Managing Graduate Business School Loan Debt

Managing a large amount of debt is not impossible – it simply depends on your student loan portfolio.

No one wants to owe vast sums of money, but if it’s the only way for you to finance graduate business school, don’t panic. Instead, let’s put it in perspective. First of all, you are not alone.

Now, let’s assume you plan to attend a two-year program whose total cost of attendance is $50,000 per year. You could end up borrowing close to $100,000 if you need to take out loans to cover the full amount – an intimidating thought for sure.  

Managing a debt of $100,000 is not impossible – really! It just depends on the composition of your student loan portfolio, which may be a combination of federal and private education loans, each with different terms and conditions, interest rates and fees, and repayment options. Some loans have grace periods when you are not required to make payments, and some offer deferment and forbearance provisions.

When taking out student loans, be sure you understand the terms and conditions of all of your student loans, including:

• Interest rates
• Capitalization policies (for unsubsidized loans)
• Grace, deferment, and forbearance options
• Repayment options and terms
• Lender and loan servicer

While your student loan debt may be high, there should be enough repayment options on federal and private loans that you will be able to set up a payment schedule that meets your particular budget needs.