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Graduating with a Master of Business Administration (MBA degree) is a big accomplishment — however, considering that the average grad school debt is $66,300, you might also be leaving school with a hefty amount of student loan debt.
If this is the case, MBA loan refinance might be a good idea to help you manage your debt — and possibly pay it off faster.
Here’s what to know about MBA loan refinancing:
- 10 lenders for refinancing an MBA student loan
- How to refinance an MBA student loan
- How much can I save if I refinance my MBA loans?
- Should you refinance your MBA student loan?
- What credit score do you need to refinance your student loan?
10 lenders for refinancing an MBA student loan
Refinancing MBA student loans might help you get a lower interest rate, saving you money over time. Or you could choose to extend your repayment term to reduce your monthly payment, easing the strain on your budget.
If you decide to refinance, be sure to consider as many lenders as you can to find the right loan for you. Here are Credible’s partner lenders that offer MBA loan refinancing:
|Lender||Fixed rates from (APR)||Variable rates from (APR)||Loan terms (years)|
|4.54%+||N/A||10, 15, 20|
|2.95%+||1.90%+||5, 7, 10, 15, 20|
|2.97%+¹||1.99%+¹||5, 7, 10, 15, 20|
|3.34%+2||3.24%+2||5, 7, 10, 12, 15, 20|
|2.58%+3||2.39%+3||5, 7, 10, 12, 15, 20|
|3.47%+4||2.47%+4||5, 10, 15, 20|
|3.05%+||3.05%+||7, 10, 15|
|2.99%+||2.17%+||5, 8, 12, 15|
|3.19%+||N/A||5, 10, 15|
|2.99%+5||2.85%+5||5, 7, 10, 15, 20|
|Compare personalized rates from multiple lenders without affecting your credit score. 100% free!
Advantage: Best for parents who want to transfer Parent PLUS Loans to their child
Advantage offers refinancing for loan amounts ranging from $7,500 up to $200,000. It’s also one of the few lenders that allows parents to transfer a Parent PLUS Loan to their child through refinancing.
This could make it a good choice if you’d like to refinance a Parent PLUS Loan into your name.
Brazos: Best for Texas residents
If you live in Texas, you might be able to refinance up to $250,000 in student loans with Brazos. Keep in mind that you’ll need to make at least $60,000 per year and have good to excellent credit to potentially qualify for refinancing.
Citizens Bank: Best for returning customers
With Citizens Bank, you might be able to refinance up to $500,000 in MBA student loans. Plus, if you already have other accounts with Citizens Bank, you could qualify for a 0.25% loyalty discount. Signing up for autopay will get you another 0.25% off your rate.
College Ave: Best for multiple repayment options
Refinancing lenders typically offer three to five repayment term options for borrowers. However, if you refinance with College Ave, you can choose from 16 different repayment terms ranging from five to 20 years. You can refinance up to $300,000 in MBA loans with College Ave.
ELFI: Best for large loan balances
Education Loan Finance (ELFI) offers student loan refinancing starting at $15,000 with no maximum. This could make it a good option if you graduated with a high amount of debt.
ELFI also provides up to 12 months of forbearance for borrowers experiencing financial hardship, which could be helpful if you lose your job or face another emergency.
INvestEd: Best for borrowers who didn’t graduate
Unlike many other lenders, INvestEd doesn’t require borrowers to have finished their degree to qualify for refinancing. As long as you have good to excellent credit and earn at least $36,000 per year, you might be able to refinance up to $250,000 with INvestEd.
MEFA: Best for borrowers who attended a public or nonprofit university
With MEFA, you can refinance anywhere from $10,000 up to the total amount of your qualified education debt, meaning you could refinance large MBA student loans.
Keep in mind that to refinance with MEFA, your student loans must have been used at a public or nonprofit university — for-profit schools aren’t eligible.
PenFed: Best if you want to consolidate loans with your spouse
PenFed is the only refinancing lender that allows spouses to refinance student loans together — which could make them a good option if you’d like to combine debt with your partner. With PenFed, you can refinance $7,500 up to $300,000, with terms ranging from five to 15 years.
RISLA: Best if you need income-based repayment
Many private student loans only offer temporary forbearance options if you run into financial hardship.
RISLA, however, is an exception — if you experience financial difficulties, you can sign up for an Income-Based Repayment (IBR) plan that caps your payment at 15% of your discretionary income and extends your repayment term up to 25 years.
If you make on-time payments throughout your repayment, RISLA will forgive any remaining balance.
SoFi: Best for professional degree holders
With SoFi, you can refinance $5,000 up to the full balance of your qualified education loans. Most SoFi borrowers have good to excellent credit and hold an advanced degree (such as in law or medicine).
SoFi members also have access to perks like unemployment protection and career coaching.
Check Out: Private Student Loan Repayment Options
How to refinance an MBA student loan
If you’re ready to refinance your student loans, follow these steps:
- Shop around and compare lenders. Be sure to compare as many lenders as you can to find the right loan for you. Consider not only interest rates, but also repayment terms, fees, and eligibility requirements.
- Pick the loan option you like most. After comparing lenders, choose the loan option that best suits your needs.
- Complete an application. You’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs.
- Manage your payments. If you’re approved for refinancing, continue making payments on your old loans until the refinance is processed. Once your new lender gives you the green light, you can begin making payments on your new loan.
How much can I save if I refinance my MBA loans?
Let’s say you’ve recently graduated with your MBA and owe $66,300 with a 6.22% interest rate — the average student loan interest rate for grad students.
If you were on the standard 10-year repayment plan, your monthly payment would be $740. Over the life of the loan, you’d pay a total of $88,806. However, if you refinanced to a 5% rate, you’d lower your monthly payments by $43 and would pay $4,802 less in total costs.
|Original loan||Refinanced loan|
|Total interest paid||$22,806||$18,004|
|Total repayment cost||$88,806||$84,004|
Refinancing your MBA student loans might get you a lower interest rate, helping you save money over the life of your loan.
Plus, if you have multiple student loans as many graduates do, refinancing will consolidate your student loans so you only have to worry about making one payment after you graduate.
You can use our calculator below to see how much you could save by refinancing your student loans.
Step 1. Enter your loan balance
Step 2. Enter current loan information
Step 3. Enter your new loan information to start calculating your savings
If you refinance your student loan at % interest rate, you can save will pay an additional $ monthly and pay off your loan by . The total cost of the new loan will be $.
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Checking rates won’t affect your credit score.
Learn More: How to Refinance Student Loans
Should you refinance your MBA student loan?
While refinancing might be a good option for some people, it’s not always the right choice for everyone.
If you’re trying to decide when to refinance student loans and if you should, here are a few situations where it might be a good idea:
- You can get a lower interest rate. If you can reduce your interest rate, you’ll pay less in interest charges over the life of your loan. This could help you save money as well as potentially pay off your loans early.
- You want to pay off your loans faster. The average time to repay student loans for a graduate degree is 23 years — but if you refinance, you could choose a shorter repayment term and potentially pay off your loans more quickly. Just keep in mind that a shorter repayment term typically means higher monthly payments. It’s usually a good idea to choose the shortest repayment term that you can afford.
- You qualify for discounts: Depending on the lender, you might be able to get rate discounts on a refinanced loan, such as if you sign up for autopay or already have other accounts with them. For example, SoFi offers a 0.125% member rate discount as well as a 0.25% autopay discount.
- You’re unhappy with your servicer or lender. If you’ve had a poor experience with your servicer or lender, refinancing will let you take your business elsewhere.
Keep in mind that while you can refinance both federal and private student loans, refinancing federal loans will cost you your federal benefits and protections.
These include access income-driven repayment plans as well as student loan forgiveness programs like Public Service Loan Forgiveness. And unfortunately, private student loan forgiveness doesn’t exist.
However, there are times where you still might want to refinance federal student loans, such as if you can get a much lower interest rate on a high student loan balance.
While you’ll still need to weigh the risks of losing federal repayment options and other benefits, refinancing in this case could save you a lot of money over time.
What credit score do you need to refinance your student loan?
You’ll typically need good to excellent credit to qualify for refinancing. A good credit score is generally considered 670 and higher. Having good credit will also help you qualify for lower interest rates, which could help you pay back your student loans faster.
You might still be able to refinance student loans with bad credit through certain lenders — though keep in mind that you’ll likely end up with a higher interest rate.
You’ll also generally need verifiable income and a low debt-to-income (DTI) ratio to qualify for refinancing. Individual lenders might also have their own eligibility requirements you’ll have to meet as well.
If you decide to refinance your MBA loans, be sure to consider as many lenders as you can to find the right loan for your needs. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
Pay Off Your Student Loans:
Methodology: Credible evaluated loan and lender data points in 12 categories to identify some of the “best companies” for refinancing student loans for MBA grads. We looked at interest rates, repayment terms, repayment options, fees, discounts, customer service availability, and maximum loan balances offered by 20 lenders. We also considered each company’s willingness to refinance parent loans, eligibility, cosigner release options, whether the minimum credit score is available publicly, and whether consumers could request rates with a soft credit check.
Credible receives compensation from its lender partners when a user of the Credible platform closes a loan with the lender.
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