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Best MBA Student Loans
The best MBA student loans can help you cover the cost of a Master of Business Administration (MBA) degree, which can lead to promotions and higher earnings. Find out where to look for the lowest MBA loan rates, and what to consider before you apply.
Written by:Holly Johnson
If you need student loans for business school but you're not
sure where to turn, the best private MBA loans may be what you need. These
loans may let you borrow up to 100% of the cost of attendance, and they can be
repaid with flexible terms. Our team of financial experts reviewed and compared
more than 30 online lenders to help you get funded, so read on to learn about
the best MBA loans that made our ranking.
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Top Picks for The Best MBA Student Loans
- Ascent — Best for Flexibility
- College Ave Student Loans — Best Overall
- SoFi — Best for Excellent Credit
- Sallie Mae — Best for Part-Time Students
- Earnest — Best for No Fees
Best MBA Student Loans for 2023 - 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.
Ascent — Best for Flexibility
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Ascent offers MBA loans with competitive rates and flexible loan terms. For example, you can choose from loans with a fixed or variable rate, and among payment plans that last for seven to 15 years. You can also choose to make full principal and interest payments during school, interest-only payments during school, or deferred payments that begin up to nine months after you graduate. Ascent also lets you check your rate and your approval odds without a hard inquiry on your credit report.
Pros
Cons
Main features of the Ascent Funding MBS student loan - rates, credit score, repayment, etc.
- Fixed Rate: 5.62% - 16.16%
- Variable Rate: 6.75% - 15.76%
- Credit Score Required: Varies
- Loan amounts up to $400,000
- Loan Lengths: 7,10,12, 15, and 20-year options
Ascent does not list a minimum credit score requirement, and borrowers can apply with or without a cosigner.
The Bottom Line
Ascent Funding’s graduate loans offer maximum flexibility, allowing students to choose the payment plan that best fits their financial needs. Since they provide personalized rates without a hard check on credit score, consider Ascent as a lending partner who will work with you throughout your schooling and reward you for responsible lending.
Try AscentRead more in the full Ascent review.
College Ave Student Loans — Best Overall
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College Ave Student Loans offers graduate school loans with competitive rates and terms, as well as flexible repayment options that can last for up to 15 years. Borrowers can check their rate and gauge their approval odds before they apply, and monthly payments can begin during or after school. The entire application process takes place online and requires less than three minutes to complete, which is a major consideration if you want to get the loan process started quickly.
Pros
Cons
MBA loans from College Ave Student Loans can come with a variable APR of 1.99% to 10.97% or a fixed APR of 3.99% to 11.99%. Borrowers can repay their loans over five, eight, 10 or 15 years, and payments can begin during or after school. This lender does list a minimum credit score range of the mid-700's and a minimum income of $35,000 for applicants. If you don't meet those requirements, you may need to apply for a MBA loan with a cosigner.
The Bottom Line
Consider College Ave Student Loans if you want to access a MBA loan with the best possible rates and terms, and if you want the entire application process to take place online.
Try CollegeAve
Read more in the full CollegeAve review.
SoFi — Best for Excellent Credit
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SoFi is another top lender that offers MBA loans with excellent rates and terms, as well as the ability to check your rate before you apply. This fintech company is known for offering student loans with no origination fees and no hidden fees, and they even offer banking services that let you earn rewards you can use to pay down student debt. While SoFi does not disclose their minimum credit score or income requirements, MBA loans from this company are geared to individuals with good credit.
Pros
Cons
SoFi offers graduate school and MBA loans that come with variable APRs of 2.64% to 11.98% and fixed APRs of 4.75% to 12.65%. Repayment plans can last for five, seven, 10, or 15 years, and borrowers can begin repaying their loans during school or defer payments until after they graduate. While SoFi does not disclose their minimum requirements for loan approval, their loan products are geared to individuals who have a long credit history and a high credit score.
The Bottom Line
Consider SoFi for your MBA loan if you have good credit and a solid income or a job offer letter that lists a start date of within a year. This lender offers highly competitive rates and terms, and you can check your rate before you apply.
Try SoFiRead more in the full SoFi review.
Sallie Mae — Best for Part-Time Students
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Sallie Mae stands out for their MBA loans due to the fact that applicants can qualify even if they are enrolled in school at less than half-time. This makes Sallie Mae a good choice for MBA students who are pursuing their studies part-time while they work or continue caring for family members. Loans from Sallie Mae also come with competitive rates and terms, and there are no origination fees or hidden fees to be aware of.
Pros
Cons
MBA loans from Sallie Mae can come with variable APRs of 2.50% to 12.22% or fixed APRs of 4.25% to 12.92% based on creditworthiness. Repayment terms can last from five years to 20 years, and these loans come with no origination fees or hidden fees. Sallie Mae does not disclose their minimum requirements for loan approval. However, they do say that they have a 94% approval rate for MBA loans with a cosigner through their Multi-Year Advantage program.
The Bottom Line
Consider Sallie Mae for your MBA loan if you are planning to attend graduate school part-time while you work or spend time on other commitments.
Try Sallie MaeRead more in the full Sallie Mae review.
Earnest — Best for No Fees
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Earnest is another top lender that offers MBA loans, and they do so with no origination fees and no hidden fees of any kind. This company also gives borrowers the chance to reduce their rate with an auto-pay discount, and it may even be possible to skip a payment (with approval) up to once per year. Earnest also lets you choose to make payments during school or defer payments for up to nine months after you graduate.
Pros
Cons
Earnest offers attractive MBA loan options for individuals with a credit score of at least 650 and at least three years of credit history. Variable APRs for these loans start at just .94% and fixed APRs can be as low as 3.24%. Earnest MBA loans come with no origination fees and no hidden fees, and borrowers can skip a payment up to once per year.
The Bottom Line
If you're looking for the lowest MBA loan rates but you also want to avoid fees, check out graduate school loans from Earnest. This company even lets you skip a payment up to once per year, and you can apply with or without a cosigner.
Try EarnestRead more in the full Earnest review.
Discover — Best for Rewards
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If you're interested in MBA loans that let you gamify your borrowing experience, consider student loans from Discover. This lender offers incredibly competitive rates and terms already, but they also offer rewards for good grades and for setting up automatic payments. In fact, Discover offers a .25% auto-pay reward discount plus a one-time cash reward of 1% of the loan amount for each new Discover MBA loan when you have a GPA of 3.0 or higher (or equivalent).
Pros
Cons
Discover lets MBA students borrow up to 100% of the cost of attendance, and they offer competitive variable APRs from 2.74% to 9.34% and fixed APRs from 4.49% to 10.99%. They do not disclose a minimum credit score requirement, but their low rates and terms imply that you need good credit (or a cosigner with good credit) to qualify. Discover lets MBA students repay their loans over 20 years with no other option. However, their loans come with no origination fees, no prepayment penalties, and no hidden fees.
The Bottom Line
Consider Discover if you want to earn rewards for setting up auto-pay and getting good grades. Also check out this lender if your credit is good or excellent and you want to qualify for loans with the best possible rates and terms.
Try DiscoverRead more in the full Discover review.
MPower Financing — Best for International Students7.
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If you're an international student who wants to pursue their MBA in the United States, MPower Financing can help you get funding with no credit history and no requirement for a cosigner. These loans can also help you build your U.S. credit history so you can begin working toward the life you want after you graduate.
Pros
Cons
MBA loans from MPower Financing come with a fixed interest rate of 10.49% if you qualify for all their discounts, including an auto-pay discount. Loans can be repaid over 10 years only, but MPower doesn't charge any fees if you pay your loan off early. Also note that MBA loans from this lender don't require a credit score or a credit history, nor do they require collateral or a cosigner.
The Bottom Line
Consider MPower Financing if you're an international student or DACA student who wants to earn a MBA in the United States. This lender can help you get financing without a cosigner or any U.S. credit history, although interest rates are higher as a result.
Try MPower FinancingRead more in the full MPower Financing review.
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How to Choose the Best MBA Student Loan?
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 - Feature Comparison
| Company Name | Estimated APR | Minimum credit score | Loan Amounts | Loan Terms |
| College Ave Student Loans | Variable APR of 1.99% to 10.97% Fixed APR of 3.99% to 11.99% | mid-700's | Up to 100% of the cost of attendance | 5, 8, 10, or 15 years |
| SoFi | Variable APR of 2.64% to 11.98% Fixed APR of 4.75% to 12.65% | Not disclosed | Up to 100% of the cost of attendance | 5, 7, 10, or 15 years |
| Sallie Mae | Variable APR of 2.50% to 12.22% Fixed APR of 4.25% to 12.92% | Not disclosed | Up to 100% of the cost of attendance | 5 to 20 years |
| Earnest | Variable APRs starting at .94% Fixed APR of 3.24% | 650 | Up to 100% of the cost of attendance | Varies |
| Ascent | Variable APR of 1.79% to 11.12% Fixed APR of 5.31% to 14.96% | None | Up to 100% of the cost of attendance | 7, 10, 12, or 15 years |
| Discover | Variable APR of 2.74% to 9.34% Fixed APR of 4.49% to 10.99% | Not disclosed | Up to 100% of the cost of attendance | 20 years |
| MPower Financing | Fixed APR of 11.99% without discounts Fixed APR of 10.49% with discounts | None | $2,000 to $50,000 per loan ($100,000 lifetime limit) | 10 years |
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.
FAQs
What’s the best undergraduate degree for an MBA?
While you can pursue a Master of Business Administration
(MBA) degree after completing nearly any bachelor's degree program,
undergraduate business degrees are naturally the best fit. Also note that you
can choose a specialization for your undergraduate business degree, such as
economics, finance, human resources, or marketing.
What type of MBA student loan should I take out?
Federal student loans for MBA programs are best for
borrowers who want access to federal protections like deferment and
forbearance. That said, many graduate school students wind up taking out
private MBA student loans in order to fill in funding gaps after federal loan
limits are exhausted.
How do you finance an MBA degree without loans?
Many employers offer tuition assistance programs that can
help you finance a MBA without having to borrow money. According to the
Internal Revenue Service (IRS), workers who receive this assistance can even
exclude up to $5,250 in tuition benefits on their taxes each year.
Can you get an MBA while working full-time?
You may be able to earn an MBA while working full-time if
you take courses during evenings or weekends. However, it's more common for
students to pursue an MBA on a part-time basis if they're also working
full-time.
How Much Do MBA Graduates Earn?
According to the Bureau of Labor Statistics, graduates with
a master's degree earned average weekly wages of $1,574 in 2021, compared to
$1,334 for those with a bachelor's degree. Meanwhile, newly hired graduates who
hold a Master of Business Administration (MBA) in particular earned a median
annual salary of $115,000 in 2021.
Is an MBA Worth the Debt?
Earning a MBA can be worth the debt you take on if your
advanced degree leads to a higher salary. For example, BLS data shows that
graduate degree holders earned $240 more per week than those with a bachelor's
degree in 2021. This amount translates into $12,480 in additional earnings per
year or $249,600 in additional income over 20 years.
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Holly Johnson
Ten years of experience in banking, corporate finance, and corporate accounting primarily at large, public companies.
More about me