Posted by fmba
on Jan 28, 2015 in MBA Financing
| 0 comments
arlier this year, Americans broke $1.2 trillion in student debt. The growing student debt load is causing widespread economic ramifications, delaying home purchases, and influencing spending habits, typically for a decade after finishing college.
However, just because most graduates today are living with student debt for a large portion of their lives does not mean that you should. I made my last student loan payment 736 days after my graduation. That's just a little more than two years. And I did it while earning a salary within $5,000 of the median income level in the United States ($51,371). Here's how I did it.
Start paying during school.
The entire estimated cost of attendance for my MBA program at the University of Denver was $90,000-- of which $67,000 was for tuition. Even for high earners, that is a lot of money to have on hand to pay for tuition and living expenses--so taking out some student loans was the inevitable choice.
People told me that it would be impossible to work full-time and go to school full-time, but I didn't find that to be true. I kept a full-time job in finance while going to school full-time, and I graduated with a 3.74/4.0 GPA.
I had some savings going into school, but not enough to pay for everything as time went on. After I did some budgeting, I found that I could afford to pay around $7,000, roughly half of my tuition, each quarter out-of-pocket and get government-backed student loans for the remainder. By limiting my loans to Stafford loans, I knew I would be getting the best interest rate possible. And by paying what I could afford during school, I kept my total loan burden to less than $100,000...