Pursuit of an MBA is an investment in your future. It will most likely require you to take on some educational debt. There are ways to limit the amount of education debt you accumulate as a student. The easiest way to reduce your overall debt is to reduce your discretionary expenses. It is much easier to live like a student when you are a student than to live like a student when you are earning $90,000 annually. If you were to reduce your student loans from $50,000 to $40,000 you would save approximately $121 per month in student loan payments.
By taking a proactive approach and exercising prudent borrowing strategies, you can help ensure success in meeting your personal and professional objectives affordably. Below we have listed suggestions to help you begin to plan and prepare to meet your educational costs.
Financial Readiness
- Request and review your credit report. Private loan approval is based on a review of your credit history. It is important to have a good credit record. Start by ordering a Free Annual Credit Report. You may also request your credit report on line or by contacting one of the major credit reporting agencies:
Equifax; 800 997 2493 or web: http://www.equifax.com/ Experian; 888 397 3742 or web: http://www.experian.com/ Trans Union; 800 888 4213 or web: http://www.tuc.com/
- Some lending institutions will base their interest rates on a borrower's credit score. You can check your credit score from Fair Isaac. Web: http://www.myfico.com
- Begin to search for outside scholarships. Private scholarships may be based on various selection criteria: academic achievement, religious affiliation, ethnicity, memberships, civic activities, hobbies or special talents.
- Develop a personal budget and stick to it. You may find it helpful to use software such as Quicken or MS Money.
- Begin to reduce your discretionary expenses. Dine out fewer times during the week, bring your lunch to work, dress for less and avoid impulse purchases.
- Start to save from each paycheck. Open a new school expense savings account and have money directly deposited from your paycheck.
- Eliminate any credit card balances you currently carry and only use your credit cards for emergencies only. Drowning in Debt? Credit counseling may help! Contact the Consumer Credit Counseling Service (CCCS).
- Don't take on any new debt.
- Don't use up all your savings to take a dream vacation before returning to school.
- Don't hesitate to ask family members for support. I'm sure you don't want them to foot the bill for your entire education, but on gift giving occasions, they can get you a backpack, a pre-paid long distance calling card or perhaps even buy you a new computer as a "going back to school gift."
- It is much easier to live like a student while you're a student than to live on a student budget after you've earned your MBA.
For further information, contact:
Financial Aid Office
109 Sage Hall
Johnson Graduate School of Management
Cornell University
Ithaca, NY 14853-6201
phone: 607 255 6116
email: Financial Aid
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