Where to save for Business School

[cube.37]

Hello everyone! I have a pretty simple question, with some background info which hopefully gives you enough to go off of:

Question: Where would you save if you had a good chance of going to business school in 2-3 years?

Background: I'm planning on attending business school in the next couple of years if I can get into a top 5-10 school. An MBA from one of these schools will most likely pay for itself around year 6 (taking into account opportunity costs like difference in income and cost of education). My plan today is to work for another 10 years, so theoretically it makes sense. I plan on saving in advance to pay for all, but more realistically a portion, of the cost of business school. I'm currently putting the money into a high yield savings account, but I'm wondering if it might be better to put it into an educational account (like a 529?) and if having that much cash in my savings account would disqualify me from any financial aid.

To put a twist on it, if I don't make it into a top 5-10, I don't think it would make financial sense to go to business school.

I know it's a first world problem...but I want to make the best of my financial situation to keep open the option of FIRE by 35-40 and was hoping someone might have some helpful advice.

Thank you in advance!

[mizzourah2006]

Why not a 529?

[kapnfriday]

I work in a Business School, though not top 5-10.  We are generally top 50.

Are you currently employed and if so does your employer offer a tuition assistance program?

I would do more research on the programs you're interested in - specifically around teaching and graduate research assistantships.  Many of our students are on one of these types of assistantships and not only have their tuition covered but also receive a stipend and health insurance.  I would ask what percentage of students are on assistantships and what the process/qualifications are for receiving them.  Top 5-10 schools may not offer these since they don't need to compete as hard for the best candidates.

I don't think the decision to go to any business school should be made solely based on the financial return.  This would be an investment in yourself, which many of the world's best investors (e.g., Warren Buffet) say is the best investment you can make.   There's more to it than just the immediate financial return.  There's the exposure to new ways of thinking, exposure to new/different types of people, and developing a network of contacts that could pay off in any number of unforeseen ways.  So think about whether it's an experience you really want to have and also keep in mind it's a lot easier to do when you're younger.     

[Mustache ride]

Most large companies offer tuition reimbursement for employees as already stated. I would check into that if you are currently employed. Around my area, most companies offer up to $5500 a year because anything over that they/you are required to pay taxes on it. Sometimes you are required to stay employed with the company for a certain time period after graduating, so make sure you ask about that as well. 

[Sydneystache]

Be frugal before, during and after b-school.

Read this blog if you haven't already

https://nomoreharvarddebt.com