US MBA Loan and Re-Payment->Worth It? A Discussion

[mkarthik01]

Hi

The house that my parents own, is under a loan.
So the documents are with the bank.

Is it still possible to use this house as collateral for taking a loan. [ I guess it can't be done ]


Karthik

[raj_deb]

Hi,

Have gone thru all the posts in this thread. What I gather is that i one plans to stay back in the US for a few years after graduation, he can pay off the loans taken.

But as per the above post with H1B being a lottery, does taking a loan with the hope of payong it off by working in the US, not then boil down to a lottery too?

Guys out there, who are in the states, or others with knowlegde on this............Pls respond. This would be the make or break question for my choice of schools.

thanks,
Raj

[destiny_beckons]

Originally Posted by kgkid

aim-wsc is absolutely right. I was talking about repaying the loans.
It sure takes a lot of time and that is why sometimes scholarship becomes a very important swing factor for applicants. Sometimes, a person's spouse may also help by contributing towards the expenses. That sure helps a lot.
You would be surprised but a good 'ol friend of mine from IIT Mumbai got a full ride at McCombs and left Kellogg. That is so absurb. But, if you know his direction you would really appreciate the decision. He wanted to be in India as soon as he could and in IT. McCombs is damn famous in IT. He went back to india after graduation with 0 loans and started working as a BDM in SAP-India office.
In short, you would be suprised that many great Indian candidates ditch top 10 not because of money but the 10 years after MBA that they would have to live in US or a developed nation to pay back. The fastest route is finance and consulting but at the expense of family life. So, one has to stop and really think "Is it worth it?"
have your read the book - Monkey Business: Swinging Through the Wall Street Jungle . Read it. nice book on investment bankers.

I was just wondering where i would find a ranking list based on the specialities... can someone suggest a good place to find that... (I know this query actually does not rightly belong here... but could not help but ask after i read this above quoted reply... thanks for the example .. its a real eye opener.. for someone just starting out on the MBA quest...)

[MartianOnEarth]

You are right. People talk about that duration (15-20 years) mainly because the loan tenor is for that duration. And it does help applicants from countries (incl India) where the exchange rate isn't favourable, to spend time in the US or Europe or elsewhere to reduce the debt to a comfortable level before thinking of heading back home to earn in INR.

What also helps is if you can get into high paying industries such as consulting and I-banking. But these are fiercely competitive roles that the majority strives for. And the pay outside the top-tier firms isn't that great.

So it is a calculated risk that needs to be taken after weighing the pros and cons seriously.

[divine_dev]

UCIrvine's Paul Merage School of Business offers loans without cosigner. But I believe, SallieMae wouldn't be providing loans without a cosigner from this year. However, Citiassist would continue giving loans without a cosigner for at least this year. But the amount that you can borrow is limited to the tuition fees.
But having a cosigner reduces the interest rates significantly and you can get a loan to cover all the costs.

[amu1983]

I'm pro US-MBA bcoz of the following reasons -

1. It needn't cost you 30-40 lakhs (USD 60-100 thousand). Among the top 100 schools, I'm sure you'd find at least a third who offer aid / scholarship to at least 50% of their students. Try and get some fee aid. It instantly takes off around 20,000 USD from your debt. If you have more experience, go for a 1 year course which typically costs a lot less.

2. In today's global world, MNC companies generally do not offer you less pay just bcoz your work location is some X country. They understand that people are smart enough to realize the discrepancy in the pay scale, and wouldn't be happy working for less pay for long. If you are of such caliber (which any MBA from a top 100 school is) that a company wants you on its payroll, I'm 100% certain that it would pay you what you're worth, which is at least USD 80,000 in present market conditions. Especially in India, where a good IT engineer costs about 8 lakh p.a, an MBA would be worth at least 25.

3. Can anyone deny the prestige and the weight it adds to your CV? It's an investment that pays throughout your lifetime...

[amu1983]

Yes. It is possible. If you/ your parents borrowed 10 lakhs for the house and are half way towards the repayment (outstanding balance is 5 lakhs), you can club your housing and education loan and re-borrow against the present market value of the house. If the house today costs 20 lakhs, you / your parents technically own Rs. 15 lakhs, which the bank will have no problem giving you as a loan.

The assumption is that the property price has jumped enough to inflate your net worth on paper.

Originally Posted by mkarthik01

Hi

The house that my parents own, is under a loan.
So the documents are with the bank.

Is it still possible to use this house as collateral for taking a loan. [ I guess it can't be done ]


Karthik

[nainadevine]

Well i think that most of the banks charge a huge amount of interest on the loan amount that sometimes students find themselves unable to repay the loan easily. Also there is uncertainity that astudent will surely get a job right after MBA.
I found a trustworthy and reliable website Credila.com that is quiet helpful to MBA aspirants and provide lots of useful information. You can enjoy quality education loan services.

so just check it out frends!

[thomas.wai]

Hi

To answer the question - "US MBA Loan and re-payment, worth it?"

It largely depends on which MBA schools you are talking about. If you are eligible to get into one of the top 10 business schools in the US, you have a great chance to land on a great job after your education. Schools like Harvard, Wharton, Chicago all have fantastic MBA career office which helps MBAs to look for jobs.

Good luck.

Kind regards,
Thomas

[Focus09]

Can someone who has already gone through the loan raising process please clarify the chain of events before one can actually sit in the first class of an MBA program:

1. GMAT
2. Shortlist colleges
3. Essays, transcrips, recommendations, etc
4. College reverts if application is shortlisted
5. Schedule interviews (In college or through local alulmni)
6. Final decision of admission by colleges
7. Send proof of funds
8. I am a bit hazy of the typical activities here (If someone were to take a loan from the financial institutions conencted with the MBA institute is it here that the loans are sanctioned??)
9. I20
10. VIZA
11. Fly to US, UK
12. Attend first class

I would also like to know the level of self funding is required. Do the loans that banks give cover living expenses as well or are they to be managed from personal savings. Also how much time does it take for loans (assuming someone based in India takes it from banks in the US)

Thanks in advance.....