# MBA Funding and Scholarship Plan: [Your name]

> A workbook to plan how you will pay for an MBA: the full cost of attendance, the net cost after scholarships at
> each school, the funding stack (savings, family support, scholarships and fellowships, employer sponsorship,
> federal and private loans, country schemes), the interest that accrues while you study, and a comparison of loan
> offers on a like-for-like basis. It covers US and non-US routes in general terms and gives dated facts about the
> US federal loan changes that took effect on 1 July 2026, checked in October 2026. Replace every [bracketed] value
> and every row marked *Example*. This is a planning aid, not admissions, legal, tax or financial advice: confirm
> every figure with the school's financial aid office, the lender and the official source before you rely on it.

<!--
Guidance: How to use this template
- Start with section 3 (cost of attendance per school), then section 4 (net cost after offers), then section 5
  (funding stack). Loans come last: borrow only the gap that the other sources cannot fill.
- Keep the scholarship tracker in section 6 alive from the moment you start applying. Many external awards close
  before admission decisions arrive.
- Worked example: Tomás Ilunga, a fictional applicant admitted to two fictional two-year programmes, School A and
  School B. All numbers are Examples computed in Python (numpy_financial) and cross-checked with an Excel formula
  engine; replace them.
- Related templates: mba/mba-decision-roi (is it worth it), mba/mba-budget-during-program (monthly cash plan),
  mba/mba-loan-repayment-plan (after graduation), mba/mba-scholarship-negotiation-letter, mba/mba-admit-decision,
  mba/emba-sponsorship-proposal (employer funding), mba/mba-international-applicant-plan,
  mba/mba-application-tracker, personal/loan-comparison, personal/budget and personal/financial-plan.
-->

## Document control

<!-- Guidance: Record the version of each offer you used. Offers, rates and cost of attendance figures change between the admit letter and enrolment. -->

| Field | Value |
|---|---|
| Document ID | [FUND-001] |
| Version | [0.1] |
| Status | [Draft / Offers received / Funding confirmed] |
| Owner | [Your name] |
| Reviewed by | [Financial aid officer, mentor or adviser] |
| Last updated | YYYY-MM-DD |
| Classification | Personal, confidential |
| Programme start | [YYYY-MM] |
| Citizenship and residence | [Relevant for loan and scholarship eligibility] |
| Currency of study and of funding | [USD, EUR, GBP; home currency] |

## Contents

1. Purpose and principles
2. The funding process and timeline
3. Cost of attendance
4. Net cost after scholarships
5. The funding stack
6. Scholarships and fellowships tracker
7. Employer sponsorship
8. Loans: federal, private and country schemes
9. Dated facts: US federal loans from 1 July 2026
10. Quality checklist and common mistakes

## 1. Purpose and principles

<!-- Guidance: Read the principles once, then use them to settle disagreements with yourself later. -->

Funding an MBA is a sequencing problem. Each source has a different cost, a different deadline and different
conditions, and the order in which you use them changes the total you repay. Five principles keep the plan
sound:

1. **Free money first.** Scholarships, fellowships and grants do not have to be repaid; time spent applying for
   them usually has the highest return of any hour in the application process.
2. **Conditions are part of the price.** A renewable scholarship that requires a minimum grade, an employer
   sponsorship with a service commitment, or a loan with a cosigner each carries a cost that is not in the headline
   number. Write the conditions down.
3. **Compare net cost, not sticker price.** A more expensive school with a larger award can cost less. Compare the
   present value of what you pay, not tuition.
4. **Borrow the gap, not the maximum.** Every borrowed dollar costs interest from the day it is disbursed. Borrow
   the shortfall your monthly budget shows (mba/mba-budget-during-program), plus a stated buffer.
5. **Keep currency risk visible.** If you earn or save in one currency and pay in another, a move in the exchange
   rate can change your gap by thousands. Plan a buffer or a hedge.

## 2. The funding process and timeline

<!-- Guidance: Put every deadline in your calendar on the day you find it. School scholarship deadlines often coincide with application rounds; external awards can close a year before the programme starts. -->

```mermaid
flowchart LR
    A["Estimate cost of attendance per school"] --> B["Apply for external scholarships and fellowships"]
    B --> C["Apply to schools, ticking scholarship consideration"]
    C --> D["Receive admits and award letters"]
    D --> E["Compare net cost and conditions"]
    E --> F{"Award gap between schools worth raising?"}
    F -- "Yes" --> G["Scholarship reconsideration request"]
    F -- "No" --> H["Choose school"]
    G --> H
    H --> I["Confirm employer and family funding in writing"]
    I --> J["Fill the remaining gap with loans"]
    J --> K["Monthly budget and disbursement plan"]
```

| When (T = programme start) | Step | Done |
|---|---|---|
| T-18 to T-12 months | Estimate cost of attendance, list external scholarships and their deadlines, open the conversation with your employer | [ ] |
| T-15 to T-9 months | Submit external scholarship applications, apply to schools by round | [ ] |
| T-9 to T-5 months | Receive award letters, compare net cost (section 4), consider a reconsideration request (mba/mba-scholarship-negotiation-letter) | [ ] |
| T-6 to T-4 months | US federal aid: submit the FAFSA for the award year that covers your start if you are eligible; non-US: apply to country schemes and private lenders | [ ] |
| T-4 to T-2 months | Accept loans, sign sponsorship agreement, arrange proof of funds for a student visa if needed | [ ] |
| T-2 months to T | Build the monthly budget, confirm disbursement dates, set up the payment plan for the first term | [ ] |

## 3. Cost of attendance

<!-- Guidance: Use the school's own cost of attendance (COA) budget as the starting point, then adjust living costs to your situation. The COA also sets the ceiling for many loans. -->

The cost of attendance is everything you will spend to attend, not only tuition. Schools publish a standard
budget; adjust it for your housing, family and travel.

| Item per year | School A *(Example)* | School B *(Example)* | [School C] |
|---|---|---|---|
| Tuition | 82,000 | 78,000 | [ ] |
| Fees and health insurance | 9,000 | 8,000 | [ ] |
| Living costs (rent, food, transport) | 30,000 | 36,000 | [ ] |
| Books, cases, laptop, travel | 5,000 | 5,000 | [ ] |
| **Cost of attendance per year** | **126,000** | **127,000** | [ ] |
| Two-year total | 252,000 | 254,000 | [ ] |

Items schools often leave out and you should not: recruiting travel and clothing, club treks and global
immersion trips, conference fees, a second rent during the internship, visa and immigration fees, moving costs,
and support for a partner or children.

## 4. Net cost after scholarships

<!-- Guidance: Discount the second year's cost back to the start so that offers with different timing compare fairly. Record every condition attached to the award. -->

Compare schools on the present value of the net cost. With payments at the start of each programme year, the
present value at the start of year 1 is

$$
PV_{net} = N_1 + \frac{N_2}{1+r}, \qquad N_k = COA_k - S_k
$$

| Symbol | Meaning |
|---|---|
| $COA_k$ | Cost of attendance in programme year $k$ |
| $S_k$ | Scholarship or grant in year $k$ |
| $N_k$ | Net cost in year $k$ |
| $r$ | Your discount rate (the same rate as in mba/mba-decision-roi) |

Excel: `=N1+NPV(r,N2)`. `=NPV` discounts its first argument one period, so the year 1 payment stays outside the
function.

### 4.1 Worked example A: Tomás Ilunga's two offers (fully solved)

| Item *(Example)* | School A | School B |
|---|---|---|
| Cost of attendance per year | 126,000 | 127,000 |
| Scholarship per year | 30,000 | 45,000 |
| Net cost per year | 96,000 | 82,000 |
| Two-year net cost | 192,000 | 164,000 |
| Present value at 6% (`=N1+NPV(6%,N2)`) | 186,566 | 159,358 |
| Award conditions | Renewable, no conditions | Year 2 renewable only with a minimum first-year grade average |

School B is USD 27,208 cheaper in present value terms if the year 2 award is renewed. Conditions change that.
If Tomás estimates an 80% chance of meeting the renewal condition, the expected year 2 net cost at School B is
$0.8 \times 82{,}000 + 0.2 \times 127{,}000 = 91{,}000$, and the expected two-year net cost is USD 173,000 (Excel:
`=0.8*82000+0.2*127000`). School B is still cheaper in expectation, but the downside case (losing the award)
costs USD 45,000 more in year 2. That risk belongs in the decision, alongside fit, outcomes and location
(mba/mba-admit-decision).

### 4.2 Worked example B: add your third school (half solved)

| Item | School A | School B | [School C] |
|---|---|---|---|
| Net cost per year | 96,000 | 82,000 | [ ] |
| Present value at [r]% | [ ] | [ ] | [ ] |
| Probability that every condition is met | 100% | [80%] | [ ] |
| Expected two-year net cost | 192,000 | 173,000 | [ ] |

## 5. The funding stack

<!-- Guidance: Fill rows from top to bottom: own funds and free money first, loans last. The bottom line must equal the net cost per year. -->

The funding stack lists every source for each programme year. It must add up to the net cost; whatever is left
after savings, gifts, scholarships, sponsorship and earnings is the amount you must borrow.

### 5.1 Worked example A: Tomás at School A (fully solved)

| Source *(Example)* | Year 1 | Year 2 | Total | Cost or condition |
|---|---|---|---|---|
| Savings | 45,000 | 5,000 | 50,000 | Leaves a USD [x] emergency fund untouched |
| Family gift | 10,000 | 0 | 10,000 | Confirmed in writing |
| External fellowship | 10,000 | 0 | 10,000 | One-year award |
| Internship savings | 0 | 12,000 | 12,000 | Depends on the internship offer |
| US federal Direct Unsubsidized Loan | 20,500 | 20,500 | 41,000 | Annual cap, fixed rate set each year |
| Private loan | 10,500 | 58,500 | 69,000 | Rate, fees and cosigner per lender |
| **Total = net cost** | **96,000** | **96,000** | **192,000** | |

Borrowing covers USD 110,000, or 57.3% of the two-year net cost (`=(41000+69000)/192000`). Own funds and free money
cover USD 82,000.

```vega-lite
{
  "$schema": "https://vega.github.io/schema/vega-lite/v5.json",
  "description": "Funding stack by programme year, School A, Example data",
  "width": 300,
  "height": 240,
  "data": {"values": [
    {"year": "Year 1", "source": "Savings", "amount": 45000},
    {"year": "Year 1", "source": "Family gift", "amount": 10000},
    {"year": "Year 1", "source": "Fellowship", "amount": 10000},
    {"year": "Year 1", "source": "Federal loan", "amount": 20500},
    {"year": "Year 1", "source": "Private loan", "amount": 10500},
    {"year": "Year 2", "source": "Savings", "amount": 5000},
    {"year": "Year 2", "source": "Internship savings", "amount": 12000},
    {"year": "Year 2", "source": "Federal loan", "amount": 20500},
    {"year": "Year 2", "source": "Private loan", "amount": 58500}
  ]},
  "mark": "bar",
  "encoding": {
    "x": {"field": "year", "type": "nominal", "title": "Programme year"},
    "y": {"field": "amount", "type": "quantitative", "title": "USD", "stack": "zero"},
    "color": {"field": "source", "type": "nominal", "title": "Source"}
  }
}
```

### 5.2 Interest that accrues while you study

Interest on most student loans starts on the day of disbursement, even though repayment starts later. With simple
interest until repayment begins,

$$
I_{accrued} = P \times i \times t
$$

where $P$ is the amount disbursed, $i$ the annual rate and $t$ the years from disbursement to the start of
repayment. Tomás assumes repayment starts six months after graduation, so year 1 loans accrue for 2.5 years and
year 2 loans for 1.5 years.

| Loan *(Example)* | Principal | Rate | Years accruing | Accrued interest | Excel |
|---|---|---|---|---|---|
| Federal, year 1 | 20,500 | 8.07% | 2.5 | 4,135.88 | `=20500*8.07%*2.5` |
| Federal, year 2 | 20,500 | 8.07% (assumed) | 1.5 | 2,481.52 | `=20500*8.07%*1.5` |
| Federal total | 41,000 | | | 6,617.40 | balance at repayment 47,617.40 |
| Private offer P1, year 1 | 10,500 | 9.00% | 2.5 | 2,362.50 | `=10500*9%*2.5` |
| Private offer P1, year 2 | 58,500 | 9.00% | 1.5 | 7,897.50 | `=58500*9%*1.5` |
| Private P1 total | 69,000 | | | 10,260.00 | balance at repayment 79,260.00 |

The year 2 federal rate is an assumption: federal rates are set each year for new disbursements. Whether unpaid
interest is added to the principal (capitalised), and when, depends on the loan type and current rules; check the
loan terms. Paying the interest while in school, if you can, keeps the balance at the principal amount. An
origination fee is deducted from each federal disbursement; check the current percentage on studentaid.gov and
gross up the amount you request if you need the full net sum.

### 5.3 Worked example B: your stack (half solved)

| Source | Year 1 | Year 2 | Total |
|---|---|---|---|
| Savings | [ ] | [ ] | [ ] |
| Scholarships and fellowships | [ ] | [ ] | [ ] |
| Employer sponsorship | [ ] | [ ] | [ ] |
| Earnings (internship, assistantships) | [ ] | [ ] | [ ] |
| Loans (federal, private, country scheme) | [ ] | [ ] | [ ] |
| **Total = net cost** | [ ] | [ ] | [ ] |

## 6. Scholarships and fellowships tracker

<!-- Guidance: Track every award, including those you did not win. Unsuccessful applications are reusable drafts for the next deadline. -->

Types of awards to search, in and outside the US:

- **School merit scholarships**, usually considered automatically with the application; some require a separate
  essay or an earlier round.
- **Need-based aid**, assessed from a financial statement; schools differ in whether and how they count a
  partner's or parents' income.
- **Named and diversity fellowships** offered by schools, foundations and professional associations, including
  awards for women in business, first-generation students, veterans, specific regions or specific industries.
- **Government and bilateral scholarships** for international study, offered by many national governments and
  foundations; eligibility often requires returning to the home country after the degree. Check your country's
  official schemes and the funder's current rules.
- **Corporate and industry awards** tied to a sector (for example energy, health care or social impact).
- **Graduate assistantships** (teaching or research assistance) at some schools, paid or with fee waivers.

| ID | Award and funder | Amount | Deadline | Eligibility | Conditions (renewal, service, return home) | Status |
|---|---|---|---|---|---|---|
| SCH-001 *(Example)* | School A merit scholarship | 30,000 a year | Round 1 deadline | All admits | Renewable, no conditions | Awarded |
| SCH-002 *(Example)* | Foundation fellowship for first-generation students | 10,000, one year | T-10 months | First-generation graduates | Report at year end | Awarded |
| SCH-003 *(Example)* | Regional leadership award | 15,000 | T-12 months | Residents of the region | Two years of work in the region after graduation | Not awarded |
| [SCH-004] | [ ] | [ ] | YYYY-MM-DD | [ ] | [ ] | [ ] |

If you receive a lower award from your preferred school than from a comparable school, a short, factual
reconsideration request is common practice at some schools and not accepted at others; check each school's
policy and use mba/mba-scholarship-negotiation-letter.

## 7. Employer sponsorship

<!-- Guidance: Get every term in writing before you resign or enrol. The service commitment and clawback are the price of the money. -->

Employers sponsor mostly part-time and executive MBAs, sometimes full-time ones, in return for a commitment to stay
for a period after graduation. If you leave early you usually repay part of the sponsorship. A pro-rata clawback
works like this:

$$
Repay = Amount \times \frac{\max(0,\; M - m)}{M}
$$

with $M$ the commitment in months and $m$ the months you stayed after graduation.

| Months stayed *(Example: USD 60,000, 24-month commitment)* | Repayment | Excel |
|---|---|---|
| 6 | 45,000 | `=60000*MAX(0,24-6)/24` |
| 10 | 35,000 | `=60000*MAX(0,24-10)/24` |
| 18 | 15,000 | `=60000*MAX(0,24-18)/24` |
| 24 | 0 | `=60000*MAX(0,24-24)/24` |

Questions to settle in writing: what is covered (tuition only or also travel and books), when the money is paid
(up front or on reimbursement after each passed course), the commitment period and the clawback formula, what
happens if the employer restructures or terminates you, whether the role after graduation is defined, and how the
sponsorship is taxed in your country. Tax treatment of employer-paid education differs widely between countries
and between amounts; ask your employer's payroll team and a tax adviser. Use mba/emba-sponsorship-proposal to make
the case to your employer.

## 8. Loans: federal, private and country schemes

<!-- Guidance: Compare every loan on the same four numbers: amount you receive, total you repay, monthly payment, and the effective annual rate including fees. Then read the protections, which the numbers do not show. -->

### 8.1 Options by situation

| Option | Typically available to | Points to check |
|---|---|---|
| US federal Direct Unsubsidized Loans | US citizens and eligible non-citizens at eligible US schools | Annual and total caps (section 9), fixed rate set each year, origination fee, repayment plans, protections |
| Private lenders (banks, specialist student lenders, school-partnered lenders) | Varies; some lend to international students without a cosigner at partner schools | Fixed or variable rate, fees, cosigner, repayment start, hardship options, currency |
| Country-specific student loans and guarantee schemes | Residents or citizens of the country, sometimes for study abroad | Check your country's official schemes: eligibility, caps, interest, repayment linked to income or not |
| School loan programmes | Students of that school, often international students | Terms, cosigner, currency, whether they follow you if you defer |
| Personal loans, credit cards, home equity | Anyone who qualifies | Usually higher cost or secured on your home; read the risk carefully |

### 8.2 Worked example A: two private offers for USD 69,000 (fully solved)

Offer P1: 9.00% fixed, no fee, ten-year term. Offer P2: 7.75% fixed, 2% origination fee deducted from each
disbursement, fifteen-year term. To receive the same USD 69,000 under P2, Tomás must borrow $69{,}000 / 0.98 =
70{,}408.16$ (Excel: `=69000/(1-2%)`).

| Measure *(Example)* | P1 (10 years) | P2 (15 years) | P2 on a 10-year term |
|---|---|---|---|
| Balance when repayment starts (principal plus accrued interest) | 79,260.00 | 79,423.47 | 79,423.47 |
| Monthly payment | 1,004.03 | 747.59 | 953.17 |
| Excel | `=PMT(9%/12,120,-79260)` | `=PMT(7.75%/12,180,-79423.47)` | `=PMT(7.75%/12,120,-79423.47)` |
| Total repaid | 120,484 | 134,567 | 114,380 |
| Cost over the USD 69,000 received | 51,484 | 65,567 | 45,380 |
| Present value of the payments at 6% a year, at the start of repayment | 90,437 | 88,592 | 85,855 |

Reading the table. P2 has the lowest monthly payment but the highest total cost, because the longer term outweighs
the lower rate. On the same ten-year term, P2 is cheaper than P1 on every measure. The present value row
(Excel: `=PV(6%/12,n,-payment)`) shows that at a 6% personal discount rate the three are closer than the totals
suggest: money repaid later is worth less to you today.

A fee raises the true cost of borrowing. For one draw of USD 10,000 net under P2 over ten years, the gross loan is
USD 10,204.08, the payment USD 122.46 a month, and the annual percentage rate including the fee is 8.21%
(nominal, compounded monthly; Excel: `=RATE(120,-122.46,10000)*12`) against the 7.75% headline. Expressed as an
effective annual rate it is 8.53% (`=(1+RATE(120,-122.46,10000))^12-1`).

### 8.3 Exercise C: your offers (unsolved)

| Measure | Offer 1 | Offer 2 | Offer 3 |
|---|---|---|---|
| Amount you receive | [ ] | [ ] | [ ] |
| Fee and rate (fixed or variable) | [ ] | [ ] | [ ] |
| Balance at repayment start | [ ] | [ ] | [ ] |
| Monthly payment and term | [ ] | [ ] | [ ] |
| Total repaid and effective rate | [ ] | [ ] | [ ] |
| Protections (income-driven plans, deferment, forgiveness, death and disability discharge) | [ ] | [ ] | [ ] |
| Cosigner required, and what happens to the cosigner | [ ] | [ ] | [ ] |

Protections matter as much as rates. Federal loans in the US offer income-driven repayment and discharge rules that
private loans generally do not; country schemes often link repayment to income. A lower private rate can be the
wrong trade if your post-MBA income is uncertain.

## 9. Dated facts: US federal loans from 1 July 2026

<!-- Guidance: These rules were changing in 2026 and parts were subject to litigation. Write the date you checked them, and check again before you accept a loan. -->

As of October 2026 (checked 2026-10-28; sources below):

- **Grad PLUS closed to new borrowers.** From 1 July 2026, graduate students who are new borrowers can no longer
  take Grad PLUS loans, which previously allowed borrowing up to the full cost of attendance (Public Law 119-21,
  signed 4 July 2025, implemented through Department of Education rules and guidance).
- **Caps for the MBA.** The MBA is a general graduate programme, not one of the statutory professional degrees, so
  Direct Unsubsidized Loans are capped at USD 20,500 a year and USD 100,000 in total. Professional programmes such
  as law and medicine have higher caps (USD 50,000 a year, USD 200,000 in total). A lifetime federal limit of
  USD 257,500 applies across federal student loans, excluding Parent PLUS. Limits are prorated for less than
  full-time enrolment.
- **Legacy provision.** Students who received a federal loan for their programme before 1 July 2026 and stay
  continuously enrolled in the same programme at the same school can generally continue under the previous rules
  for up to three more academic years or until they finish, whichever is shorter.
- **Interest rate.** Graduate Direct Unsubsidized Loans first disbursed from 1 July 2026 to 30 June 2027 carry a
  fixed rate of 8.07%. A new rate is set for each award year.
- **Repayment.** New borrowers choose between the Repayment Assistance Plan (RAP) and a Tiered Standard Plan; see
  mba/mba-loan-repayment-plan.
- **What it means for planning.** At a programme costing over USD 120,000 a year, the federal cap leaves most of the
  gap to scholarships, savings, sponsors and private lenders. Plan the private loan search earlier than borrowers
  did before 2026.

Check before you rely on it: [studentaid.gov](https://studentaid.gov/), the Federal Student Aid rate notice on
[fsapartners.ed.gov](https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2026-06-04/interest-rates-federal-direct-loans-first-disbursed-between-july-1-2026-and-june-30-2027),
the ETS summary [New Federal Student Loan Rules Took Effect](https://www.ets.org/grad-school-journey/student-loan-changes-2026.html)
(updated 1 July 2026), the GMAC article on what the changes mean for MBA applicants
([gmac.com](https://www.gmac.com/resources/learners/how-to-apply/scholarships-financing/applying-to-an-mba-in-2026-what-the-changes-to-the-us-loan-system-could-mean-for-you),
May 2026) and your school's financial aid office.

Outside the US, check your country's official schemes, the school's financial aid page for international
students, and any proof-of-funds rule for your student visa (mba/mba-international-applicant-plan).

## 10. Quality checklist and common mistakes

<!-- Guidance: Use the checklist before you accept an admit offer and again before you sign any loan. -->

Checklist:

- [ ] Cost of attendance includes recruiting, treks, a second rent for the internship and visa costs.
- [ ] Offers are compared on present value of net cost and on conditions.
- [ ] Every scholarship condition is recorded with a date to check it.
- [ ] Employer sponsorship terms, including the clawback and tax treatment, are in writing.
- [ ] Loans are compared on amount received, total repaid, monthly payment, effective rate and protections.
- [ ] Accrued interest during the programme is in the balance at repayment.
- [ ] The amount borrowed matches the monthly budget gap plus a stated buffer.
- [ ] Dated facts carry the date checked and the official link.

Common mistakes:

1. **Comparing tuition instead of net cost.** Scholarships and living costs reverse many rankings.
2. **Ignoring award conditions.** A renewal condition or return-home rule can cost more than the award is worth.
3. **Missing external deadlines.** Many outside fellowships close before admission decisions arrive.
4. **Borrowing the maximum by default.** Interest runs from disbursement; borrow the budget gap.
5. **Forgetting accrued interest.** A loan of USD 41,000 became USD 47,617 by the start of repayment in the example.
6. **Choosing the lowest monthly payment.** Longer terms often cost more in total, as P2 on fifteen years shows.
7. **Ignoring fees.** A 2% fee turned a 7.75% headline rate into an 8.21% annual percentage rate in the example.
8. **Assuming the pre-2026 federal rules.** Grad PLUS no longer fills the gap for new borrowers; check current rules.
9. **Leaving currency risk open.** Savings in a weaker currency can fall short by thousands within a term.
10. **Signing a sponsorship without reading the clawback.** Leaving after ten months of a 24-month commitment
    costs USD 35,000 in the example.

## My notes and next steps

<!-- Guidance: Name the next three actions and the date each is due. -->

| Next step | Owner | Due |
|---|---|---|
| [Apply for SCH-004 and SCH-005] | [Your name] | YYYY-MM-DD |
| [Request written sponsorship terms] | [Your name] | YYYY-MM-DD |
| [Get two private loan quotes on the same term] | [Your name] | YYYY-MM-DD |

## Sources and further reading

<!-- Guidance: Add each school's cost of attendance page and award letter with its date. -->

Official and dated sources (checked 2026-10-28):

- Federal Student Aid, Interest rates for Federal Direct Loans first disbursed between 1 July 2026 and 30 June 2027,
  electronic announcement, June 2026, fsapartners.ed.gov.
- ETS, New Federal Student Loan Rules Took Effect, updated 1 July 2026, ets.org.
- GMAC, Applying to an MBA in 2026? What the changes to the US loan system could mean for you, May 2026, gmac.com.
- Federal Student Aid, studentaid.gov (loan types, limits, repayment plans).

Further reading: Berk and DeMarzo, *Corporate Finance* (time value of money and annuities); Brealey, Myers and
Allen, *Principles of Corporate Finance*. Open resource: OpenStax, *Principles of Finance* (CC BY-NC-SA 4.0), chapters on
time value of money and loans.

## Answer key

<!-- Guidance: Check worked example B for School B. -->

Worked example B, School B: present value at 6% = $82{,}000 + 82{,}000/1.06 = 159{,}358$ (Excel:
`=82000+NPV(6%,82000)`). With an 80% chance of renewal, the expected year 2 net cost is USD 91,000 and the expected
two-year net cost USD 173,000.

## Revision history

| Version | Date | Author | Change |
|---|---|---|---|
| 0.1 | YYYY-MM-DD | [Your name] | First plan from template |
| [0.2] | YYYY-MM-DD | [Your name] | [Award letters and loan quotes added] |

## Standard and licence note

Based on standard time-value-of-money methods (present value, annuity payment, effective rate) and dated public
facts from US Federal Student Aid, ETS and GMAC checked on 2026-10-28. The text, examples and numbers are original
and fictional; they are not affiliated with or endorsed by any business school, lender, test owner or government
body. Check the current official pages and your loan documents before you rely on any fact. Template licence: MIT.