Slides presented in the "How To Pay For Your MBA" webinar co-hosted by CommonBond and Accepted.com on July 16th, 2014. Recorded video will be available the week of July 21st from Accepted.com

1. Helping Graduates Save on
Student Loans since 2012

2. Agenda
1. Understand true Cost of Attendance
2. Determining the right sources of funds
3. Choosing the right loan type
4. Choosing the right lender
5. Meeting key deadlines

3. CommonBond Background
 Focused exclusively on student loan funding needs
of graduate students
 Founded by Wharton alums
 Raised over $100M from top-tier investors
 Growing 300% this year
 Featured in The New York Times, The Economist,
Forbes, CNBC, Wall Street Journal, Inc. Financial
Times, TechCrunch…

4. Cost of Attendance
 Cost of Attendance
 What it is and what it means for you
 What’s in it (and not)
 Additional Considerations
 Travel
 Supporting a family or partner
 On-campus expenses
 Cushion for unforeseen expenses

5. COA: A Comparison
https://commonbond.co/mba-student-loan-calculator
HBS MIT

6. Sources of Funds
What can you use?
 Personal savings
 Company sponsorship
 Government Loans: Perkins,
Stafford, Grad PLUS Loans
 Private loans
 Scholarships/fellowships
 401k / IRA / retirement funds
What should you use?
 Highly personal decision
 Framework to follow in 6 steps:
1. Safety net
2. Cheap vs expensive debt
3. Risk appetite on variable rates
4. Opportunity cost of money
5. Future plans and purchases
6. Expected future income

7. Loan Types: Terms & Features
 Interest rate & APR
 Fixed vs variable rates
 Origination fees
 Loan Term
 Credit & eligibility
Detailed definitions at: https://commonbond.co/glossary
 International student
considerations
 Cosigners
 Loan Discharge
 IBR, PAYE & PSLF
 Disbursement

8. Loan Types: Tradeoffs
10-Year 15-Year
Pay less interest over
the life of the loan
Pay less each
month
@ 6.24%:
Payment: $764
Total Payments: $91,684
*Assuming an $80,000 loan balance
@ 6.74%:
Payment: $605
Total Payments: $108,950
+ / - $159
+ / - $17,266

9. Choosing A Lender
 Total cost of borrowing
 Loan Features
 Borrower Protection
 Economic Hardship
Forbearance
 Employment Protection
 Grace Period?
 Pre-payment penalties?
 Company characteristics
 Customer service
 Reputation
 Network / community

10. Timelines
 FAFSA
 School deadlines
 Disbursement process