and are confident in job prospects, are there any other reasons for getting a public loan over a private one? I'm curious because rates for fixed private loans with cosigner seem lower than Stafford or Grad PLUS..

pancaketown

Joined: 21 Mar 2013

Last visit: 08 Jan 2016

Posts: 28

Own Kudos:

Given Kudos: 5

Schools: Kellogg '15 (M) Darden '15 (A) Tuck '15 (D)

Products:

Schools: Kellogg '15 (M) Darden '15 (A) Tuck '15 (D)

Posts: 28

Kudos: 4

24 Mar 2013, 18:35

Kudos

Bookmarks

Moodyz

Private loans can have variable rates. So while it might be low now, it can skyrocket later. The Direct and Grad Plus have fixed rates.

hotelganpati256

Just considering the price of an MBA is enough to give you a situation of angina. But before you start looking for your insurance plan cards and contacting 911, keep in mind that this is an economical commitment in your upcoming, an economical commitment that should educate you the program of determining an ROI (return-on-investment), which is almost certainly beneficial.

Funding for an MBA can come from a wide range of sources. The most genuine ones are economical aid/loans—federal and private; individual benefits, allows and fellowships, and work-study roles. The most impractical sources of money? Highly-paid part-time perform, that really wealthy dad, on-line online texas holdem, day dealing, and core dealing (we’re joking, of course).

And while everyone has to determine how to pay, there is no worldwide strategy. This aspect of MBA preparing is exclusive to you. Your sources, university, citizenship, and record of credit will all perform significant tasks in interpreting your transaction strategy.
------------------------------------------------------------------------------

Weird, the above post is 100% copied and pasted from a book, Case Studies and Cocktails.

EBM

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)

Posts: 750

Kudos: 163

26 Mar 2013, 18:23

Kudos

Bookmarks

pancaketown

Weird, the above post is 100% copied and pasted from a book, Case Studies and Cocktails.

Thanks for the heads up.

aagiants

Joined: 29 Dec 2011

Last visit: 01 May 2013

Posts: 23

Own Kudos:

Posts: 23

Kudos: 2

26 Mar 2013, 21:24

Kudos

Bookmarks

Can someone comment on this plan?

I live in CT and have not purchased any 529. They have a 1-1 deduction up to 5k. I am planning on going to school in September. Is it possible to fund my 529 this year and then just withdraw it the same year? (I would probably withdraw the same day, so there is no investment risk)

i could do this for 2 years, and save 600-700 in CT income tax

lilmisskate86

Joined: 01 Aug 2012

Last visit: 25 Apr 2013

Posts: 3

Own Kudos:

Schools: CBS '15 HBS '15 Marshall '15 Haas EWMBA '16 Stanford '15 Yale '15

Posts: 3

Kudos: 7

25 Apr 2013, 15:28

Kudos

Bookmarks

Hi All,

I am not seeing anything addressing a particular problem I am having with the student loan process so I am hoping someone on this thread may have some knowledge. My tuition and mandatory fees are going to be covered by my parents but I will need to take out loans the cover the rest. Most of the student loans I am seeing disburse to the school you are attending and then the office of financial aid hands over the amount of money that remains after tuition fees etc have been deducted. Having spoken with a Columbia Business School Financial Aid Officer briefly they indicated that they are obligated to subtract the tuition first and then disburse the loans even if the tuition has already been paid.

For tax reasons my parents have to pay the school tuition directly or else the money given to me or paid off on my loan is subject to a gift tax on them or income tax for me. Has anyone else had this type of situation and if so what was the solution? Were you able to get a private lender to disburse a student loan directly to you or work something out with the financial aid office at your school?

Thanks!

TheNona

Joined: 12 Dec 2012

Last visit: 18 Nov 2013

Posts: 199

Own Kudos:

201

Given Kudos: 181

Concentration: Leadership, Marketing

Schools: Desautels '15 (A)

GMAT 1: 540 Q36 V28 Verified score

GMAT 2: 550 Q39 V27 Verified score

GMAT 3: 620 Q42 V33 Verified score

GPA: 2.82

WE:Human Resources (Healthcare/Pharmaceuticals)

Schools: Desautels '15 (A)

GMAT 3: 620 Q42 V33 Verified score

Posts: 199

Kudos: 201

25 Apr 2013, 17:30

Kudos

Bookmarks

any data about Canada ? what are the options for financing an MBA in Canada?

DCTech87

Joined: 11 Jan 2013

Last visit: 17 May 2016

Posts: 47

Own Kudos:

Given Kudos: 4

Concentration: Entrepreneurship, Strategy

Schools: Stanford '15 (D) CBS '15 (M) McCombs '15 (A) Darden '15 (WA) Sloan '15 (D) Kellogg '15 (A)

GMAT 1: 760 Q51 V41 Verified score

GPA: 3.55

WE:Consulting (Energy)

Schools: Stanford '15 (D) CBS '15 (M) McCombs '15 (A) Darden '15 (WA) Sloan '15 (D) Kellogg '15 (A)

GMAT 1: 760 Q51 V41 Verified score

Posts: 47

Kudos: 13

26 Apr 2013, 09:42

Kudos

Bookmarks

lilmisskate86

lilmisskate86 - are you repaying your folks after all of this? If so, you can structure this as a loan with an absurdly low interest rate (not like they're high right now anyways). That way instead of the paying a gift tax or losing out on financial aid, you get the maximum value of your debt and get to take a tax deduction for interest and school tuition payments.

If they're just paying tuition and mandatory fees, then I'm incredibly jealous

. One way to deal with that may be to set up a trust with you and your siblings as beneficiaries, although this will also effect how the school views your assets and may be subject to the same tax (I'm unclear about this). Regardless, see you next fall at CBS.

DMNY31

Joined: 01 Oct 2012

Last visit: 02 May 2014

Posts: 94

Own Kudos:

Given Kudos: 19

Location: United States

Schools: CBS '15 (D) Kellogg '15 (D) Cnsrtm-Tepper '15 (M) Cnsrtm-Goizueta '15 (A) Goizueta '15 (A$) Tepper '15 (M$)

GPA: 3.2

WE:Operations (Finance: Investment Banking)

Schools: CBS '15 (D) Kellogg '15 (D) Cnsrtm-Tepper '15 (M) Cnsrtm-Goizueta '15 (A) Goizueta '15 (A$) Tepper '15 (M$)

Posts: 94

Kudos: 26

26 Apr 2013, 13:55

Kudos

Bookmarks

Have any Americans started shopping around for private loans? What are the popular lenders offering the best rates? Sallie Mae looks pretty good right now.

Is there some sort of search engine or comparison tool for this type of thing?

dilbert99

Joined: 19 Apr 2011

Last visit: 25 Jul 2013

Posts: 44

Own Kudos:

Given Kudos: 6

Schools: Haas '15 (A) HBS '15 (D) Wharton '15 (S)

Posts: 44

Kudos: 12

30 Apr 2013, 19:04

Kudos

Bookmarks

Similar to the last question - just curious if any other Americans have priced out private loans? If I can get a 2-3% interest rate loan from Sallie Mae I am totally rocking that.

Unfortunately, I didn't receive any scholarship money but I have excellent credit and quite a bit saved up (enough to pay for my entire two years). Maybe it's the inner financial geek speaking :-D

, but I would totally finance my education at ~3% since I'm pretty confident that the return on my investments will be above that. I can always payoff the loan in full immediately if interest rates skyrocket.

ctgmat123

Joined: 14 Jun 2010

Last visit: 03 Nov 2013

Posts: 83

Own Kudos:

155

Given Kudos: 5

Location: United States (NY)

Concentration: Finance, International Business

Schools: Duke '15 (M)

WE:Investment Banking (Finance: Investment Banking)

Schools: Duke '15 (M)

Posts: 83

Kudos: 155

01 May 2013, 08:55

Kudos

Bookmarks

Discover Financial and Wells Fargo have competitive rates. I have excellent credit and my parents offered to co-sign, so based on what I've seen it's definitely worth it for me to mix in a healthy amount of private variable-rate with the fixed government. I'm of the opinion that rates are going to remain low for the next few years, at minimum.

dilbert99

Joined: 19 Apr 2011

Last visit: 25 Jul 2013

Posts: 44

Own Kudos:

Given Kudos: 6

Schools: Haas '15 (A) HBS '15 (D) Wharton '15 (S)

Posts: 44

Kudos: 12

01 May 2013, 10:53

Kudos

Bookmarks

ctgmat123

I'm of a similar opinion. If I may ask, what rates were they quoting you for both fixed and variable? Also, how much did having a cosigner help? My parents are pretty anti-debt but I might be able to convince them if it gets me a lower rate.

mappleby

Joined: 04 Oct 2011

Last visit: 08 Nov 2018

Posts: 432

Own Kudos:

134

Given Kudos: 150

Concentration: Finance

Schools: Booth '15 (II) CBS '15 (M$)

GMAT 1: 700 Q44 V41 Verified score

GMAT 2: 750 Q48 V46 Verified score

GPA: 3.03

WE:Project Management (Military & Defense)

Products:

Schools: Booth '15 (II) CBS '15 (M$)

GMAT 2: 750 Q48 V46 Verified score

Posts: 432

Kudos: 134

05 May 2013, 11:53

Kudos

Bookmarks

Does anybody know if you are required to take the full unsubsidized loan amount if you take the federal loans? I am looking at my finances and depending on the job my wife gets I might need some loans but not a full $20,500. Can you accept federal loans and ask for just $10,000 for example?

EDIT: In case anybody else is wondering, I called the financial aid office and they said yes. You can accept any amount up to $20,500 in Federal Loans.

jko

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 Verified score

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 Verified score

Posts: 411

Kudos: 221

10 May 2013, 10:14

Kudos

Bookmarks

emr23

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.

This isn't quite correct. You have to report gifts over $13k but you won't necessarily have to pay taxes on it. Each person has a lifetime gift exclusion of over $5 million dollars that you can give to whoever you want without having to pay gift tax on it. Additionally, each year you get $13k (recently upped to $14k) that you can give to whoever you want without it counting against your lifetime gift exclusion (of more than $5 million). That's why you have to report gifts over $13k, so that the IRS knows how much of your $5 million exclusion you've used.

It's called an 'exclusion' because that amount is excluded from gift taxes.

ctgmat123

Joined: 14 Jun 2010

Last visit: 03 Nov 2013

Posts: 83

Own Kudos:

155

Given Kudos: 5

Location: United States (NY)

Concentration: Finance, International Business

Schools: Duke '15 (M)

WE:Investment Banking (Finance: Investment Banking)

Schools: Duke '15 (M)

Posts: 83

Kudos: 155

20 May 2013, 13:39

Kudos

Bookmarks

dilbert99

ctgmat123

For Variable, I think i was about a 5.5% to start before having a co-sign, and 3.25% with (Prime + 0)

lb2015

Joined: 28 Feb 2012

Last visit: 13 Feb 2014

Posts: 180

Own Kudos:

Given Kudos: 107

Status:Yale SOM 2015!

Location: United States (MA)

Schools: Darden '15 (A) Duke '15 (WL) Sloan '15 (D) Tuck '15 (D) Yale '15 (M)

Posts: 180

Kudos: 65

24 May 2013, 08:46

Kudos

Bookmarks

Does it make sense to apply with a co-signor if they have a lower credit score than you and/or are retired?

My credit is decent (735) given my super short credit history, but I know that a lot of people suggest getting a cosignor for private loans. My dad is maybe the only one who would make sense. His credit is about 50-60 points lower than mine (doesn't have a credit card or any loans or outstanding debt) and he's retired and living off investment income and social security.

Neither of us can imagine it'd make much sense for him to apply with me, and I don't want to unnecessarily have his credit pulled if it wouldn't make a difference. Anyone have experience with this?

bartthecartoon

Joined: 28 Jan 2012

Last visit: 30 May 2014

Posts: 44

Own Kudos:

[1]

Given Kudos: 1

GMAT 1: 710 Q45 V42 Verified score

GPA: 3.91

GMAT 1: 710 Q45 V42 Verified score

Posts: 44

Kudos: 8

[1]

24 May 2013, 16:36

Kudos

Bookmarks

lb2015

Even though his credit is lower than yours, its still not horrible. From the bank's perspective there is a chance that you could have financial difficulties while he is still able to make payments on the debt, which means that they have a better chance of getting their money back than if they relied only on you for repayment.

It may not make as much of a difference to your interest rate as it would if he was the one with a higher credit rating, but it is still better than not having a cosigner.

lb2015

Joined: 28 Feb 2012

Last visit: 13 Feb 2014

Posts: 180

Own Kudos:

Given Kudos: 107

Status:Yale SOM 2015!

Location: United States (MA)

Schools: Darden '15 (A) Duke '15 (WL) Sloan '15 (D) Tuck '15 (D) Yale '15 (M)

Posts: 180

Kudos: 65

28 May 2013, 09:22

Kudos

Bookmarks

bartthecartoon

lb2015

Thanks for your advice! I spoke with a Discover rep who basically confirmed everything that you said and suggested trying a co-signer just to see. Still waiting to hear back on my final rate—on my own, I got prime+2.75% (6% currently), so I’m hoping that will go down once he’s added.