Borrowing money is not the best way to pay for business school, but for some students it is the only viable option. It is important that you take care to borrow from the right sources in case you do need to apply for a student loan. Interest rates and terms can vary significantly from loan to loan. The most desirable loans have low interest rates and deferred payments (required payments are postponed until after you graduate.) Your first step in applying for a loan should be to fill out the FAFSA. This will help determine your eligibility for Direct Loans, which are awarded through the U.S. Department of Education. These loans are low-interest and have flexible payment terms. You may have to consider a private lender in case you are not  eligible for a Direct Loan. You can go to your current bank or to a bank that specialized in student lending. You may also be able to borrow from a family member or a peer to peer lending group like Greennote. Make sure you take time to carefully compare terms and interest rates before borrowing any actual money, whatever you decide to do. You have to read more about applying for a student loan.

Ways to pay for business schools

Tuition reimbursement is commonly seen in MBA programs, also known as employer sponsorship.  Most cases of tuition reimbursement require students to pay for business school tuition up front and wait to be reimbursed by an employer after graduation, although the set-up can vary depending on the employer. The employer may be willing to pay the business school directly, but this is a rare occurrence in some cases. Tuition reimbursement may be a good option for students who need help financing their business education. There are drawbacks, of course. You need to have a current employer who is willing to help cover the cost of all or at least part of your education. This type of deal is not available through every employer, although many of the businesses have an established program that can help employees obtain advanced education. Furthermore, you may be required to sign a contract promising to continue working with the employer throughout your schooling and for a certain number of years after graduation. Some employers may also require you to carry a certain grade point average or commit to a specific number of work/study hours each week.  Be sure to take time to evaluate all of the pros and cons before making any formal commitments in case you are considering tuition reimbursement as a way to pay for business school. Most companies that offer tuition assistance reimburse their employees after courses have been completed. This means that you will be expected to pay for your classes and your books upfront. You may never see a refund in case you do not successfully complete the courses you signed up for.

 

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