The Best Federal and Private MBA Student Loans

Getting a Master of Business Administration (MBA) degree can broaden your career and financial opportunities.

However, the average cost of an MBA program is roughly $60,000, and at top schools, it can exceed $200,000. Understanding your financing options can help you get the education you want while minimizing your long-term costs. Here’s a look at our top choices for the best MBA student loans.

Table of Contents

1. Federal student loans
2. 3 best private MBA student loans
   1. Citizens Bank
   2. Sallie Mae
   3. Earnest
3. How to find the best MBA student loan for you
4. FAQ

Why federal student loans are best for low-cost programs

Federal student loans are virtually always better than private loans for undergraduate students. However, that’s not always the case for graduate programs and beyond, especially if you have great credit and a high income.

If you plan to attend a school with relatively low tuition costs, it may be best to use federal Direct Unsubsidized Loans.

Here’s a look at the loan terms for the 2025 – 2026 academic year:

• Loan limit: $20,500 annually
• Interest rate: 8.08% fixed
• Loan fee: 1.057% origination
• Repayment terms: 10-year standard repayment term; may be extended to up to 30 years with income-driven repayment plan options.
• Minimum credit score: No credit check
• Grace period: Six months

Pros

• No income or credit score requirement

• Fixed interest rate only

• Flexible repayment options, particularly for struggling borrowers

Cons

• Annual borrowing cap may not cover some MBA programs

• Upfront loan fees

• No chance to get a better rate with good credit

3 best private MBA student loans

It may make sense to use private loans to help you bridge funding gaps—or even as an alternative to federal loans in certain circumstances. Here are our top choices for private loans for MBA programs.

Citizens Bank

Best Private MBA Loan

4.7 _/5

View Rates

---

What to know about Citizens’ MBA loan

• Offers multi-year approval
• Large loan limit
• Flexible repayment options

• Requires half-time enrollment
• Doesn’t disclose credit requirements
• Stiff payment requirements for cosigner release

Citizens Bank can be a great option for MBA students, primarily because of its multi-year approval feature. If you’re eligible, the lender doesn’t require you to reapply each year—just let Citizens know how much you need.

While Citizens Bank doesn’t provide minimum credit score criteria, it offers prequalification, which allows you to gauge your eligibility and potential loan terms with no impact on your credit score.

Fixed rates (APR)	3.49% – 13.57%
Variable rates (APR)	4.95% – 13.70%
Loan amounts	$1,000 – $300,000
Repayment terms	5, 10, or 15 years
Repayment options	Immediate, deferred, and interest-only during school
Grace period	6 months
Cosigner release	Yes; must make 36 consecutive on-time payments and meet credit and income guidelines

Eligibility requirements

• Enrollment requirement: Half-time
• States: 50 states
• Credit score requirement: 640+
• Income requirement: $24,000/year

Sallie Mae

Best for Part-Time MBA Students

4.8 _/5

View Rates

---

What to know about Sallie Mae’s MBA loan

• No stated loan maximum
• Available to part-time students
• Short cosigner release program

• No prequalification tool
• Doesn’t disclose minimum income and credit score requirements
• Limited flexibility with repayment terms

While many private student lenders require you to attend school at least half-time to qualify, Sallie Mae can be the perfect choice for part-time MBA students. The lender also offers cosigner release after just 12 months of on-time payments.

That said, you may want to check your credit score before you apply. Sallie Mae doesn’t disclose credit score requirements, and there’s no way to prequalify with no impact on your credit score.

Fixed rates (APR)	3.45% – 14.99%
Variable rates (APR)	4.37% – 13.98%
Loan amounts	$1,000 – 100% of cost of attendance
Repayment terms	10 – 15 years
Repayment options	Deferred, $25 immediate fixed, and interest-only
Grace period	6 months; interest-only payments for the first 12 months after grace period
Cosigner release	Yes; must make 12 consecutive on-time payments and meet credit and income guidelines

Eligibility requirements

• Enrollment requirement: Part-time
• States: 50 states
• Credit score requirement: Mid-600s
• Income requirement: Not disclosed

Earnest

Best for Maximizing Savings

4.7 _/5

View Rates

---

What to know about Earnest’s MBA loan

• Rate match guarantee
• Transparent about eligibility criteria
• Flexible repayment options

• No cosigner release program
• Requires half-time enrollment
• Not available in all 50 states

If your top priority is to get the best interest rate possible, it wouldn’t hurt to at least get a quote from Earnest. The lender offers to match any competitor rate and will give you a $100 Amazon gift card once the match is finalized.

Earnest also offers plenty of flexibility with your repayment terms, making it easier to find a plan that fits your budget. While you can check your rate without affecting your credit score, Earnest also offers clear details about what it requires for approval.

Fixed rates (APR)	Starting at 3.47%
Variable rates (APR)	Starting at 4.27%
Loan amounts	$1,000 – $400,000
Repayment terms	5 – 20 years
Repayment options	Deferred, full immediate, $25 immediate, and interest-only
Grace period	9 months
Cosigner release	No

Eligibility requirements

• Enrollment requirement: Half-time
• States: 49 states (excluding Nevada)
• Credit score requirement: 650
• Income requirement: $35,000

How to find the best MBA student loan for you

With the high cost of MBA programs, choosing the right student loan is critical. Shopping around can help you secure better rates, more flexibility, and borrower-friendly terms that fit your financial goals during and after business school.

Here’s what to consider when comparing your options:

• Interest rates: Look at the interest rates each lender offers—a fixed rate is usually preferable—and check for rate discounts, such as autopay incentives, which can lower your cost over time.
• Repayment flexibility: Choose a lender that offers multiple repayment options—both in-school and deferred plans—and a generous grace period after graduation. You’ll also want to make sure the lender you choose offers a repayment term that works for your budget.
• Cosigner release: If you need a cosigner to get approved, focus on lenders that offer a clear and attainable path to release them from the loan after consistent on-time payments.
• Eligibility requirements: Check each lender’s eligibility requirements to get a feel for your chances of getting approved. Keep in mind, though, that some are more transparent than others. If a lender offers prequalification, get a rate quote.
• Customer service: Responsive, transparent support can make a big difference if issues arise. Look for lenders with strong reputations and helpful tools for managing your loan. You can read online customer reviews to get a sense of what your experience will look like.

FAQ

What is the average student loan for an MBA?

According to Education Data Initiative, 57.8% of MBA graduates borrow money to finance their program, with an average of $81,218 in total debt. For those who only have graduate school debt, the average burden is $63,146.

Is an MBA worth it financially?

Obtaining an MBA can be a significant investment, but data show that it can be well worth it. According to the Graduate Management Admission Council, the projected starting salary for MBA graduates is $120,000, which is around $50,000 higher than that of bachelor’s degree graduates.

How much can I borrow for my MBA?

Loan limits will depend on which lender and loan program you choose. For example, federal Direct Unsubsidized Loans have a $20,500 annual limit, but the Direct PLUS loan program has no such cap—though it also comes with a higher interest rate and loan fee.

Private lenders typically offer up to 100% of your school’s certified cost of attendance, but some may also have set dollar limits over the course of your MBA program.

Recap of the best private MBA student loans