Hi,

Adding to what the others have said: while it's completely normal to take a large student loan, you should aim for lowering this amount with scholarships (either merit or need based). The chance of getting a partial one is not even that low (many MBA programs offer scholarships to 25-33% of the class, not sure about MScs in Management). Often times you don't even have to apply to these, you are automatically considered when you apply to the program.

If you expect your salary to be relatively low after the program or simply want to avoid the pressure, it might be worth looking into income share agreements. The idea of these is that you contribute to the outstanding loan amount proportionately to your salary, and, if your income does not reach a certain threshold, you do not pay at all. When your income is in the 80-100k+ range though, you are better off with a loan.

Best,

Réka

Hi,

Taking a loan is a common option. Just multiply all your potential expenses on 1.5x to be realistic.

Secondly just betting on consulting post B-school as too risky. If you don't have work experience - it'll make your chances close to 0, since post b-school roles assume work experience. And I'm not even mentioning the fact that it's not that easy to get this offer.

Finally the brand of the Business School matters. It will be much harder to secure an offer if it is not a top3 school in a country

Best

Hi there,

The top financing options (in no particular order) are:

1) Existing savings

2) Parents/family

3) Company sponsorship

4) Loans (particularly student loans)

Debt-financing

If your definition of "not crazy" is that other people do it, I can assure you that 30-40k is pretty standard. In fact, I know people who have gone more than 100k into debt (for MBAs, to become a doctor, etc).

Ultimately, you need to think about the cost-benefit. I.E. if you do this, compare:

The NPV of your increased future income (and the compounding gains) versus the cost of education (loan+interest) AND the NPV opportunity cost of the income you could have earned in that 1-2 years instead of studying.

To add a 2nd dimension: Future happiness, job security, fullfillment, satisfaction, mobility, etc.

Hi Anonymous!

It sounds like you will be attending a university offering Msc in Management and not necessarily a business school getting an MBA. The latter requires working experience and it will be very hard to get into unless you have a very strong background.

If you come from a non-business background and you are looking to transition I think getting an Msc in Management could make a lot of sense.

In terms of financing getting a loan is very common and 30-40K is a pretty achievable amount to pay back assuming you secure a good job after graduating. The key thing I would consider is if the school you are planning to attend will give you the best ROI on the 30-40K euros you will be spending and put you into a good position to get into the firms you are targeting.

Hope that helps!

A

Dear A,

This is highly general question. I think everyone does it on his own. I personally was very hesitant to take any loans for my education, so I attended State Universities and became the best in them, so I would rather advise you to look for potential scholarships to finance your education. This is how I did my two non-consecutive masters in 2 countries.

If you want, I'm happy to share my experience in a call.

Wish you good luck,

André

Hello!

PM if you want, I got full scholarship for my MBA in MIT Sloan.

Cheers,

Clara

Hi there,

given it seems you cannot use savings, you can consider a couple of options if your goal is to break into consulting:

1. Find scholarship for your Master, apply to consulting after it, join as Analyst
2. Get a loan for your Master, apply to consulting after it, join as Analyst
3. Find a suitable job first, apply for an MBA after few years (you may have to use a scholarship or loan as well in this case, or have it sponsored by your employer), apply to consulting after it, join as post-MBA

As mentioned by Emily, the brand of the school you attend is very important and you should check if there are exits to consulting companies after it looking at the alumni of the school.

Best,

Francesco