SillyMuffin
SillyMuffin

Thoughts on Financing an MBA

Hey folks! Wanted to know your thoughts on how I should think about paying for my MBA?

Options -

  1. Take a loan for the entire amount
  2. Use my savings & Loan for remaining amount

Some points here

  1. By savings here, I mean investments (Stocks, MF), which I would have to liquidate
  2. Loan available for ~8.5%
Take a loan for the entire amount
Use my savings + Loan for remaining amount
43 votesexpired
13mo ago
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SwirlyTaco
SwirlyTaco

Loan. Education loans are cheapest and have good repayment moratoriums.

Don't liquidate investments - let them compound.

SillyMuffin
SillyMuffin

Thoughts on loan tenure? Longer the better?

SwirlyTaco
SwirlyTaco

Doesn't matter much tbh. Depending on the quantum min 3 max 5.

FluffyCupcake
FluffyCupcake
Amazon13mo

You will get IT rebate (if working in India post MBA) on interest payments, keep your money parked in bull run😛

P.S. - just a real life example, I finished my MBA loan after 5 years (planned to repay in 8 years) of MBA and made 80+% returns on investments. Had a repaid my loans earlier, returns would have been impacted significantly.

FluffyCupcake
FluffyCupcake
Amazon13mo

I*

SillyMuffin
SillyMuffin

Makes a lot of sense

FluffyPickle
FluffyPickle

Take a loan upfront, just keep paying the interest from first month so it doesn’t get compounded ..

I learnt this from my mistake ..
let your MBA get over then also start paying for your principal plus interest

PrancingNugget
PrancingNugget

Loan @ 8.5% is quite impressive. I remember they gave me @ 11.25% for my UG course.

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