Best MBA Student Loans

Getting your MBA is a worthwhile investment. It can open up doors for you in business and make it much easier to advance in your career. But MBAs can be expensive, too, with tuition at many top MBA schools exceeding $60,000 per year.

If you’ve considered all options for free financial aid–such as grants, scholarships, and employer-sponsored aid–and are still in need of additional financing, then MBA student loans can help.

In this guide:

• How to get started when looking for MBA student loans
• Federal MBA student loans
• Best private MBA student loans
• How to choose the best MBA student loan
• Summary of MBA student loans

How to get started when looking for MBA student loans

When paying for your MBA, you’ll want to keep your borrowing costs as low as possible. This means that you should borrow the maximum limit available to you in the form of federal student loans before turning to private lenders.

Federal student loans have better borrower protections, such as the potential for student loan forgiveness, broader eligibility criteria, and more flexibility in loan repayment plans.

That’s why maxing out federal loans makes sense for most MBA students before getting any private MBA loans.

Federal MBA student loans

To become eligible for federal loans, you’ll need to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA can be completed online and is a prerequisite to getting many other types of aid, including scholarships and access to work-study funds.

Once completed, MBA students can borrow funds with the Direct Unsubsidized Loan or the Grad PLUS Loan.

Direct Unsubsidized Loan

View Rates

Fixed APR

6.08%

Origination Fee

1.059%

Loan Amount

Up to $20,500

The Direct Unsubsidized Loan is available to graduate and professional degree students. There is no requirement for demonstrating financial need which makes this loan a good place to start for financing your degree.

With this loan, you’ll have a six-month grace period before repayment is required. Repayment is generally between 10 to 25 years, depending on the repayment plan you choose.

Grad PLUS Loan

View Rates

Fixed APR

7.08%

Origination Fee

4.236%

Loan Amount

Up to the total cost of attendance

The Grad PLUS Loan is available to graduate and professional degree students. Unlike the Direct Unsubsidized Loan, this loan requires borrowers not to have an adverse credit history.

There is a six-month grace period after you graduate, leave school, or drop below half-time enrollment before repayment is required. Repayment can be made within 10 to 25 years depending on your repayment plan.

The rate on the Grad PLUS Loan is one of the highest offered on federal student loans. If you have good credit or a creditworthy cosigner, you may be able to receive a lower rate through a private lender.

Best private MBA student loans

Private loans for college can give you the additional funds necessary to obtain your degree. Eligibility and rates for private MBA student loans can vary based on:

• Your credit score
• Your income
• Whether you have a creditworthy cosigner
• The loan repayment term

The companies below have been reviewed by our team and are our picks for the best MBA student loans from our partners.

1) College Ave

Check Rates

Fixed Rates

4.39% – 11.98%

Variable Rates

1.24% – 10.97%

Loan Amounts

$1,000 – $150,000

LendEDU Rating: 5/5

College Ave is an online lender offer loan products for many different types of degrees. One such product is the company’s customizable MBA loan, available to students in business school. See below for more information on College Ave’s MBA loans.

• Repayment Terms: 5, 8, 10, or 15 years
• In-school repayment options: Options include deferment, monthly interest payments, $25 monthly payments, and full payments.
• Grace Period: 9 months
• Cosigner Release: After 24 consecutive on-time payments
• Unique benefits: Apply and receive your credit decision within 3 minutes.

2) Earnest

Check Rates

Fixed Rates

As low as 4.00%

Variable Rates

As low as 1.24%

Loan Amounts

$1,000 – 100% of school-certified cost of attendance

LendEDU Rating: 4.8/5

Earnest is an online lender offering both student and personal loans. One of the company’s student loan offerings covers graduate school, which includes business school. You can learn more about Earnest’s MBA loans here:

• Soft-Credit Check: You can see your rate with a soft credit check. Getting a loan takes a hard credit check.
• Repayment Terms: 5, 7, 10, 12, or 15 years
• In-school repayment options: Options include deferment, $25 monthly payments, monthly interest payments, and full payments.
• Grace Period: 9 months
• Cosigner Release: Earnest does not have any cosigner release options, but borrowers who are eligible to refinance can take out the new loan without a cosigner.
• Unique benefits: You can skip one payment per year.

3) Citizens Bank

Check Rates

Fixed Rates

4.59% – 10.07%

Variable Rates

1.42% – 9.58%

Loan Amounts

$1,000 – $225,000

LendEDU Rating: 4.4/5

Citizens Bank, the 13th-largest bank in the United States, offers a variety of loans online. The company’s MBA student loans are one of many offerings specifically geared toward graduate students. Here is some more information about Citizens Bank’s MBA loans:

• Soft-Credit Check: You can get a rate quote with a soft credit check. If you apply for multi-year approval, you can take out loans after your first year without a hard credit check.
• Repayment Terms: 5, 10, or 15 years
• In-school repayment options: Options include deferment, interest-only payments, or full payments.
• Grace Period: 6 months
• Cosigner Release: After 36 consecutive on-time payments
• Unique benefits: 0.25% autopay rate reduction, 0.25% loyalty rate reduction

4) LendKey

Check Rates

Fixed Rates

4.74% – 11.85%

Variable Rates

1.25% – 9.44%

Loan Amounts

$1,000 – $160,000

LendEDU Rating: 4/5

LendKey is an online platform designed to help borrowers find loans from banks and credit unions. The company offers a uniform student loan product for all degrees. You can learn more about LendKey’s student loans below:

• Soft Credit Check: You can get a rate quote with a soft credit check.
• Repayment Terms: 5 years
• In-school Repayment Options: Options include $25 per month or a monthly interest payment.
• Grace Period: 6 months
• Cosigner Release: After 12 – 36 consecutive on-time payments
• Unique Benefits: No prepayment penalties

5) Ascent

Check Rates

Fixed Rates

6.64% – 11.92%

Variable Rates

5.71% – 11.17%

Loan Amounts

$1,000 – $200,000

LendEDU Rating: 4/5

Ascent is an online student lender offering a specific graduate student loan for students attending medical school. Borrowers can apply for this loan with or without a cosigner depending on whether or not they meet the eligibility requirements. Here is some more information about the Ascent Medical Student Loan:

• Soft Credit Check: You can qualify and see your rate with a soft credit check.
• Repayment Terms: 5, 10, or 15 years
• In-school Repayment Options: Your options include monthly interest payments, monthly payments of $25, deferred repayment.
• Grace Period: 9 months
• Unique Benefits: The company offers borrowers 1% cash back upon graduation.

How to choose the best MBA student loan

While getting an MBA can help set the stage for a successful career, you’re likely to leave school with a lot of debt. In fact, data shows that the average student graduates from their MBA program with $66,000 in debt.

By doing your research and comparing your options, you can minimize the total debt you need to take on for your degree.

Here are a few things to keep in mind when applying for MBA student loans:

1. Maximize federal Direct Unsubsidized Loans first. Federal student loans are the safest borrowing option because they have protections not offered by private lenders. Maximize the amount of Direct Unsubsidized Loans first because they typically have the lowest rates offered of any MBA loans.
2. Choose between the Grad PLUS Loan and a private loan. The Grad PLUS Loan has the same protections as the unsubsidized loan but has higher interest rates. If you have good-to-excellent credit and a steady income, you may be able to receive a lower rate with a private lender.
3. Put together a repayment plan. Whichever path you choose, make sure you meet the repayment requirements of your loan. By doing this, you can minimize the risk of missing a payment down the road.

If you are still unsure about your financing options, check out our guide on how to pay for an MBA.

Summary of MBA student loans

Here is a comparison of all the options discussed on this page.

>> Read More: Other types of student loans