Tuesday, March 23, 2004
I think I’m going to tell my boss about business school. Today we were talking about timelines and workloads. Now that I know I’m out of there by the end of July, I feel I have to tell my boss so she can plan. I can’t even look her in the eye when she starts talking about a major project I work on. My conscience is seriously weighing on me and I think the most professional thing to do would be to let her know by May 1. I hope my conscience doesn’t result in a big chuck being bit out of my ass.
On MBADiversity, Someone posted a loan calculator that shows how much money you need to make to service student loan debt. Here’s an example that made me almost hyperventilate:
“Loan Balance: $100,000.00
Loan Interest Rate: 8.25%
Loan Term: 10 years
Minimum Payment: $50.00
Monthly Loan Payment: $1,226.53
Cumulative Payments: $147,182.90
Total Interest Paid: $47,182.90
“Note: The monthly loan payment was calculated at 119 payments of $1,226.53 plus a final payment of $1,225.83 .
It is estimated that you will need an annual salary of at least $147,183.60 to be able to afford to repay this loan. This estimate assumes that 10% of your gross monthly income will devoted to repaying your student loans. If you use 15% of your gross monthly income to repay the loan, you will need an annual salary of only $98,122.40, but you may experience some financial difficulty.”
That’s right you need to make $150 K to be comfortable – that doesn’t even count house, car, previous education loans, whatever debt that you may have.
Sure, the interest rate in this example is probably too high, but you’re probably going to have to pay $1,000 AT LEAST to service MBA debt with no scholarships
Now for all the ballers who are going into IB or MC or whatever, this may not seem as daunting. It’s totally possible that you’ll be making more than $150K within five years of graduation. But me – a person who decided to go into nonprofit management – I’m probably not making $150K until I’m over 50. So unless I pick up a sugar daddy in grad school (which I’m not totally opposed to :) ), I’ve got to consider the cost of my education, and my ability to pay back the debt.
So, although I think it would be cool to make a difference at NYU, making a difference for a bunch of folks who don’t value the nonprofit sector ain’t gonna put food on the table.
On MBADiversity, Someone posted a loan calculator that shows how much money you need to make to service student loan debt. Here’s an example that made me almost hyperventilate:
“Loan Balance: $100,000.00
Loan Interest Rate: 8.25%
Loan Term: 10 years
Minimum Payment: $50.00
Monthly Loan Payment: $1,226.53
Cumulative Payments: $147,182.90
Total Interest Paid: $47,182.90
“Note: The monthly loan payment was calculated at 119 payments of $1,226.53 plus a final payment of $1,225.83 .
It is estimated that you will need an annual salary of at least $147,183.60 to be able to afford to repay this loan. This estimate assumes that 10% of your gross monthly income will devoted to repaying your student loans. If you use 15% of your gross monthly income to repay the loan, you will need an annual salary of only $98,122.40, but you may experience some financial difficulty.”
That’s right you need to make $150 K to be comfortable – that doesn’t even count house, car, previous education loans, whatever debt that you may have.
Sure, the interest rate in this example is probably too high, but you’re probably going to have to pay $1,000 AT LEAST to service MBA debt with no scholarships
Now for all the ballers who are going into IB or MC or whatever, this may not seem as daunting. It’s totally possible that you’ll be making more than $150K within five years of graduation. But me – a person who decided to go into nonprofit management – I’m probably not making $150K until I’m over 50. So unless I pick up a sugar daddy in grad school (which I’m not totally opposed to :) ), I’ve got to consider the cost of my education, and my ability to pay back the debt.
So, although I think it would be cool to make a difference at NYU, making a difference for a bunch of folks who don’t value the nonprofit sector ain’t gonna put food on the table.
