[hinckley buzzard]

The reason graduate schools encourage the use of loans is simply to ensure no one works during that time

Who do you think teaches all the intro and undergraduate courses?

[ConservativeMind]

:-). Yes, for some programs. However, for a nationally-ranked graduate MBA I know of, students take 28 graduate classes in the first nine months—and they pay for them as normal classes.

Now, imagine you have group projects as half of your grade for every class.

That's why intense programs make you sign a contract stating you won't work and you have sufficient money without needing to work.