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Considering Grad School

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Anonymous
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Considering Grad School

Hey all,

 

New here. Just thought I'd pick a brain. I currently have about 25k in debt but am looking to go to business school. I currently am working for a non-profit but make a modest salary of 56k. The business schools I'm looking into are around 20k total. The rub: I don't think I can advance with my current undergrad degree (religion) but I'm scared to death of more loans which I know could net me a higher income. My question: what should my target salary be for 45k in loans and would an MBA help get me there

Message 1 of 6
5 REPLIES 5
SCF
Valued Contributor

Re: Considering Grad School

A very general rule of thumb is that you should be making at least the total of your loans on an annual basis to be able to pay them back.  That said, that's a minimum standard, you'd probably want to make more than that (depending on your situation) so that you would have plenty of room in your budget for the payments.

 

$56k is honestly a very good salary for someone with a bachelors in a "general" field - I mean that in the sense that your job probably did not require your degree to be ain a specific field.  A lot of people have MBAs, and a large number of them have degrees from schools with excellent reputations and alumni networks.  Can the school you've chosen give you a leg up in your career?  Whether having an MBA is "worth it" is going to depend on what job you want, what the requirements are to get it, and whether the school you choose has the courses, professors, reputation and connections to help you get there.

Message 2 of 6
Anonymous
Not applicable

Re: Considering Grad School

Thanks alot. If I were to increase my student debt to 45k then, what would be a good salary, in your opinion?

 

There are a couple of moving parts here: I like my job but I don't think I'll be able to advance much higher (given that its a non-profit). The MBA would help tremendously with what I do on a day-to-day basis but I'm weary of having to get something that would increase my debt a ton and not contribute to my increase in pay. The other side is that I may end up leaving this job if the right opportunity comes along. This I know would be much more likely with an MBA.

 

When I type it out it almost seems like a no-brainer but it's nice to have confirmation.

Message 3 of 6
ccnewcc
Established Contributor

Re: Considering Grad School


@Anonymous wrote:

Hey all,

 

New here. Just thought I'd pick a brain. I currently have about 25k in debt but am looking to go to business school. I currently am working for a non-profit but make a modest salary of 56k. The business schools I'm looking into are around 20k total. The rub: I don't think I can advance with my current undergrad degree (religion) but I'm scared to death of more loans which I know could net me a higher income. My question: what should my target salary be for 45k in loans and would an MBA help get me there


I would like to call into question the 20k total cost for your prospective MBA program.  20k seems really low.  Are you confident that 20k is for the entire program and is not per year?

 

 

Many MBA programs last 18 to 24 months and are priced as "per year."  The Total Cost of  MBA programs that I know cost at least 60k. →30k per year.

 

 

 

Message 4 of 6
bahbahd
Established Contributor

Re: Considering Grad School

The program that I would attend would cost over $80k for two years. If you are trying to judge your salary pre and post business schoo, you really need to consider who typically hires graduates from the school you plan on attending. MBA candidates typically begin with a few years of work experience in the field they wish to advance in prior to starting the masters program. If you don't already know how much you could make now and in the near future, then learn quick. You might find out that you may not see a dramatic increase in salary just because you have and advanced degree.

Message 5 of 6
Anonymous
Not applicable

Re: Considering Grad School

Good advice. To throw another wrench in the mix, I'm also considering an economics masters which would run me at $12k for one school or $35k at a much more prestigious school. This would up my student loan debt to $37k or $50k perspectively. At my current salary I'd still be ahead of the curve but would expect a significant raise by getting the Masters through Johns Hopkins. 

 

I'm just trying to make sure that whichever route I go I don't get over my head in debt and not get an ample raise. Make sense?

Message 6 of 6
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