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Cost of living

by chet steadman » Mon Apr 21, 2008 4:03 pm
Hi, I think this is more of a concern to me than admissions (though both terrify me). How do b-school students survive while paying such ludicrous sums of money?

In my case, I would like to attend an $50k/year school, but my life's savings (excluding 401k) don't even approach $50k. It just doesn't add up for me.

I guess this is too general of a question, but what are ways of dealing with this disparity? Are schools more generous with loans/grants that I've been led to believe?

Thanks
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by VP_MBA_Guru » Mon May 05, 2008 8:41 pm
Hi Chet -

One of the most painful experiences of the MBA program is your first financial aid orientation (usually called 'Paying for your MBA' or something like that). That is when reality hits and you realize that all the hard work you put in to get into a top program is nothing compared to the students loans you will be paying for the rest of your life!

Haha.. sorry to be a downer! Seriously though, most financial aid include funds to cover room and board. This amount is usually adjusted for the cost of living (i.e. NYC-based schools would have higher allocated amounts than a school in a lower cost of living town). So if you take full student loans, you shouldn't need to tap into your savings.

Whatever this amount is (check with each school's financial aid dept for exact figures) is usually enough to cover basic expenses - apartment, utilities, beer money, ect. However, I believe most of my classmates tapped into our savings to pay for extra-curricular fun (shopping, trips with classmates, golfing, more beer). Think about it, when else are you going to have 2 years 'off' - esp as a student again! Why not use a bit of your savings to enjoy your time!

Regards,

NP
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by AleksandrM » Thu May 08, 2008 7:25 pm
My fiance and I were discussing this very issue tonight. My situations is a bit different in that I am applying for MS in accounting programs, which are all one year. However, they are all located in cities that do not exactly have a low cost of living. In fact, an average for a studio around the schools is between $850 and $1000+. In addition to this, I would have to pay for utilities and groceries (in addition to the meal plan). Certainly, it is only for a year and the overall program cost is about $50,000. However, with everything taken together, I will be nearly $70,000 in debt. I have heard it said before that schools provide financial assistance based in living expenses. However, how much is this true with business masters programs outside of MBA?
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by VP_MBA_Guru » Thu May 08, 2008 7:45 pm
Hi Alex...
Double check - but I believe most financial aide includes funds to cover living expenses, including for Masters of Acc students.

You should be able to get that information fairly quickly by contacting the school's financial aide office or checking on their website.

Regards,

NP
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by VP_Tatiana » Thu May 08, 2008 9:41 pm
Hi Chet,

Business school does seem to bring with it a frightening amount of debt. I will be carrying $58K of school debt when I graduate in September... and then I have to start paying it back 6 months later.

One reason I chose Babson (#1 in entrepreneurship) over Wharton (#2 in entrepreneurship, but up there in so many other fields too) was that Wharton's eMBA program was $168K. Babson's Fast Track program doesn't seem like much when I put that into perspective. What's nice about both as eMBA programs, you keep working while you are in school. The minus side is you don't see campus life, join clubs, do business plan competitions, etc.

It also helps to do the math regarding how much more you anticipate to make each year with your MBA, amortized over your working life. I think mine will pay itself back quickly.

Best wishes,

Tatiana
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by beardown027 » Sat Jun 28, 2008 10:19 am
Tatiana,

How did you find Babson's preperation for the "real" world. ie career placement, alumni connection, etc.

thanks!
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