| Topic Name: |
Lower Tier Schools |
| Message Name: |
Student Loans |
| Date Posted: |
12/16/1999 |
| In Reply To: |
First of all you mistakenly assumed my posting applies mostly to top schools. The topic of this chat area is lower tier business schools. Clearly the ROI of them is not the same as that of the top 20 B-Schools. Your point about going part-time to business school and having the employer pay the tuition is well thought out. This might be the answer most people should pursue. However I disagree with your assumption that an indicvidual would only be able to save $20K while working as opposed to going fulltime to business school for two years. Maybe on yor paltry pre-MBA salary of $40K this is possible. I did tell you that I know many non-MBA's earning more than $80K yr with just bachelor degrees, and they graduated only about 1 year ago. Of course I also know many other with and without Bachelor degrees making only around $30K, but these aren't the savvy people who are considering an MBA anyway, and they are probably not smart enough to do so. So my calculations stand correct. I think it would likely take more than 5 years for one to catchup with a savvy non-MBA, who invested his money in the right place. my assumption includes, of course, that the student alone pays the expenses, not an employer. About that $75K signing bonus your going to get, what planet are you on. your lucky if you get $70K, unless your going to harvard. Most employers do not pay your tuition outstanding when hiring you. Thats your responsability, especially if there offering you a high salary to begin with.
Im just getting started. So those lower tiered business schools that cost $30K, and only increase your adjusted gross income by say $5,000 year aren't worth their cost. Cause $30K invested at 20 percent is more than $5K yr and grows as the principal grows. Then again if your employer is paying for it, go for it. The social value? Well its impresive, but as a status symbol it will mean less as one gets older and stops trying to impress people with educational credentials. Some people prefer to use money to impress other people or other things. So its all rather relative (the value of an MBA) if we don't use money as a primary measure. |
| Message: |
Do you realize how difficult it is to pay off 50k in student loans? Your three to five years is way too optimistic and unrealistic. Try eight to ten years. Without a significant bonus (which is taxed at a marginal rate of at least 40 percent), your take home won't allow you to devote that much resources to discharging the debt. Moreover, many of you don't factor in materialistic wants and needs. After all, going from 40K to 100K means that you'll probably get a nicer place to live; purchase newer furniture, stereos, and all of the accoutrements expected of an "MBA"; begin buying expensive clothes; drive a fancier car (you CANNOT drive domestic at some companies, especially with a platinum-MBA); and begin to live the bon vie. I've seen it happen to the most socially-conscious students. If anything, many of you will begin acquiring new debt, not shedding old obligations. Good luck!
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