A Master of Business Administration (MBA) degree from a reputable university unlocks the door to a world of career potential. And while attending college to learn about business can be a wise financial move for your future, that business degree can become a source of stress after graduation. This stress stems from student loans.
Each year, millions of students borrow from lenders to pay for their school tuition. One survey by Bloomberg Businessweek of over 10,000 MBA graduates from 126 schools found that nearly half of students at top business schools across the world took out at least $100,000 in order to finance their MBA. But that’s not to say that this investment isn’t valuable. The majority of MBA graduates go on to lucrative careers. Standford University, one of the world’s top business schools, says the average 10-year ROI of graduates of its MBA program surpasses $1 million.
For many, student loans are the only option to pay for school. MBA graduates are faced with higher rates of student debt due to the growing costs of MBA programs.
This leaves many students to explore how to refinance MBA loans. Student loan consolidation is a common method graduates use to simplify their financial lives after graduation.
Ways to consolidate MBA student loan debt
There are several ways to consolidate MBA student loans or refinance MBA loans.
If you have federal student loans, you may have the option to consolidate MBA student loans with a Direct Consolidation Loan through the U.S. Department of Education. This is a great option to simplify student debt management by combining all student loans into one.
However, a Direct Consolidation Loan doesn’t save you money with a lower rate – it simply combines your debt to make payments easier.
But perhaps you borrowed from a private lender or a combination of private lending and federal lending. Or maybe you want to save on interest or lower your monthly payment – in addition to combining your loans.
If this is the case, you may have the option to consolidate MBA student loans through one new private lender. This move alone may be able to save you big money throughout the course of your loan. It’s becoming an increasingly popular financial move for graduates across the country.
Refinancing your MBA student loan debt
MBA graduates, like law school grads and medical school graduates, often struggle with how to repay their tens of thousands of dollars in loans. Maybe you haven’t found secure employment yet, or maybe your interest rates are costing you way more than you anticipated when you first agreed to terms with your lender. This is certainly not uncommon. No matter what your reason for refinancing MBA loans, know that doing so can give you peace of mind and save you stress in the long run.
There is a wide range of benefits associated with refinancing student loans. Whether or not this is a good option for you depends on your financial situation.
From saving money on interest to extending your payment terms to fit your financial plans, refinancing student loans can open the door to greater financial freedom later down the line. Here’s a closer look at some ways refinancing MBA loans can serve you well.
Save money with a lower rate
Coming up with the money to pay for college isn’t easy. Some students work full-time while attending graduate school. Others take out loans to pay for the entirety of their schooling. Unfortunately, borrowers agree to sub-par lending terms too often and are later stuck paying for loans with sky-high interest rates attached. Not only can this eat up at your salary once you secure employment, but it can also cause a whole lot of mental stress, which can lead to a host of problems. Refinancing your student loans can help you secure a lower finance rate, meaning you can pay off loans more quickly and save money on interest. Many people find this reason enough to seriously consider refinancing.
New repayment terms
Everyone’s financial situation is different. You may not be able to find secure employment and a high-paying salary as soon as you graduate. This can make the process of paying off loans even more stressful. But there are ways to alleviate this stress, and they come in the form of student loan refinancing. By refinancing your student loans, you may be able to negotiate different lending terms that are better suited for your unique financial standing. Maybe you choose to make bigger payments over a shorter period of time, or smaller payments over a longer period of time. No matter which path you choose, student loan refinancing is a great way to take charge of your loans and embark on a student debt-free life much sooner.
One simple payment
Desperate financial times may have resulted in you taking out multiple loans through various lenders. This happens often, and while it can be necessary in order to pay for tuition, it can also become a source of stress for students later on. One big benefit of student loan refinancing is the ability to pay just one monthly payment rather than multiple monthly payments, which can quickly add up when combined with other bills. By juggling too many payments, you run the risk of forgetting one and putting a good credit score at risk.
Compare MBA student loan refinance rates
There is no one-size-fits all solution to student loan debt. There are, however, many choices for borrowers to select from when seeking to clean up their finances. If student loan refinancing seems like a good option for you, it’s important that you start with research.
Earning an MBA can lead to some great career opportunities. If you have secure employment and a good credit score, you may have a wide variety of lenders to choose from when it comes to an MBA student loan refinance. Start by comparing rates across the board. By comparing rates, you’ll begin to form a clear picture of what your student loan payments will look like in the future.
Refinancing your student loans and simplifying your payments is a great way to take charge of your financial situation and start building the wealth you deserve.
