Higher Wage or Educational AssistantMy current wage is $61K and plus employer paid education 25K for 2 year MBA program, which will starts on 06/2007; I also receive a job offer for $75K with no education assistant at the 1st year of work. In the current company, I must serve the company for at least 1 year after the completion of the MBA degree; otherwise, i would have to pay back all the $$$ they pay for the degree. Questions: 1) Should i leave the current job with the higher pay job and paid for the MBA degree on my own? 2) At which company I work could bring me more TAX benefit? Thanks!
If I really wanted to earn my MBA, I'd stay put and let the employer pay for my education. All that means is you're going to be required to stay with this employer for the next 3 years in exchange for essentially getting a free education. The total value of the job you have, adding in the cost of the education, will be $86K. If you take the other job, you'll only get $75K from which you need to subtract at least a portion of the $25K education expense, which brings your earnings down to $50K. The same proportions will be in place if you spread the cost of the education over two years. With regard to taxes, you'll be paying more taxes on a higher earned income BEFORE you start paying tuition. If you stay where you are, you're taxes should be lower because the company will be paying the school directly, I presume. Seems like you'll be better off staying where you are. Paul W. Barada The Negotiation Expert | |
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