For those that went to MBA, how fast did you pay your loans and how much did you take out? Should I live it up during my last year (I don’t have a job yet but at an M7)

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I wouldn’t. The market is tightening. MBA value isn’t what it once was, so your chances of landing a top tier role are lower…carrying 150K+ in debt with no job in sight is daunting.

likesmart

Op is already in b school

funny

Went to a Part-Time MBA and maintained full-time employment paying much of my tuition up front so my loan balance skews lower around $40K but I paid it off within about a year after taking my job at Accenture.

I DEFINITELY would not take out more debt than required and live it up because there’s no guarantee you’ll earn more with your MBA and be able to pay it off quickly.

I’d say roughly half of my class didn’t change jobs (and likely received no direct pay increases) after graduation.

likesmart

Times have definitely changed, I did part time and probably 10% of those who went for consulting or IB got it, and only 3-5% into the “top firms”. Just a blood bath these days

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$100k. Could have paid off in 2 years but I refinanced below 3% so I’m taking my time.

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170k paid off in 4 years

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Senior associate to Senior Manager

Paid from my company at the time. No required service after. I was the last one before they changed their policy. All I had to pay was the books.

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Wow that’s so nice

~$50k paid off in 6-7 months (graduated in April/May, started working in June, paid off loan by December). I would live it up a little but be smart. Paying on debt sucks, employment isn’t guaranteed, and rates are higher at the moment. If you can find cheap airfare and lodging, go wild. Skip the Wheels Up flight and yacht for Art Basel.

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No- MBA doesn’t guarantee a great job after. I went I am M7 school and watched classmates struggle to find jobs. Enjoy but don’t blow your whole life savings- AI is shaking up white collar jobs too.

I only took out $50K and paid the rest through a 529 up ra bit before starting school. Paid the $50K off in 2yrs. That cost was almost $200K.

likehelpful

Enjoy yourself, but also avoid the temptation to just go with the flow and overcommit to things, especially if you’re hanging around and trying to keep up with classmates who already have generational wealth. As for debt, the psychology of loans pushes many to pay off as quickly as possible, but in some cases that also can have a huge opportunity cost. If you can lock in a low rate on your loans and spread out payments, you might be better off investing that money than aggressively handing it over to your loan servicer.

likesmart

Consulting jobs (and salaries) are not guaranteed. Graduated M7 in 2008, took 11 years to pay off. Every situation is different - do you have a family? Kids? Living situation? HCOL?

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$120k loan

220k. I lived it up. 3% rate. I still owe 8 years out but no point in paying earlier, and I am putting the money into a coinvest that should 3-5x.

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Not the fund. This one asset. Could be 5-10x, 3-5 is conservative. Scaled company with a stellar thesis that’s playing out. Not a fun deal to live through but the economic upside is there. I’m on the exec team at the portco not in the PE fund.

+1

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90k, 2 years

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180k, 5 years

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I went part time at an M7 pre/through covid. finished it in 1.5 years and pivoted from industry to consulting right after. took about $100K and payoff was ~2 years (signing / annual bonuses helped). not going to lie - campus recruiting was a shitshow and had to network my ass off outside of campus recruiting to break in (M7 helped here). i’d say if you’re eyeing pivots into senior consulting or finance roles, it’s probably worth it.

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190k, 3 years

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I had about $250K that I paid off in 7 years (MBA + residual college and 1st grad degree).

I would never “live it up” and waste money. I went to an M7 and there are plenty of ways to subsidize travel. For example, I went on 3 almost fully paid international treks (I was a leader for 1, 1 was paid through a grant, 1 was a pro bono consulting project).

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Important to note that I had 2 kids during those 7 years.

170k - immigrant so interest rate is 6.7% - paid off in 2 years

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Minimal spending, internship money or signing bonus etc towards loan — not helpful probably but ya save more and put savings towards loan

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250K @ ~4%. No rush to pay it off either.

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Took out roughly 70k, just graduated, and intend to pay it off by march or april

80k 5 years. Got one year on scholarship.

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