MBA wannabes are prone to their fair share of misconceptions and mistakes. What have you noticed to be among the most popular issues that incoming students underestimate?
Basically, carrying too much credit-card debt and being locked into a car lease, more so than a car loan. Students may have a loan and sell the car and actually, in a sense, take a loss, even though they may get enough to pay off the loan. But once a student is locked into a lease, that becomes a problem. Our basic budget does not allow for car payments. Surprisingly, you’re not the first person that’s mentioned the tendency for MBAs to take out sizable car loans and leases. There must be far too many Jags and Corvettes in Yale’s parking lot. What advice do you have for the folks who are locked into these car leases? I’d probably suggest that a student reconsider when they want to start their MBA education. Obviously, that’s really not up to me, and I don’t necessarily offer that advice. But it is a problem when students come in carrying too much debt.
