I want to go back to school for an MBA, but how can I afford the $50,000 price tag along with other bills?

Question

Already have some student debt and car loan, however have no credit card debt at all. Would like to try to purchase a home sooner than later to build some equity. I know going back to school to get an MBA will enhance my career and earnings potential, I am just struggling to get back in the classroom when it is going to cost me at least $50,000 for a top 25 rated program. The corporate company I work for will only take care of a small tax deductible portion of this expense and leaves me the rest. Any thoughts?

Answer 1

It's hard to manage it all, but it can be done. There's going to be a trade-off between companies that pay you well and companies that pick up a significant portion of the cost of grad school - you're probably not going to find a company that does both.

I finished school undergrad debt-free because I worked all the way through school. I bought my first home - a condo - at age 26, but struggled a bit and had to rent out a room for years to make sure I could afford the mortgage. And then, about ten years after earning my undergraduate degree, I worked for a company that picked up about two-thirds of the total cost of my MBA. I managed to maximize their portion by stretching my attendance over about 3 1/2 years taking night classes. But that was a while ago and the total cost for my MBA was less than $40M - I finished in 2000.

I recommend that you either bite the bullet and take on the debt in student loans, or get a different job with an employer that will help you out a bit more with a bigger portion of the expense. It is getting tougher, since most companies have pared down how much they'll allow for tuition reimbursement.

Something to keep in mind is that the MBA may not bring as much additional income as you think. Be sure all the while to be getting as much applicable work experience as you can in your chosen field. Good luck.

Answer 2

A $50K student loan for 15 years is only $360/month (assuming you can deduct the interest). If you think the MBA will increase your income more than that, then do it. The longer it takes you to get your MBA the longer before you get a better job. If you get too old, you might not get the job that you want (of course it is against the law, but they are not going to hire a 40 year old at an entry level job)

Take a look a the link below. It will show you some numbers from top schools

Answer 3

Whatever you do - do NOT go further into debt.

Just go to school on a part time basis. Take as many classes as your employer will cover - probably about 4 per year.

So it takes you a few extra years to get your MBA - BIG DEAL.

You will have extra work experience by then - and may also be in a good position to get promoted by the time you finish that MBA.

Answer 4

you can always take out more student loans. your current ones can go into deferrment while you are a student and this is the lowest interest rate i know of, good luck!!