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3 of the Best MBA Student Loans for Business School

If you’re looking to switch careers or boost your earning potential, pursuing a Master of Business Administration (MBA) degree is a smart idea — it could even double your salary.

Kat Tretina Kat Tretina Updated September 24, 2020

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

MBA programs can be costly — the average MBA debt is over $66,000. To pay for your program, you’ll likely need to use at least some MBA loans. If you need to borrow money to finance business school, it’s important to understand your different student loan options.

3 MBA student loan options

If you’re going to business school, you have three MBA student loan options:

  1. Direct Unsubsidized Loans: As a graduate or professional degree student, you can borrow up to $20,500 per year in unsubsidized loans.
  2. Grad PLUS Loans: With Grad PLUS Loans, you can borrow up to the total cost of attendance for your program minus any other financial aid you received.
  3. Private student loans: You can work with a private lender to take out loans for the total cost of your program.

1. Direct Unsubsidized Loans

Direct Unsubsidized Loans are offered by the federal government, and they’re available to you regardless of your financial need. Unlike some other student loans, you don’t need to go through a credit check when you apply for an unsubsidized loan, and having bad credit won’t prohibit you from getting a loan.

Loans disbursed on or after July 1, 2019, and before July 1, 2020, have an interest rate of 6.08%. Plus, unsubsidized loans also have a disbursement fee. Loans disbursed on or after October 1, 2019, and before October 1, 2020, have a disbursement fee of 1.059%.

As a federal loan, unsubsidized loans are eligible for perks like income-driven repayment plans, access to loan deferment and forbearance, and the ability to qualify for Public Service Loan Forgiveness. To qualify for an unsubsidized loan, you need to complete the Free Application for Federal Student Aid (FAFSA).

2. Grad PLUS Loans

Like Direct Unsubsidized Loans, Grad PLUS Loans are a form of federal student loan; to be eligible for one, you must complete and submit the FAFSA. However, PLUS Loans require a credit check, and you may not qualify for a loan if you have an adverse credit history.

PLUS Loans allow you to borrow up to the total cost of attendance at your selected program, but they have the highest interest rate of any federal loan. Loans disbursed on or after July 1, 2019, and before July 1, 2020, have an interest rate of 7.08%. Plus, they also have a high disbursement fee. Loans disbursed on or after October 1, 2019, and before October 1, 2020, have a 4.236% disbursement fee.

3. Private student loans

When it comes to MBA loans, private student loans can make a lot of sense. If you have good credit, you could qualify for a lower interest rate than you’d get with federal student loans, helping you save money. Private student loans don’t have benefits like income-driven repayment plans or eligibility for Public Service Loan Forgiveness, but the cost-savings can be well worth the tradeoff.

Example: Let’s say you needed to take out $50,000 to pay for your MBA. If you took out Grad PLUS Loans to cover that cost, you’d have a 7.08% interest rate. Over the course of a 10-year repayment term, you’d pay a total of $69,912 — interest charges would cost you nearly $20,000.

But let’s say you opted for a private student loan instead and qualified for an interest rate of 5.30%. Over a 10-year repayment term, you’d pay a total of just $64,522. Opting for a private loan instead of a federal loan would allow you to save over $5,000.

Private student loans have other benefits, including:

  • Variable or fixed interest rate loans: With a private student loan, you can also choose between a variable rate loan and a fixed-rate loan. While fixed-rate loans have the same interest rate for the length of the loan, variable rate loans are different. They start off with lower interest rates than fixed-rate loans, but the rate can fluctuate over time.
  • No added fees: Private student loans usually don’t have extra fees. Unlike federal loans, which have disbursement fees, you won’t pay a disbursement fee or origination fee with a private loan.

The private student loan companies in the table below are all Credible’s partner lenders. We have not included other lenders.

LenderFixed rates from (APR)
Variable rates from (APR)
citizens

View details
3.99%+11.22%+1

  • Fixed rates from (APR): 3.99%+1
  • Variable rates from (APR): 1.22%+1
  • Loan terms (years): 5, 10, 15
  • Loan amount: $1,000 - $350,000 (depending on degree)
  • Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay, loyalty
  • Eligibility: Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner)
  • Customer service: Email, phone, chat
  • Soft credit check: Yes
  • Min. credit score: 720
  • Cosigner release: After 36 months
  • Loan servicer: Firstmark Services
Citizens Bank student loans review
collegeave

View details
3.49%+2,3
1.04%+2,3

  • Fixed rates from (APR): 3.49%+2,3
  • Variable rates from (APR): 1.04%+2,3
  • Loan terms (years): 5, 8, 10, 15
  • Loan amount: $1,000 up to 100% of the school-certified cost of attendance
  • Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Min. credit score: Does not disclose
  • Cosigner release: After 24 months
  • Loan servicer: University Accounting Service LLC

College Ave student loans review



View details
4.25% - 12.35%91.25% - 11.10%9

  • Fixed rates from (APR): 4.25% - 12.35%9
  • Variable rates from (APR): 1.25% - 11.10%9
  • Loan terms (years): 5, 15
  • Loan amount: Up to 100% of the school-certified cost of attendance
  • Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner.
  • Customer service: Phone
  • Soft credit check: Yes
  • Min. credit score: Does not disclose
  • Cosigner release: After 12 months
  • Loan servicer: Sallie Mae

Sallie Mae student loans review

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Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 1Citizens Bank Disclosures | 2,3College Ave Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures

Other private student loan lenders to consider

Here are more private student loan companies we evaluated. Keep in mind that these lenders are not offered through Credible, so you won’t be able to easily compare your rates with them on the Credible platform like you can our partner lenders.

Lender
Loan terms (years)
Cosigner release
commonbond

Show details
5, 10, 15
After 24 months
  • Rates: Fixed, variable
  • Loan terms (years): 5, 10, 15
  • Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, academic deferment, forbearance
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Available in all 50 states
  • Customer service: Email, phone, chat
  • Soft credit check: Does not disclose
  • Min. credit score: Does not disclose
  • Cosigner release: After 24 months
discover

Show details
15, 20
(depending on degree type)
No
  • Rates: Fixed, variable
  • Loan terms (years): 15, 20 (depending on degree type)
  • Loan amount: Up to 100% of the school-certified cost of attendance
  • Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: None
  • Discounts: Autopay, good grade discount, cash reward for on-time graduation
  • Eligibility: Must be a U.S. citizen, permanent resident, or international student with a qualifying cosigner, as well as be making satisfactory academic progress.
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Min. credit score: Does not disclose
  • Cosigner release: No
earnest

Show details
5, 7, 10, 12, 15, 20
No
  • Rates: Fixed, variable
  • Loan terms (years): 5, 7, 10, 12, 15, 20
  • Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, military deferment, forbearance, loans discharged upon death or disability
  • Fees: None
  • Discounts: Autopay
  • Eligibility: Available in all states except AK, CT, DE, HI, IL, KY, NH, NV, OH, TX, and VA
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Min. credit score: 650
  • Cosigner release: None
wells fargo

Show details
15, 20
After 24 months
  • Rates: Fixed, variable
  • Loan terms (years): 15, 20
  • Repayment options: Full deferral, full monthly payment, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: None
  • Discounts: Autopay, loyalty
  • Eligibility: Available in all 50 states
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Min. credit score: Does not disclose
  • Cosigner release: After 24 months
The lenders in this table aren't our partners. But you can use Credible to compare rates in 2 minutes from other lenders who offer private student loans.

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Deciding which MBA student loan is right for you

When it comes to MBA loans, it’s important to research your different options so you can make an informed choice. If you’re trying to decide between federal and private MBA student loan options, think about the difference in interest rates between them, what benefits they offer, and what repayment options are available.

By doing some homework before submitting your application for a loan, you can save money and get the credential you need to advance your career.

See: The Best Private Student Loans

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Trustpilot

Methodology: Credible evaluated loan and lender data points in 10 categories to identify the “best companies” for private student loans. We looked at interest rates, repayment terms, repayment options, fees, discounts, and customer service availability. We also considered each company’s 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.

About the author
Kat Tretina
Kat Tretina

Kat Tretina is a contributor to Credible who covers everything from student loans to personal loans to mortgages. Her work has appeared in publications like the Huffington Post, Money Magazine, MarketWatch, Business Insider, and more.

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