I am planning to do MBA soon. The tuition fee for the college is around $60K total . If I have around 10K in savings account. what is a better way to pay for fee.
1. to take a full loan or
2. to pay some with this saving and take rest as loan
and in both cases can I get the required amount as loan..??
what are the terms and conditions I would be required to fulfill to get the loan.
and do I need to show that I have $60k as a backup in bank accounts (mine / any relatives)in case I wouldn't be able to payback.
I think that I should keep the 10K safe aside for some other unforeseen purposes. Is it fine..
what do you think.
Thanx in advance for sharing ur knowledge.
2006-06-21 05:08:31 · 6 answers · asked by itsmesavvy 1 in Education & Reference ➔ Financial Aid
I'm a software engineer. earn 50K pa.
I hope I'll get a good rise after completing my MBA.
2006-06-21 05:17:18 · update #1
Talk to some other people in your field that have MBA's and see if it is paying off for them.
I work at a college and I am getting a lot of MBA's and even lawyers coming back to get certified to teach. The MBA never panned out for them.
2006-06-21 15:20:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Every lender and every loan will have slightly different criteria, terms, and conditions. Some lenders won't require you to prove that you have income or savings -- many just want to know that you have good credit (i.e. a history of paying on-time, few missed payments, and no more debt that you can handle).
*Some* lenders may require you to prove that you have income, sure, but they generally won't expect you to prove that you [or parents/friends] have the savings to pay off the loan (in other words, if you applied for $60K, they won't expect you to prove that you then *have* $60K.. that seems counterintuitive).
Get a copy of your credit report and see where you stand. Look on some lenders' websites to see what factors they consider when deciding whether to approve or deny an application. Then pick a lender whose terms/conditions play to your strengths. You might want to start with the list of private loan lenders on FinAid's website: http://www.finaid.org/loans/privatestudentloans.phtml .
If you feel more comfortable keeping your $10,000 in savings, do so -- how you spend your money is up to you. If you borrow the full cost of your education and *later* find out that you didn't use your $10K, consider paying off a lump sum of your loan. If you are that disciplined (financially), that may be the best way to make sure that you borrow only what you need while leaving yourself a "safety net."
2006-06-21 05:25:08 · answer #2 · answered by FinAidGrrl 5 · 0⤊ 0⤋
I would first talk to the financial aid department at your school. They will have all the specifics and details.
I would save/invest the 10K for exactly what you said ... unforeseen purposes.
Students loans have a low interest. If you use you savings to take out a smaller and then later have some large bill that you decide to pay with your credit card that would be bad.
Now if you're talking about non-student loans, then I would want to kept that as small as possible. So in that case use your savings.
2006-06-21 05:16:57 · answer #3 · answered by cw 3 · 0⤊ 0⤋
Sallie Mae has loans for MBAs....you can find all the info on loan limits, eligibility, payment terms, etc. at http://www.salliemae.com/get_student_loan/find_student_loan/grad/business/
It's usually a good idea to get federal loan money first (typically the lowest interest rates) and then get private loan money, particularly if you have a co-signer with a good credit rating.
There's never a guarantee that you'll get a raise with an MBA....so borrow as little money as possible.
Good luck.
2006-06-21 06:07:23 · answer #4 · answered by cbh107 1 · 0⤊ 0⤋
You only have to demonstrate financial position if you are studying in the U.S. and are not a citizen or resident national. Basically, we don't want to have impoverished students stuck here.
By the price tag, I see you're going with one of the top twenty schools. Excellent. This is well worth going full-time to finish more rapidly and get more out of the degree.
If you decide to go full-time,take the loan and keep the savings, using a little bit to pay down interest every month.
If you decide to go part-time, let your employer take care of it.
2006-06-21 08:05:09 · answer #5 · answered by Veritatum17 6 · 0⤊ 0⤋
take a loan, im sure when you graduate and get a good job you'll be able to pay it back in a few years. (hopefully), but thats what im gonna do. and also work part-time on the side if you can. helps out a lot.
2006-06-21 05:12:14 · answer #6 · answered by Anonymous · 0⤊ 0⤋