How To Pay for an MBA Degree

MBA students have long been able to use federal grad PLUS loans to cover up to their school’s full cost of attendance. However, with that option unavailable to new borrowers starting in July 2026, alternatives such as grants, employer aid, assistantships, and private loans are becoming more important for filling funding gaps.

Here’s how to pay for an MBA in the 2026-27 school year.

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1. Graduate grants 

MBA grants can significantly lower the cost of business school. In the 2024-25 school year, graduate students received an average of $10,960 in grant aid, according to the College Board. 

Unlike loans, grants are a form of gift aid that doesn’t need to be repaid. 

Types of graduate school grants include: 

• Institutional grants: Many MBA programs offer need-based or merit-based grants to incoming students. For example, Harvard Business School awards MBA scholarships ranging from $2,000 to $87,000 per year, with about half of students receiving need-based aid. At New York University Stern School of Business, 20% to 25% of full-time MBA students receive a merit-based scholarship, with many awards covering half or full tuition. 
• Private and employer grants: Many nonprofits, professional organizations, and employers also offer MBA scholarships and grants. 
• State grants: Some states offer financial aid programs for graduate students who meet residency or income requirements. However, these programs are less common, since most state grant funding is reserved for undergraduate students. 

2. Employer sponsorships

Your employer may help cover the cost of an MBA through a tuition assistance or tuition reimbursement program. 

“The first place I’d look is employer sponsorship or tuition reimbursement,” says Becca Craig, a certified student loan professional (CSLP) and certified financial planner (CFP) at Focus Partners Wealth. “A surprising number of companies will help pay for an MBA, especially if the employee agrees to stay for a certain number of years at the company.” 

Employer-sponsored MBA programs often come with requirements, such as maintaining a minimum GPA or committing to stay with the company for a set period after graduation. Some employers may also only reimburse tuition after you successfully complete the course.

“Make sure to check with your employer’s program administration to know all of the details and expectations ahead of time to receive this benefit,” advises Kelly Reddy-Heffner, a CFP at Steel City Wealth Collaborative. 

3. MBA fellowships and assistantships 

MBA assistantships and fellowships can help reduce business school costs while offering valuable professional experience. 

Fellowships typically provide funding to support a student’s academic work, leadership development, or career goals. Examples include Forté MBA Fellowships, ROMBA LGBTQ+ Fellowship, and the Morgan Stanley MBA Fellowship.

Assistantships, on the other hand, usually require you to work a set number of hours for the university in exchange for financial aid. Depending on the program, this may include a tuition waiver, monthly stipend, or both.

Availability and benefits vary by school, so contact your MBA program or financial aid office to ask what assistantship and fellowship opportunities are available. 

4. Federal graduate loans

MBA students can choose between federal and private student loans, but recent changes to federal lending limits may leave some borrowers with larger funding gaps. 

The Department of Education is sunsetting federal grad PLUS loans beginning July 1, 2026. Previously, these loans allowed graduate students to borrow up to their school’s full cost of attendance. Without grad PLUS loans, new MBA students will only be eligible for Direct Unsubsidized Loans up to $20,500 per year, with a lifetime borrowing limit of $100,000.

“If you have already borrowed a graduate PLUS loan for your education program before the change deadline, you can continue to borrow through this program until your program is complete or for up to three more years,” explains Heffner.

Even with these new borrowing caps, federal student loans are usually the best place to start before considering private student loans.

“Students should generally look at federal Direct Unsubsidized Loans before private loans because federal loans still tend to offer more borrower protections and repayment flexibility,” advises Craig.

To qualify for federal student loans, you’ll need to submit the Free Application for Federal Student Aid (FAFSA). 

See Also: MBA Student Loans: How To Finance Your Business Degree in 2026

5. Federal work-study

MBA students with financial need may qualify for the federal work-study program, which provides part-time job opportunities on or off-campus. Earnings from a work-study job can help cover living expenses and reduce how much you need to borrow for business school.

Unlike grants or student loans, work-study funds are paid directly to you through an hourly wage or salary. However, qualifying for work-study does not automatically guarantee you a job. You’ll still need to apply for available positions through your school.

To qualify for federal work-study, you must complete the FAFSA. Since funding for the program is limited, it’s best to apply as early as possible.

6. Private graduate student loans

If you reach the federal student loan limit and still need additional funding for your MBA, private graduate student loans may help cover the gap. 

“Private loans can help fill the tuition gap, but borrowers need to pay close attention to interest rates, variable versus fixed terms, repayment flexibility, and whether there are credit or cosigner requirements,” advises Craig.

Private MBA loans vary by lender, so it’s important to compare interest rates, repayment terms, fees, and borrower benefits before applying. Unlike federal student loans, private lenders usually require a credit check. If you have limited credit history or lower credit scores, you may need a cosigner to qualify or get a lower interest rate.

How much does an MBA cost?

The cost of an MBA can vary widely depending on the school, program format, and where you live. In general, online MBA programs tend to cost less than full-time, in-person programs at top business schools.

Your residency status can also affect tuition costs at public universities. For example, the Kelley School of Business at Indiana University charges Indiana residents $29,573 in tuition for the 2025-26 academic year, while non-residents and international students pay $55,695.

Private business schools often cost much more. At The Wharton School, tuition for the 2026-27 academic year is $87,970. However, tuition is only part of the total cost of attendance. Wharton estimates the full annual cost of its MBA program at $135,441, including expenses like housing, food, books, and transportation.