MBA programs provide incredible career and personal opportunities for women in business. But these opportunities come at a cost. Many, if not all, of us have to take out loans to finance our professional education. No matter how much we budget, or save, we will all eventually be hit with the reality that we have to pay back those loans… with a generous side portion of interest.
No matter what stage you are in of your MBA program or debt repayment, MBA Mama and our strategic partners are here to talk you off the ledge.
Recently Phil DeGisi of CommonBond, our MBA Mama Approved Student Loan Partner, shared the strategic method in which he paid off the $150,000 of his MBA debt in just six years with Huffington Post.
DeGisi outlined four crucial steps he took to repaying his debt well before the term date, saving himself a lot of money (in the long-term) and headache:
- Plan your post-graduation budget before graduation — Make your student loan payments one of the primary lines in your budget so you avoid getting overextended financially right away.
- Direct deposit is your friend — in order to avoid getting fees or negatively affecting your credit, set your student loan payments to automatically debit from your checking account every month.
- Pay more than the minimum (if you can) — Once you’re settled financially in your new job and city, increase payments as much as possible so that you pay down your loan quicker.
- Put your “upside dollars” towards student loans — Any bonuses that you get should be directly applied to your loan principal. Make sure to specify with your loan manager that these large sums above your minimum monthly amount are to be applied directly to your principal, so that you can cut down severely on accruing more interest.
With these tips and tricks in hand, you will be seeing the light at the end of the tunnel sooner than you might have hoped.
To start planning your financials for school today, or to refinance your loan, take a look at CommonBond.
The New York Times also has a student loan calculator that you can use to get a head start on your healthy financial future.