“I’m In…Now What?” Paying For It

At this point, I like the mix of “Sources” and “Uses”, and now it’s time to check what my debt-to-income ratio will look like in this scenario.

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By reducing my level of borrowing, and by funding my debt through a low-cost fixed-rate alternative, I was able to bring down my debt-to-income ratio to a level I’m more comfortable with, 18.6%. After putting some pen to paper, I feel that I have a better handle on my upcoming financial situation, and it’s a relief.

Your Own Spreadsheet

The stress I felt with regards to funding my MBA was rooted in not knowing. That’s why I’m providing my spreadsheet to help you think about your own personal “Sources” and “Uses.” (My friends affectionately call it the “Rexcel spreadsheet” – My name is Rex and I created it in Excel, so…).

Customization is encouraged; I imagine the “Sources” and “Uses” for a single consultant will look different than for a veteran with a family. Perhaps you prefer to live in a doorman building so you anticipate your room and board costs will be a bit higher. You might have an eye on a teaching assistant job that could really help out on the “Sources” side of the equation. Whatever your modifications, you can use this spreadsheet to help you figure out the best way to approach financing your business school experience.

It worked for me, and I hope it works for you.

Footnotes: (1) Please consult your tax advisor for guidance. (2) The figures used in this example are illustrative.

Sources: U.S. Department of Education, U.S. Department of Health and Human Services.


Rex Carasco

Rex Carazo

Rex Carazo is a Community Developer at CommonBond, a social lending platform that connects student borrowers and alumni investors to lower the cost of education for students and improve financial returns for investors. CommonBond is also the first company to bring the “one-for-one” model to education. Rex will be entering the Class of 2015 at a top business school in the fall. This is the second in a series of “I’m in… Now What?” posts for prospective and incoming MBA students.


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