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trader1
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Todays economic news. 11 Jan 2008, 17:33
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msday86
so does this mean i won't get into business school next year??? :( :(
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you're asking the wrong question.

will i get a job that can pay off my b-school loans?!
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Todays economic news. 11 Jan 2008, 17:50
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haha...that's exactly what branson and I were trying to argue in favour of earlier in the thread.

i think i'll set myself a 'psychological' limit to the amount of loans i'll be willing to take on for an MBA, and i'm just going to stick to it irrespective of how well the economy is doing in 2-3 years.

trader1
msday86
so does this mean i won't get into business school next year??? :( :(

you're asking the wrong question.

will i get a job that can pay off my b-school loans?!
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Todays economic news. 11 Jan 2008, 18:35
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lol good call trader1... "am i screwing myself by quitting a well-paying, safe job to go to business school with nothing more than an uncertain job market at the other end of my b-school tunnel???" should have been my question!
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Todays economic news. 11 Jan 2008, 23:19
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this whole thing is way too complicated for me to understand. :P

I know that any job after b-school will be better than what I do today, and I'm also glad I'm not going into anything banking/financial related. :)
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Todays economic news. 20 Jan 2008, 17:29
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Looking to revive this post...

I plan to apply to Bschool next year and have been pondering the effect of the economic downturn on application volume. It looks like there is a significant increase in apps this year, but the economy only seems to be getting worse. Will this lead to a greater increase in apps next year? Or will a more sustained economic downturn lead people to believe that post MBA prospects may not be so bright and its smarter to stay in their current job rather than take on 150k in debt? This year it seems that people are opting for the MBA. What about next year?
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Todays economic news. 20 Jan 2008, 18:10
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Good question, I'm wondering the same...am I going to be looking at a 5% acceptance rate at Harvard and Stanford?

IHateTheGMAT
Looking to revive this post...

I plan to apply to Bschool next year and have been pondering the effect of the economic downturn on application volume. It looks like there is a significant increase in apps this year, but the economy only seems to be getting worse. Will this lead to a greater increase in apps next year? Or will a more sustained economic downturn lead people to believe that post MBA prospects may not be so bright and its smarter to stay in their current job rather than take on 150k in debt? This year it seems that people are opting for the MBA. What about next year?
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Todays economic news. 21 Jan 2008, 03:40
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solaris1
haha...that's exactly what branson and I were trying to argue in favour of earlier in the thread.

i think i'll set myself a 'psychological' limit to the amount of loans i'll be willing to take on for an MBA, and i'm just going to stick to it irrespective of how well the economy is doing in 2-3 years.

trader1
msday86
so does this mean i won't get into business school next year??? :( :(

you're asking the wrong question.

will i get a job that can pay off my b-school loans?!
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see solaris, our theory gets support after all ;)

That's why I love the 20k/y scholarship from Ross. It would severely reduce my loans, and speed up the time to break-even. With money getting cheaper in the US, loans will be easier to handle and the burden not so heavy.

Also, I am with kryzak: me, I am very positive that what I will be doing post-MBA will be better than what I do right now. What might happen though, is that MBA salaries are going to stagnate or even fall slightly and that with inflation in the market - meaning that our real incomes will be lower than current MBAs.
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Todays economic news. 21 Jan 2008, 04:14
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branson


see solaris, our theory gets support after all ;)

That's why I love the 20k/y scholarship from Ross. It would severely reduce my loans, and speed up the time to break-even. With money getting cheaper in the US, loans will be easier to handle and the burden not so heavy.

Also, I am with kryzak: me, I am very positive that what I will be doing post-MBA will be better than what I do right now. What might happen though, is that MBA salaries are going to stagnate or even fall slightly and that with inflation in the market - meaning that our real incomes will be lower than current MBAs.
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I`m expecting a wage cut anyhow, because of shifting function and also because i intend to relocate to a country which commands lower avergae salaries than Japan. But I`m expecting a higher quality of life because costs will be lower in my target country(s). Should be able to get an apartment with staff quarters so that i can have a full time cleaner/nanny. Even if i don`t get an ex-pat package, the wife will (International school teacher), and that also means my childrens education are paid for as well.
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Todays economic news. 21 Jan 2008, 06:15
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Right now:
DAX: -5.4%
CAC: -4.82%
FTSE: -3.36%

Now money is evaporating...

I don't fell tomorrow is going to be a pretty day in US either...
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Todays economic news. 21 Jan 2008, 06:55
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BSE (Bombay Stock Exchange,INDIA) : (-7.4%) Biggest Fall in History.
kwam
Right now:
DAX: -5.4%
CAC: -4.82%
FTSE: -3.36%

Now money is evaporating...

I don't fell tomorrow is going to be a pretty day in US either...
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Todays economic news. 21 Jan 2008, 11:04
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I just want the value of my house to hold for a few more months so I have my b-school funds. It's still doing well right now.

For me, the loss of $250k (including lost salary) sucks, but if it means I will be happy with what I do in the future, it will be worth it.
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Todays economic news. 22 Jan 2008, 04:51
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ASX -7% 110 Billion AUD wiped off (gotta love the media)

sperinko
BSE (Bombay Stock Exchange,INDIA) : (-7.4%) Biggest Fall in History.
kwam
Right now:
DAX: -5.4%
CAC: -4.82%
FTSE: -3.36%

Now money is evaporating...

I don't fell tomorrow is going to be a pretty day in US either...
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Todays economic news. 22 Jan 2008, 05:44
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Just waiting for the NYSE to open. If the stocks crash i expect the Yen to go strong across the board. Setting up some currency trades now past the current support points for GBP/JPY USD/JPY and EUR/JPY. That way if it happens, i can take some profit out of it. If it doesn`t and the support lines remain, then my trades won`t activate.
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Todays economic news. 22 Jan 2008, 06:23
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WOW- the futures are down HUGE. This could very well turn out to be a 4% drop day.
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Todays economic news. 22 Jan 2008, 06:53
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And the fed cuts 75bps...

dosa_don
WOW- the futures are down HUGE. This could very well turn out to be a 4% drop day.
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Todays economic news. 22 Jan 2008, 07:04
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kryzak
I just want the value of my house to hold for a few more months so I have my b-school funds. It's still doing well right now.

For me, the loss of $250k (including lost salary) sucks, but if it means I will be happy with what I do in the future, it will be worth it.
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I am not as concerned about the markets, I dont have millions tied up there and my 401k and retirement stuff is where most of my investments are and they are all real long term. Much more important to my bottom line for school is how much profit I make on my house. So selling that is the most important thing. If I dont make a huge profit on it, thats fine...I have a huge amount of equity but will be willing to eat a very large chunk of that just to move it quickly.

The interest rate cut is awesome personally for two reasons. House loan rates will drop and that will hopefully help move my house quicker. And student loan rates should drop too...long term investments will bounce back well before retirement in 30 years but have a student loan rate that is a percent or two lower than it would have been last year will save a ton of money over the next decade which will be a greater benefit to my bottomline.
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Todays economic news. 22 Jan 2008, 08:16
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riverripper

The interest rate cut is awesome personally for two reasons. House loan rates will drop and that will hopefully help move my house quicker. And student loan rates should drop too...long term investments will bounce back well before retirement in 30 years but have a student loan rate that is a percent or two lower than it would have been last year will save a ton of money over the next decade which will be a greater benefit to my bottomline.
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Although I continue to read that loans might not get cheaper despite fed rate cuts...(looking for the source to back this up)
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Todays economic news. 22 Jan 2008, 08:19
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branson
riverripper

The interest rate cut is awesome personally for two reasons. House loan rates will drop and that will hopefully help move my house quicker. And student loan rates should drop too...long term investments will bounce back well before retirement in 30 years but have a student loan rate that is a percent or two lower than it would have been last year will save a ton of money over the next decade which will be a greater benefit to my bottomline.

Although I continue to read that loans might not get cheaper despite fed rate cuts...(looking for the source to back this up)
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arent loans pegged to the prime rate, which is based on the fed funds rate?
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Todays economic news. 22 Jan 2008, 08:21
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branson
riverripper

The interest rate cut is awesome personally for two reasons. House loan rates will drop and that will hopefully help move my house quicker. And student loan rates should drop too...long term investments will bounce back well before retirement in 30 years but have a student loan rate that is a percent or two lower than it would have been last year will save a ton of money over the next decade which will be a greater benefit to my bottomline.

Although I continue to read that loans might not get cheaper despite fed rate cuts...(looking for the source to back this up)
arent loans pegged to the prime rate, which is based on the fed funds rate?
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they are, but lenders are still free to increase their premium on top of the prime rate on private loans.
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Todays economic news. 22 Jan 2008, 08:39
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More important to rates though is going to be credit scores. To qualify for the best rates a 750 is pretty much going to be required these days. International students are going to have it the worst though because companies are so afraid of students not getting visa's and leaving the country without paying them back.

The lower the fed rate the lower the interest rate on loans will be for people that arent credit risks for the companies...a married person whose spouse is working fulltime and co-signs and has a very high FICO. Companies will compete for the highly qualified people with almost no risk of default these days, its the person with a 630 FICO with no co-signer who is going to be maxing out loans who are going to be screwed.

This year loans are going to be very tough for people with iffy credit and internationals without cosigners.
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