Best MBA Student Loans

When you're looking for the best loans for business school, you'll want to compare lenders based on factors that can impact your loan cost and overall borrowing experience. Consider the following details as you choose the best MBA loan company for your needs:

• Loan Features: Check for borrowing limits that might apply to your MBA loan, as well as available repayment plans. Also check whether there are limitations on how you can use your loan funds.
• Interest rates and fees: Compare lenders based on their interest rates and loan fees. Make sure to read over the fine print to check for hidden fees as well.
• Application process: Find out what you need to apply for a MBA loan with each company, and whether their loan process is fully online. Also look for lenders that let you check your rate without any impact on your credit score.
• Qualification process: Compare lenders based on their minimum qualification requirements, which may include a minimum credit score or minimum income.
• Customer support: Look for lenders that offer a variety of ways to contact them, including phone support, email support, and live chat.
• Online user reviews: Read user testimonials for companies you're considering across major platforms like the Better Business Bureau (BBB) and Trustpilot.
• Perks and Bonuses: Look for perks and discounts you can benefit from, such as auto-pay discounts and good grade rewards.

Best MBA Student Loans for 2022 - Full Overview

In order to find the best MBA loan for your needs and goals, you'll want to see how the top lenders stack up in terms of their borrowing limits, interest rates, and loan terms. The following MBA lender reviews can help you get an overview of what each company has to offer, as well as their pros and cons.

What Are MBA Loans?

An MBA loan is a type of graduate school loan that is geared to individuals pursuing a Master of Business Administration (MBA) degree. These loans are taken out by individuals who want to pursue this advanced degree after completing a bachelor's degree program.

What Qualifications Are Required for MBA Student Loans?

Qualification requirements for MBA loans vary widely depending on the best MBA loan company chosen. Not only that, but some lenders in this space do not disclose their minimum requirements for approval at all.

That said, the basic requirements to qualify for MBA student loans include the following:

• Good credit, which entails having a FICO score of 670 or above, or a cosigner with good credit
• Several years of credit history (usually at least 36 months)
• Enrollment in an eligible MBA degree program, usually at least half-time
• U.S. citizenship or permanent resident status (with some lenders)

How Do MBA Student Loans Work?

MBA student loans work similarly to other types of student loans, although the exact terms can vary by lender. Read on to learn how much MBA students can borrow, how long MBA loans take to pay off, and more.

How Much Can MBA Students Borrow?

Most financial institutions that offer private MBA loans let students borrow up to the school-certified cost of attendance. This can include not only tuition and fees, but also room and board, books and supplies, transportation, and miscellaneous expenses.

That said, some lenders have annual or lifetime caps on their student loans that can reduce your borrowing potential.

What’s The Average MBA Student Loan Debt?

As of last count, the average student debt for individuals with Master of Business Administration (MBA) degrees worked out to $54,140 per borrower. This figure comes from the National Center for Education Statistics(NCES), which tracks educational data and loan data, as well as graduation rates by school and by degree program.

How Long Does It Take to Pay Off MBA Debt?

How long it takes to repay MBA loans depends on the chosen repayment plan and whether or not the borrower makes additional payments toward their debts. Lenders in this space offer repayment plans that last five to 20 years, and the majority do not charge prepayment penalties for loans that are paid off early.

Can You Refinance MBA Student Loans?

Borrowers can definitely refinance their MBA student loans, and that's true whether they borrow using private student loans or federal student loans for graduate school.

Types of MBA Student Loans

There are several types of MBA student loans to be aware of, including federal loan options and loans from private companies.

Federal Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans are available to MBA students regardless of their financial need. Since these loans are not subsidized by the federal government, they begin accruing interest right away. Loan limits are set at $20,500 per year for graduate students who take out Federal Direct Unsubsidized Loans, and fixed interest rates are set at 6.54% for loans disbursed between July 1, 2022 and June 30, 2023.

Also note that these loans come with an origination fee of 1.057%.

Federal Direct Graduate PLUS Loans

MBA students can also take out Direct PLUS loans to pay for their MBA regardless of their financial need. These loans are not subsidized, and a credit check is required. Direct PLUS Loans can also be used for the remainder of your college costs, as determined by your school, that are not covered with Federal Direct Unsubsidized Loans.

The interest rate is fixed at 7.54% for loans disbursed between July 1, 2022 and June 30, 2023. Also note that an origination fee of 4.228% applies.

Private MBA Loans

Private MBA loans are offered by private companies like College Ave Student Loans, SoFi, and Earnest. These loans typically let you borrow up to 100% of the cost of attendance for an MBA program, and they tend to come with no origination fees and no hidden fees.

Interest rates can also be lower for private student loans, and payment plans tend to be flexible.

That said, it's worth noting that private student loans do not qualify for federal protections like deferment and forbearance, or for income-driven repayment plans.

Important: For the time being, payments are paused and interest rates are set at 0% for most federal student loans due to the COVID-19 pandemic. This has been the case since March of 2020, and the current deferment period is set to expire on August 31, 2022.

Pros and Cons of Private MBA Student Loans

If you're considering private student loans for your MBA degree over federal student loans, there are some specific advantages and disadvantages to be aware of.

Pros of Private MBA Student Loans

• Qualify for lower interest rates. Many of the best MBA student loans come with interest rates that are lower than rates on federal student loans for graduate students.
• Avoid origination fees. Most private lenders also offer student loans with no origination fee, which is not the case for federal student loans.
• Shop around to get the best deal. When you go with private loans, you get the chance to shop around for the best deal. Meanwhile, federal student loans offer the same interest rates and terms for everyone.
• Access higher loan limits. Where some federal student loans for graduate students have annual loan limits, many private lenders let you borrow up to 100% of the school-certified cost of attendance.

Cons of Private MBA Student Loans

• Private student loans do not qualify for federal deferment or forbearance. Loans from private lenders do not offer access to federal forbearance or loan forgiveness programs.
• You cannot repay your loan on an income-driven plan. Private student loans do not qualify for income-driven repayment plans like Pay As You Earn (PAYE) or Income-Based Repayment (IBR).
• Good credit is required. A credit check is always required for private student loans, and you may need a cosigner if your credit score isn't in the "good" range or higher.
• Variable rates can adjust higher. Where federal student loans come with fixed rates that won't change, many private student loans come with variable rates that can increase based on market conditions.

How to Apply for MBA Student Loans

Applying for a private MBA student loan works similarly across all the major loan companies. The following steps can help you get the funding you need to earn your MBA.

• Step 1: Compare lenders that offer MBA loans based on their loan limits, interest rates, and loan fees.
• Step 2: Check each lender's minimum requirements for approval, including minimum credit score, credit history, or income requirements.
• Step 3: Check your rate with at least three or four lenders to see which one offers the best deal.
• Step 4: Choose a lender and move forward with the loan application. You'll need to share your contact information, your school and degree program, your Social Security number, and more.
• Step 5: Send additional information or documentation your lender requests, such as pay stubs or your tax return.
• Step 6: Find out whether you were approved for the MBA funding you need, which can take place within hours or over the course of several days.
• Step 7: Wait for your lender to send your loan funds directly to your school.
• Step 8: Begin repaying your MBA loan based on the payment plan you selected, or wait to make payments until the end of your loans' grace period.

Conclusion

The best MBA student loans can help you graduate with an advanced degree so you can earn more money, get a big promotion at work, or both. However, you'll want to make sure you don't borrow any more money than you need to, and that the loan you settle on has the best rates and terms you can qualify for.

Before you apply for a MBA loan, it's smart to compare all the lenders in our ranking based on metrics like their loan limits, loan fees, interest rates, and repayment options. With some basic research and comparison shopping, you can find out which student loan company can serve your needs best.