mediatech6 wrote:
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?
Yes, it could make sense to do so. Evaluating this as the cost of your source of funds could lead to the conclusion that it is a good option to take on a loan for the MBA.
Money is fungible. Thus, the savings you have could go into the business or personal expenditure you would take on in the near future, if the interest and terms on the student loan would be more favorable than that for the business loan/personal loan, then it could make sense to take on the loan.
Another reason would be the preference to maintain a certain level of liquidity throughout, while doing the MBA. This could be as emergency funds, especially if you have dependents, or if you are looking for an investment opportunity.
Look forward to hearing what you did and how you feel about your decision. All the best!