EXPERIENCE WHARTON FOR YOURSELF Financing Your MBA The Wharton School University of Pennsylvania April 17, 2004

EXPERIENCE WHARTON FOR YOURSELF General Information  You can finance business school through student loans  Apply within the suggested deadlines as indicated in your FA booklet  Take financing your education as seriously as admission … it may be harder than getting admitted!

EXPERIENCE WHARTON FOR YOURSELF How the Wharton MBA Program is Financed  Students and families  Federal aid – Loans (Stafford, Perkins)  Private/Alternative Loans – (Citibank, Access, Sallie Mae, MBA Loans, Teri)  Loans from country of citizenship  Institutional aid – (fellowship/grant)

EXPERIENCE WHARTON FOR YOURSELF Students and Families  Savings – Stocks, Bonds, IRA, 401k, personal savings  Student earnings – summer  Parental and other gifts  Employer sponsorship

EXPERIENCE WHARTON FOR YOURSELF Student Expense Budget  Per federal regulations total aid must not exceed student budget  Set by Institution  Budget includes: tuition & fees, room & board, books, supplies, living expenses and miscellaneous  Based on single student – married students may request a budget re-evaluation

EXPERIENCE WHARTON FOR YOURSELF Federal aid for U.S. citizens & permanent residents includes:  Federal Stafford Loans – sub/unsub; total of $18,500 per year  Perkins Loans – subsidized – federal agency determines eligibility – maximum $6,000  FAFSA – Must be completed each year to receive federal funding… process is Free – no cost

EXPERIENCE WHARTON FOR YOURSELF Private/Alternative Student Loans  Credit based  Signature – no collateral  Variable interest rate  Co-signer options/requirements  Private/alternative loans include: Access, Sallie Mae, Citibank, Teri, MBA Loans, and more

EXPERIENCE WHARTON FOR YOURSELF Credit  A growing issue for higher education  If your credit is bad, you may not be able to borrow private loans  Most loan agencies review all aspects of student credit history ________________________________________ Credit Reporting Agencies Experian: Trans Union: Equifax:

EXPERIENCE WHARTON FOR YOURSELF Questions to ask Yourself  How much will this really cost?  Can I afford it?  What are my total assets and savings?  What is my current indebtedness?  What portion of my savings/assets can be used to decrease my borrowing ______________________________________  Food for Thought: The monthly payment of a $100,000 loan, payable over 15-years, interest rate at 4.50% will be approximately $765/per month.

EXPERIENCE WHARTON FOR YOURSELF What Are My Next Steps?  Read and follow your FA instruction booklet.  Complete the Steps in sequence.  Award Notification Letters will be sent to you within 2-days of our receipt of all required documentation.  File loan applications within suggested deadlines.. (International students must wait until arriving in the U.S. to file loan applications).  If you have questions regarding the process contact our office, not Student Financial Services (SFS).

EXPERIENCE WHARTON FOR YOURSELF Have I exhausted you yet? Sharon Brooks University of Pennsylvania The Wharton School 420 Jon M. Huntsman Hall 3730 Walnut Street Philadelphia, PA Telephone: ext.6 FAX: