The Best Federal and Private MBA Student Loans

If you’re looking to fund an MBA program, the best student loans can help you cover the costs of tuition, living expenses, and fees. Federal loans like Direct Unsubsidized and Grad PLUS loans offer flexible repayment options and protections, while top private lenders provide competitive rates and customizable terms.

Before deciding, compare loan features, such as repayment plans and cosigner requirements, to find the financing that best aligns with your needs and financial goals. Read on for a breakdown of the best MBA student loans.

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Sallie Mae	Cosigners	4.8/5
Earnest	No fees	4.7/5
SoFi	Member benefits	4.7/5

Federal MBA student loans

The Department of Education administers the federal student loan program for eligible borrowers. We recommend prioritizing Direct Unsubsidized federal student loans to finance an MBA. Depending on your credit score and the chances you’ll use federal benefits, you might also prioritize federal Grad PLUS loans over private student loans. 

You must complete the Free Application for Federal Student Aid (FAFSA) to apply for federal student loans. The FAFSA determines your eligibility for federal financial aid, including loans, grants, scholarships, and work-study, based on factors like income, family size, and other financial details.

After completing the FAFSA, MBA students have two options to take out federal loans: Direct Unsubsidized Loans and Grad PLUS Loans. Grad PLUS loans have higher interest rates than Direct Unsubsidized Loans, so some borrowers will turn to a private student loan instead if they can qualify for a lower rate.

Here’s a closer look at the details.

Feature	Direct Unsubsidized Loan	Grad PLUS Loan
Rate	8.08%	9.08%
Origination Fee	1.057%	4.228%
Grace period	6 mo.	6 mo.
Eligibility	Available regardless of credit or financial need	Requires credit check or endorser
Repayment	10 – 25 years	10 – 25 years

Direct Unsubsidized Loan

The Direct Unsubsidized Loan is available to graduate and professional degree students regardless of financial need.

This loan has a six-month grace period before repayment begins. Depending on your chosen repayment plan, repayment may take 10 to 25 years. Students can request several types of deferment and forbearance programs if they can’t make payments.

Grad PLUS Loan

The Grad PLUS Loan is available to graduate and professional degree students. Unlike the Direct Unsubsidized Loan, borrowers must pass a credit check to qualify for this kind of loan. If they don’t, they need to add an endorser, which is similar to a cosigner.

A six-month grace period applies after graduation, leaving school, or dropping below half-time enrollment. Borrowers can choose from a variety of repayment plans ranging from 10 to 25 years.

The rate and fee on the Grad PLUS Loan are higher than the rate for Direct Unsubsidized Loans. However, if you have good credit or a creditworthy cosigner, you may be eligible for a lower rate with a private lender.

Best private MBA student loans

Private loans for college can provide the additional funds necessary to obtain your degree. Eligibility and rates for private MBA student loans can vary based on credit score, income, whether you have an eligible cosigner and the loan repayment term.

The LendEDU team has reviewed the companies below, which are our picks for the best MBA student loans.

College Ave

Best Overall

5.0 _/5

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Why it’s one of the best

College Ave is an online lender offering business school students a customizable MBA loan. Borrowers can choose from fixed- or variable-rate loans with five-, eight-, 10-, or 15-year repayment terms. You can borrow up to 100% of the cost of your MBA degree.

Cosigners are not required for College Ave MBA loans, but applying with one could make it easier to get approved. Cosigner release is available once you’ve completed half of your loan repayment term. Your cosigner must be a U.S. citizen or permanent resident. 

You’ll need to attend an eligible school and enroll in an accredited MBA program to qualify. You can make payments while in school or defer them. College Ave offers a nine-month grace period after graduating, which is longer than the six months many lenders offer.

• Get up to 100% of school-certified costs of attendance covered
• Your choice between 16 different repayment schedules
• Get a credit decision in just 3 minutes

Loan details

Rates (APR)	3.87% – 14.49%
Loan amounts	$1,000 – $150,000
Repayment terms	5, 8, 10, or 15 years

Sallie Mae

Best for Cosigners

4.8 _/5

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Why it’s one of the best

Sallie Mae offers a wide variety of student loans, including MBA loans. With a loan from Sallie Mae, borrowers can cover up to 100% of their costs, including tuition, fees, books, and living expenses. The lender doesn’t impose an aggregate borrowing limit for MBA students, which may appeal to those attending pricier programs. 

Students can qualify for up to 48 months of deferment during an internship after graduation. This can allow students to take on low-paying positions without worrying about their student loans. Borrowers are also eligible for 12 months of interest-only payments after the grace period is over, which adds even more flexibility.

To apply, you must be a U.S. citizen or permanent resident or have a cosigner who is a U.S. citizen or permanent resident. Only students earning a full MBA degree are eligible, not those pursuing a business certificate.

• Cosigner release after 12 months of consecutive on-time payments
• Defer payments for up to 48 months during an internship
• Available for students enrolled less than half-time

Loan details

Rates (APR)	3.89% – 15.70%
Loan amounts	Up to 100% of certified school costs
Repayment terms	10 – 15 years

Earnest 

Best for No Fees

4.7 _/5

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Why it’s one of the best

Earnest is an online lender offering student loans for undergraduate and graduate school, including business school. You can choose from a fixed- or variable-rate loan with repayment terms of five, seven, 10, 12, or 15 years. Only full-time MBA students are eligible for these loans. 

Cosigners are optional, but Earnest does not offer cosigner release. You’d need to refinance into a new student loan to remove a cosigner. Earnest offers MBA student loans in every state except Nevada. 

In addition to deferred payment options and a nine-month grace period, Earnest offers a skip-a-payment benefit. You can skip a payment once per year with no fees. The skipped payment is treated as forbearance, and interest may be capitalized, meaning it’s added to your unpaid principal balance.

• Skip a payment once per year if needed
• No fees
• Check your rate without affecting your credit

Loan details

Rates (APR)	Starting at 3.99%
Loan amounts	Up to 100% of certified school costs
Repayment terms	5, 7, 10, 12, or 15 years

SoFi

Best for Member Benefits

4.7 _/5

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Why it’s one of the best

SoFi stands out as a top lender for MBA loans due to its extensive member benefits and support services. Borrowers can choose from fixed- or variable-rate loans with repayment terms ranging from five to 20 years. SoFi allows you to borrow up to the full cost of your MBA program, covering 100% of your school-certified costs.

SoFi offers a range of member benefits, including networking events, financial planning, and a $250 cash bonus for earning a GPA of 3.0 or higher.

While cosigners are not required for SoFi MBA loans, having one could increase your chances of approval and help you secure a lower interest rate. SoFi also offers a cosigner release option, allowing the cosigner to be removed from the loan after a certain number of on-time payments.

To qualify for a SoFi MBA loan, you must be enrolled in an eligible and accredited MBA program. SoFi provides flexible repayment options, including the ability to make payments while in school or to defer them until after graduation. After completing your degree, SoFi offers a six-month grace period before repayment begins, giving you time to secure a job and start earning.

• Unique benefits include networking, financial planning, and a cash bonus
• No fees
• Cosigner release available

Loan details

Rates (APR)	3.99% – 15.86%
Loan amounts	Up to 100% of certified school costs
Repayment terms	5, 7, 10, or 15 years

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Best graduate student loans & Best private student loans

How do MBA loans differ from standard graduate student loans?

Most private lenders offer specific loans for MBA students. The terms are similar to other graduate student loans, but you might get additional benefits when you apply for MBA-specific loans. 

For example, Sallie Mae offers the same interest rates for undergraduate and MBA loans. However, MBA students with a Sallie Mae loan can defer payments for up to 48 months during an internship, which isn’t an option for undergraduate students. The extended deferment might make it easier to afford rent and other essentials while you complete the internship. 

As you search for the best MBA student loan, compare interest rates, repayment terms, and benefits such as extended forbearance periods, unique deferments, and networking opportunities. The benefits might be the deciding factor if the repayment terms are similar. 

How does repayment work on an MBA loan?

Most MBA student loan lenders offer repayment terms ranging from five to 15 years, along with various in-school repayment options such as immediate payments, interest-only payments, a fixed $25 monthly payment, or full deferment until after graduation. The shorter the term length, the less interest you’ll pay. For example, let’s say you have a $15,000 loan with a 6% interest rate.

You choose an “immediate” repayment plan and begin making payments while you’re in school. If you have a five-year repayment plan, you’ll pay a total of $2,400 toward interest. But if you have a 10-year plan, you’ll pay $9,984 toward interest—almost four times more.

Repayment term	Total interest paid
5 years	$2,400
10 years	$9,984

The benefit of a longer repayment term is lower monthly payments. For example, you might pay $290 monthly for a $15,000 loan with a five-year repayment term and a 6% interest rate. However, with a longer repayment term of 10 years, your monthly payments could drop to $167.

Feature	5-year term	10-year term
Monthly payment	$290	$167
Total interest paid	$2,400	$9,984

You aren’t required to make any payments while you’re in school, but choosing an in-school repayment option can help lower the overall loan cost, saving you thousands of dollars in interest.

Is an MBA loan worth it?

Taking out an MBA student loan is a major decision. Here’s what to consider.

• Future income potential: Data shows that workers with advanced degrees, including MBAs, earn more and experience less unemployment than workers with fewer degrees. As you consider whether an MBA is worth it, calculate how much you expect to earn after you complete it. 
• Job promotions: Could an MBA degree lead to a job promotion or a new role? If so, it might be worth the investment. Some companies prioritize candidates with advanced degrees, and an MBA might help you secure a new role with more responsibilities, better pay, and competitive benefits.  
• Career goals: Your long-term career goals can help you determine whether an MBA is worth it. Some jobs are more likely to require an MBA degree. Consider where you see yourself in your career 10 to 15 years from now. Does an MBA degree play an essential role in helping you achieve your goals? If so, it’s likely worth it.

How to choose the best MBA student loan

Getting an MBA can help set the stage for a successful career, but you’re also likely to leave school with significant debt. Data shows the average MBA student borrower graduates with $66,000 in student loans. However, your total debt could reach six figures if you’re enrolled in a higher-cost program. 

By researching and comparing your options, you can minimize the total debt you take on for your degree.

Here’s what to keep in mind when applying for MBA student loans:

1. Maximize federal Direct Unsubsidized Loans first. Federal student loans are the safest option because they have protections private lenders don’t offer and competitive fixed rates.
2. Choose between the Grad PLUS Loan and a private loan. The Grad PLUS Loan has the same protections as the Unsubsidized Loan but comes with higher interest rates. If you or your cosigner have good or excellent credit and a steady income, you may be eligible for a lower rate with a private lender.
3. Choose an affordable repayment plan. Whichever path you choose, make sure you can afford your payments after you graduate. Doing this can minimize the risk of missing a payment down the road.

The main reason for taking a federal loan is possible forgiveness. If you’re concerned about forgiveness due to death, compare the cost of term life insurance to the savings on the loan. If you work for a nonprofit services firm that may allow forgiveness, that could also factor in. 

Payment terms could also lead one to use federal loans because of lower loan payment amounts due to longer payback periods.

Michael Menninger, CFP®

How to apply for MBA student loans

Applying is the next step if you know you’ll need student loans to pay for business school. Here’s what to expect as you seek funding for an MBA program. 

1. Estimate your loan needs. If you’re unsure of your total cost of attendance, contact your school’s financial aid office to see whether it can provide you with numbers. Knowing how much you may need to borrow can help you decide whether to apply for federal student loans, private loans, or both. 
2. Complete the FAFSA. The Department of Education has streamlined the FAFSA to make it easier to complete. You’ll enter information about yourself, your finances, and the MBA schools where you’re applying. You can add up to 20 schools initially, but you can add more if you’re unsure where you’ll enroll. 
3. Review your financial aid eligibility. Once you complete the FAFSA, the schools listed on your application will notify you of the types of aid you qualify for. That can include Direct Unsubsidized Loans and school-based aid.
4. Apply for Grad PLUS Loans if necessary. If your aid award doesn’t cover the full cost of attendance, you can submit a separate application for PLUS Loans. You’ll tell the Department of Education how much you want to borrow and which school you’re attending. You’ll also consent to a credit check.
5. Compare private MBA loans. If you need private student loans to pay for the remaining costs of an MBA degree, shop around. Request rate quotes or preapproval from at least three private lenders offering MBA loans to see what terms you qualify for. 
6. Apply for a private loan. You can apply for private MBA loans online if you’ve chosen a lender. You’ll share personal and financial details and information about your MBA program and loan needs. You and your cosigner, if you have one, will likely need to consent to a credit check; most private lenders require it. 

It may be helpful to check your credit before applying for Grad PLUS Loans or private student loans. Knowing what’s on your credit history can give you an idea of which loans you’re most likely to qualify for. It’s also an opportunity to correct credit reporting errors that may hurt your score. 

Alternatives to MBA loans

MBA student loans are one of many ways to fund your degree. Consider the following alternatives if you want to minimize your loans or avoid them altogether.

• Employer funding: Many companies help pay for employees to earn advanced degrees, including MBAs. Check whether your employer will pay for some or all of your degree. If so, it can make it easier to afford the remaining cost. 
• Scholarships and grants: You might qualify for scholarships or grants from your school or an outside organization. For example, Goldman Sachs offers MBA fellowships, and the military provides MBA Merit Scholarships for veterans and active-duty members. Make sure to ask about additional scholarship opportunities when you apply to your program. 
• Savings: You might be able to pay for some of your MBA with savings. You may need to save for multiple years, but it can help you avoid or minimize student loans. 
• Attend part-time: Some MBA students attend part-time to help spread out the program’s cost. Consider whether you can take a few classes each semester to gradually earn your degree and pay for it over time. 

FAQ

Which MBA student loan is the best?

The best type of MBA student loan depends on what you can qualify for. Federal loans offer more repayment options and extra benefits, including longer deferment periods. But if you can afford to pay off the loan faster, a private loan with a lower interest rate may be better.

Do I need a cosigner for MBA student loans?

If you’re taking out federal student loans, you won’t need a cosigner in most cases. However, if you’re considering Grad PLUS loans, a negative event on your credit history may require you to add an endorser, which is similar to a cosigner.

If you’re taking out private student loans, you may need a cosigner unless you have a good credit score and a steady source of income.

Do MBA student loans cover living expenses?

MBA student loans almost always cover living expenses such as housing, transportation, groceries, and more. Make sure to understand what your loans will cover before you take them out.

How much can I borrow with MBA student loans?

The amount you can borrow with MBA student loans depends on the specific lender, but most let borrowers take out the annual cost of attendance. Some lenders may have an aggregate limit, while others do not.

When does repayment on MBA student loans start?

Repayment on MBA loans begins when the grace period is over. For federal student loan borrowers, the grace period lasts six months after graduation, leaving school, or dropping below part-time status. The grace period for most private loans is between six and nine months.

Check your official loan documents to see when repayment begins. If you have federal student loans and can’t afford repayment right away, you may be able to defer your loans and delay repayment.

Is it possible to get an MBA student loan as an executive?

Federal and private student loans are available for executives pursuing an MBA degree. You’re not barred from applying for either type of loan simply because you hold an executive position. That could work to your advantage if you’re seeking private loans because a stable income may be required to qualify. 

However, consider other funding sources before proceeding with MBA student loans. For example, your employer may be willing to offer full or partial sponsorship to help you pay for your degree. Sponsorships allow you to earn an MBA while working, with your employer covering your attendance costs or reimbursing you later. 

How we picked the best MBA student loans

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best MBA student loans