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You worked hard and finally earned your MBA. First off, congratulations! Earning this degree can open the door to new opportunities including higher annual salary and recognition as an expert in your field. Unfortunately, it also comes at a cost that you probably have to pay back. Unless you earned your MBA on a scholarship, you'll have to start repaying your loans about six months after completion. What's that mean for you? Simply put, you need to find a way to pay off your debt and still live well. In this guide, we'll go over some of the best ways to pay off your MBA loans.
Pay More
It might sound like a no-brainer but when you are going back to college the more you can pay, the less you'll owe. Paying only the minimum monthly payment keeps your loan in good standing, however, it doesn't touch accruing interest. Take a look at your finances and see where you can cut corners to pay more. Even an extra $50 a month can help to pay down your debt.
Refinance Your Loan
Another way to lower your payment and pay off your loan faster is to refinance student loans with NaviRefi. In many cases, you can roll your current into a new one with better repayment terms and lower interest rates. This will give you an opportunity to rework your current finances and see how you can pay off your MBA even sooner. Your goal should be paying as much as possible to keep your interest rate low, even if you refinance. It's also important to note that your loan needs to be in good standing to apply. Defaulted MBAs, or ones that have a history of late payments, may not qualify.
Student Loan Forgiveness
Those with MBA degrees are entitled to student loan forgiveness. Student loan forgiveness is when people are no longer obligated pay off what you owe. However, that's just the basic premise of it. Not everyone is entitled to a full-on forgiveness plan. It's different for everyone as some people may only be eligible to be relieved of half or a fraction of it. There are also various forms of forgiveness:
- Public service loan forgiveness
- Teacher loan forgiveness
- Perkins loan cancellation and discharge
- Total and permanent disability discharge
You might notice the discharge and forgiveness. There's also a third term called cancellation. Each one functions a little differently, but they all accomplish the same thing. You'll have to research each of the forgiveness plans we covered for more details.
Aid From Your Employer
Interestingly enough, some companies offer an employee benefit that covers most, if not all, of your MBA costs. They can do this in three ways: employer sponsorship, tuition reimbursement, and graduate assistantship. The first one, employer sponsorship, is when a company pays for the entirety of your MBA program if you agree to continue working there once you finally graduate. Whenever an employer offers a sponsorship, you must hold up your end of the bargain by working there for a set amount of time. How long you have to work there depends on the company, but you should expect to work there for a few years. Tuition reimbursement is another benefit that basically takes the place of a sponsorship.
This is when your employer can offer you over $5,000 for the cost of your education. But the amount you receive will depend on your employer. Furthermore, you also have to cover the costs since this is a reimbursement program. You can easily do this by taking out a loan or using your own personal savings. Graduate assistantships are jobs that provide you with money towards your MBA. This also includes a monthly stipend, which is basically an allowance. The stipend is a fixed amount rather than an hourly wage.
