Student loan question

Govtgirl

Govtgirl

Cathlete
I have decided to "fight back" at work, and one thing that I beleive will really help is for me to get an MBA. The problem is money. I would have to wait a year to even start the program if my company paid for it. That may be too late. If I pay, I can have an online MBA one year from now.

It would cost ....$30,000. Am I being rididulous to even consider a student loan? We already have a home equity loan out. I could get the payments deferred for 2 years.

The main reason I want this degree is, there will be an open management position in about year here. I don't want certain horrible people to have a chance at it. The one thing that would separate me from the pack is an MBA. If I still didn't get the job, well, I'd have an MBA to take elsewhere.

Am I crazy? If I wait til my company can pay, I can't start for a year, then it'll take a year from then. Student loans are low interest, right? And you can take a long time to pay back? Help!
 
Hi there,

This I think is a tough question. I would love an MBA for the same type of reason but the cost is so high and if I am going to do more schooling at this age - 35 then I want to spend the time on something that I am interested in more.

A few questions for you to consider -
1. What better chance do you think to get that job with an MBA?
2. How much will your pay go up for that job and how long will it take to re coup the money. I am one of 3 controllers and a CPA has not increased my pay and I am 98% sure an MBA would not increase my pay.
3. Are you in a bigger city that you can get a job that requires and pays more for MBA. I live in a town of 8,400 no bigger towns close so if I want to stay here an MBA is of little use and will not increase my pay.
4. Why is there a year wait with your company? Do you have to work there for so long? If so can you pay your self and have them reimburse you in a year?
5. How busy is your life now? Are you prepared to complete an MBA in one year or will that stretch out to 1 1/2 so the company can pay a portion. This will take a lot of time. I the upper level classes for my bachelor degree taking up so much of my time and I didn't work full time.


Typically student loans are lower interest and you pay a less amount each month than a normal loan. Not sure of the qualifications anymore but depending on how much money you make can you even get a low interest student loan.

If you are set on this check out a student loan vrs a another home equity loan. You can deduct both on you taxes but which would be more beneficial to you. The student loan I think is above the line income deduction with a cap and home interest is an itemized with no cap I think.

Good Luck with this. I'd say if you were very confident that your pay would go up and you would get the job or you could go to another company go for it. If not that is a lot of money.

Winter
 
Lisa, if there is any possible way to pay for your degree up front then do it. I financed maybe half my education w/student loans. I finished my MA 12 years ago & I haven't even paid off 25% of my loans. :(

Talk to the school's financial aid department & do research on your own. There are a lot of scholarships out there for non-traditional students, many of which the financial aid dept. doesn't even know about.

Or wait. A year seems like a long time but it'll go by faster than you think. Having your employer pay for your education is a huge benefit--take advantage of it!
 
I would consider the suggestions provided and also think that a year goes by really fast. I have student loans that I can't seem to pay down. If your company is willing to pay for it in a year, I would wait. The interest rates on student loans have climbed and they're not going down any time either. So it's really going to cost you much more than you think. Get the benefit out of your company. It's a greater benefit to you.

Rita
 
Not much help here. But I can tell you that congress is working on lowering student loans from 6.XX% to half that. I know that because I just talked to a financial aid person and she encouraged me to apply for FA, she said that in worst case scenario I would get a loan with low interest. Of course the best way is to have somebody else pay for your education. If I were you I would wait one year and I would be debt free plus you are not sure you will get that job in a year.
I am too going back to school after graduating 8 years ago.
 
Lisa, can you speak with your supervisor about considering paying for yourself? Perhaps they would agree to pay if you pass? If you tell your boss that you are willing to do this to move up in the company and that you want to know how they felt about it, what are your chances of getting the position you want, etc., I would think that would show them that you are dedicated and committed could only be positive. Also, if they don't think you would get that position with the MBA then you want to know that now.

Sonja
 
Thanks everyone, you're giving me great advice!
Since I work in the gov't, the rules are the rules. The only time you can apply for college benefits is in August, period, for the following year. They won't reimburse it either, unless you ask in August :( Gee, it's like they make it difficult on purpose....

Here's my situation...my supervisor is going to retire in a year. He may change his mind, of course and extend it, but supposedly that's the plan. I absolutely want to make sure that certain people DON'T get his job if they apply. I don't necessarily want to be a boss, but what I don't want even more is to have a corrupt person in that chair. Instead of hoping that some other good person applies, *I'll* be that good person.

If several of us in the group applied, and they gave it to an unqualified man with a 4 year degree, instead of me, with an MBA.....well, I think I'd have some leverage there. }( And I'm thinking this because I know I'm the better person for the job. I want things to be done the right way.
 
Just a comment about the interest. Congress passed legislation that will lower the interest rate on student loans. The Dept of Ed is in the process of interpreting the legislation and most of the changes will be implemented by July 1, 2008. I don't have the specifics but you could research on the internet.
 
Omg...that's great news. I'm glad I didn't consolidate my loans yet but I will do once they apply the lower interest. I'm in the UK right now so I didn't hear about this news!
 
Sometimes it seems like student loans are racket as bad as credit cards.

I graduated grad school in 1993 with my MA. I've been paying off my loan since 1993, with about 6-9 months of forbearance when I had some financial trouble. I have been paying on my loan for about 15 years now. My monthly payment increased about ten years back from $120 to $160 to just about $175. The amount is automatically deducted from my bank account each month, to avoid late fees and such.

I still won't be finished paying off my loan until 2016!!!! That's NINE MORE YEARS!

Granted, I would borrow the money all over again, as I see education as an investment in oneself. However - come on, people - 23 years to pay off a loan? x( If it was a car loan, I'd have it paid off in five years and be done with it!

Susan L.G.

P.S. I'm sorry for the rant, and going off topic, but I just had to let off steam. :p
 
Lisa, I don't know where you work or which level of government, but many positions in NJ do not require a masters (although it helps, but do require certifications. Also some positions that require certifications give you X number of years to get the cert after your appointment.

Is there any way you can do a less expensive certification/continuing ed course and then go for the MBA when you're qualified? That way you'd still have an edge for the position but you won't be draining your bank account or signing on to debt for life.
 
Hi,

This is a tough question and I think it is very specific to each individual. I think if YOU want to have this degree then it is worth the cost. I just finished my Master's degree in August of 2006 - I only took a semester off between my Bachelor's and my Master's too- so I am paying student loans off in the amount of nearly $50K. I am fortunately going to have most of mine paid by my employer through reimbursement though - but it is worth it to me even if I have to pay for it myself. My degrees don't necessarily even help me in my job either - but if I were to decide to leave, I'd have a much greater chance of moving on to a job with a similar or greater salary. I just turned 39 too, and when I went for my Bachelor's degree, I was the youngest in my class. You're not too old, and if it matters to you, I say go for it. And good luck!:7
 
One of my first questions is would an online MBA that takes only one year to obtain be recognized?

Would it even be beneficial to the position you would be taking on?

IMO I would be very skeptical.
 
THANK YOU, everybody, for your suggestions, and I'm taking them!

I've decided to get a "Graduate Certificate in Project Management". Sound good, huh? :p It's $5K (which I can swing, and my husband fully supprts!) and can be done in under 8 months. So, if this supervisor position opens up, I'll be the only one in my unit applying that has formal project management training. If the position isn't open by then, then it'll be "open season" to apply for the MBA benefits so I won't have to pay for the Masters. But I'll have *something* in my back pocket if this job opens up sooner rather than later.

There are 2 guys in my unit that I know will apply for this job. One is a detestable human being, he has a HS diploma, but he can BS with the best of them. The other has a BA, but he is very nasty person, and can never finish his projects on time. I don't want either one of them to get it. I can't depend that someone outside the unit will apply. So I figure, if it's all 3 of us going for it, I'll stand out with the graduate-level training, and have a better shot.

And I've recently found out that "Project Management" is a BIG buzz-word! }( All the muckety-muck managers LOVE the words and the concept. I'll be right in fashion. Who knew?! :7 Thanks again!!!
 
Way to go Lisa! Good luck with it......

And yes, "project management" is one of those buzzwords......I know at least 3 "project managers," they all do something different & I don't really understand any of their jobs. :p
 
Annette Bethel

If you can go back part time and pay for it out of pocket, go for it. I am in 71,000 worth of student loan debt for 2 Master's Degrees. What was I thinkin' when I went to Seminary? Avoid student loans like the plague.
 
Well I recently have gone back to school to earn a bachelor's degree and plan on continuing until I get my master's degree. The only way that I can do this is online because of a full work schedule and family committments. The school is accredited so I am not worried about it being recognized. Yes it is expensive but I have a sense of confidence and accomplishment now that I am earning my degree and you can't put a price tag on that. I am being a good example to my children and am showing them that if they want something it is possible with hard work.I am enjoying this journey and I am very happy with my decision to go back to school even if I never get a penny more, my patients will benefit from my increased expertise.
 
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