Anyone else getting cold feet?

Question

Not me. It looks like I will be paying a full retail price (almost entirely subsidized by a loan) and I have already accepted that fact. The way I see it, I will be investing a huge amount of money in something I truly believe in - me!

bb · Answer

Congratulations on admit - must be a relief. I got a full ride but I still had to borrow about 40K to spend on living expenses/travel/projects/etc. Having come out of the BSchool, had a hard time finding a good job. I had a job that paid bills but it took probably a year to get into the one that I wanted. You can take my example as your worst case scenario

It worked out for me and looking back - I don't think i would have changed a whole lot. Having a loan was not an issue but it is a psychological challenge. I basically just closed my eyes on it. The loans kick in about 6 months after graduation. Which by the way, MBA students have the lowest default rates in the industry (less than Law School or Med School or college or...), so this should be something to give you an indication that to fail on the BSchool student loan, you really have to be special Finally, I have not paid off my school loans still (been 5 or 6 or so years). I still have $20K hanging around because it is at 2-3% APR and my payment is $200/month. Assuming you borrow $100K, you will be at at 1,000 per month or slightly higher due to probably a higher interest rate. That's a meaningful amount, but only $12K per year if you look at it this way. (Though on the flip side, the worst part of the student loans, which many dont realize is that the interest accrues while you are at school, at least private loans do, so if you borrow 100K, you are really graduating with $110K of debt). My final words of wisdom having a wife and a kid and another one on the way - there is not going to be a break until I am 60 or dead, so if I did not have the MBA experience, I would not have had much outside of my job and I did not like my job that much for it to be my life. I will stop rambling for now.

tobascoRed · Answer

Congratulations on your admit! I'm sure there will be more to come. You just described my life over the past year or so. Also, I totally understand where you're coming from. I think I experienced about a minute of reservations when it hit me that I'll be leaving my cushy job, packing up my things, taking out huge loans, and moving halfway across the country where I don't know anyone. Then, I remembered all the reasons why I began this journey and all the hard work to see it through. When you think about it, it's a huge accomplishment and I'm sure you're proud. For me, I plan on taking a little break and refocusing my energy to make the most of my MBA experience. So you're not alone out there

On and best of luck on your upcoming Ross interview!!

AmrithS · Answer

Congrats

All I say is: Feel the fear and DO IT ANYWAY! Good Lucks :D

Av · Answer

The uncertainty and pre-MBA planning phase definitely introduces a new kind of anxiety, but it's a great problem to have. I'm really thankful to be receiving some scholarship assistance, but even at full price the MBA experience would be worth it for me. The short-term career ROI is pretty quantifiable, but I place a lot of value in the once-in-a-lifetime experience that I'm going to have for the next 2 years. Everyone has their own reasons for pursuing an MBA, but I think it's important to recognize where you're at in your life. Whether you spend the rest of your life in a demanding career, settle down with a family, or some other combination of events, it's likely that these two years will add a lot of fun to your life story. As bb mentioned, this is could be the last pit stop in your life for a long time.

The idea of making student loan payments of $1,000+/mo sounds pretty lame, but I've yet to meet 1 person who regretted pursuing their MBA, and I've talked to a lot of alums.

Here's to an adventure! :beer

dibblebun · Answer

change is always scary. but you should go for it.

Michmax3 · Answer

Thanks guys...yeah I know it's what I want, just my worrisome nature kicking in. Figured others must be feeling it too

vibhutirs · Answer

@Michmax3: I can imagine your worries. Uncertainly coupled with loan isn't easy thing. Though I haven't got my admit (still in process of preparing GMAT), I've started living like student to save as much as I can before starting my MBA.

Wish you all the best!

Wish you all the best!

TwoThrones · Answer

Congratulations! I know everything will be fine, just a change of pace.

CharmWithSubstance · Answer

Like others said, just do it. Here's another perspective:

I'm in my early twenties, and already have pretty much everything I want: a job in my dream industry, a wonderful husband, living in a beautiful downtown high rise. Yet I can't wait to get into business school. I realize what this means: temporarily being away from my family, the potential of not being able to get back in the industry, going back to living in the dorms/university housing, and forgoing quite a bit of income to go into debt. Friends think I'm crazy - what's the point of going to bschool if I've already reached my endpoint?

Because of what I missed out on in the process. If this was my life 5 years from now I think I'd be pretty psyched (though hopefully at a higher position in my company with more contacts, more money, etc). But I can't really imagine "settling" - can't imagine this will be my life day in and day out from my twenties to my sixties. I can't wait to go to bschool so I can meet tons of likeminded people, explore career options that I never thought I would (even if right now I think I'd want to come back to the same one), live in a different city, try new things, etc while I'm still young.

Immature reason? Perhaps. But hopefully a story you can read and get a little excited about your journey too!

southernstunna · Answer

OP u are going to Ross? There's no way you won't get a job, why would you even worry about it? You might not get NYC, but I've gotta think you will 100 percent be able to land a good paying job in Detroit or Chicago or something.

Michmax3 · Answer

Not sure yet, so far interviewed at Ross and accepted to Duke. I'm not really that worried about it, I've just never had any sort of debt before, so something new to me and also dreading the actual move and missing my family/friends. Super excited to have my brain stimulated again though, so bored with everything right now.

The way I'm deciding to look at it is, there are no guarantees in life. I mean even if I kept my job now I might still be looking for a new one in 2 years, whether by choice from boredom, or being forced to if I got laid off.

secondtime · Answer

Using an estimated debt of $140k, 40k subsidized at 6.8% and 100k unsubsidized at 7.8% the Sallie Mae Loan Calculator estimates payments of over $1600 a month. Probably wont qualify for the IRS tax deduction on interest of up to $2500 a year due to income restrictions.

Annual Post MBA real earnings year 0:
Gross: 100k
Student loan payments: 19,200
Real Earnings approx: 80,000
Federal Taxes approx 20K (you will be taxed at 100k rate)
Social Security 6.2k
Medicare 1.4k
Net approx: 52k

Retirement Savings of 15% gross earnings is $15,000
Net - Savings = Discretionary income of roughly 37k per year or $3083 a month
Note: This does not include health insurance expenses

vannbj · Answer

How depressing.

tortoiserun · Answer

Michmax, I feel exactly the same way you do (though I haven't received an acceptance yet). I'm really excited about going to b-school, but I do freak out from time to time about the money - I've never had debt either, moving far away, etc., especially as my friends are getting married and 2 close friends are pregnant. I think it's a totally normal feeling. And as females, there are other considerations for putting our lives on hold for two years, (especially since I'll be 31 when I graduate!) Nonetheless, I think it'll all be worth it.

zuperman · Answer

Hahahaaa…..This reminds me of my recent Bungee jumping experience in New Zealand.
My wife and I had travelled half the world to do all sorts of adventure stuff in NZ and we were all too eager to experience the thrill of life, the rush of blood etc. The excitement was sky high all the way to our journey to the peak from where we had to jump…..But the minute you reach the top and you see the height and the valley you realize what you have got yourself into. Your mind starts playing games with you and all your anxiety has turned into heart pounding moments. Your mind’s self defense mechanism takes control and the harness, the safety rope, the precautionary steps, all do not matter – your mind wants you to back out. You then start thinking of all the money you have put in this, the ignominy of facing all your friends if you chicken out and lastly the thought that you might not get this opportunity again….
This is the point where you are….on the edge ready to dive. There’s nothing to fear or worry about…with the skills and knowledge that you will build over the next 2 years you will only get better. Take the plunge and feel the excitement……

TwoThrones · Answer

Awesome analogy, although my friend invited me to go skydiving with him, I'm deathly terrified! (He'll probably force me to go anyway

)

chuyrulez · Answer

I think internationals may have more to worry about, as I am from Mexico I know that if upon graduation I cannot obtain a full time job offer I will have to return to Mexico and be paid about half (best case scenario) of what I would make compared to working in the USA. However I am sure that if I dont pursue my MBA due to fear of debt I will kick myself for the rest of my life. Sometimes you have to step back and say f$%$ it..... and just go for it....I feel the risk is well worth the reward.....

fbardolph · Answer

If you're in a low paying industry, the money thing shouldn't bother you. You know you'll come out making more. If you're in a high salary industry, you already know what it's like to get mad paper - the kind that pays off debts.
2 years of learning and socializing before you hit that 3-0, start a family, and settle down? How could you not do it? Short of a biotech revolution, this is your last chance to do the young-people-all-in-one-place thing. Feed your head. Surround yourself with smart people from the type-a diaspora doing rad stuff with their lives.
The hot pressure of I wish I had thaws cold feet.

Anyone else getting cold feet?

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