How To Pay for an MBA in 2025: Best Strategies To Fund Business School

An MBA (Master of Business Administration) can open the door to higher-paying career opportunities. The median starting salary for MBA graduates is about $120,000 — roughly 75% higher than the average for bachelor’s degree holders, according to the Graduate Management Admission Council (GMAC).

However, earning an MBA comes with a significant price tag. This guide explores some of the most effective ways to pay for an MBA, and how to minimize your costs. 

See Also: Best Student Loans for MBA Programs

Current private student loan rates

How much you’ll pay for an MBA

The average annual tuition and fees for MBA programs is $17,058, according to the latest data from the National Center for Education Statistics. For a traditional two-year program, that totals about $34,000. However, costs can be much higher at top schools. For example, Stanford Graduate School of Business charges $85,755 in tuition and fees for the 2025-26 academic year.

Tuition is only part of the equation. You’ll also need to budget for living expenses, books, and course materials, which can significantly increase your total cost of attendance. According to the National Center for Education Statistics, MBA students spend an average of $1,027 per year on course materials alone.

Seek out MBA scholarships and grants 

Scholarships and grants for graduate students can be one of the most effective ways to lower your MBA costs since they don’t have to be repaid. 

MBA students can qualify for both need-based and merit-based awards. For example, Harvard’s MBA program offers an average of $93,000 in need-based scholarships over two years, and half of its students receive this type of aid. Many schools also provide merit-based aid to attract top applicants.

You can also find MBA scholarships and grants through private organizations. The National Black MBA Association (NBMBAA) and the Forté Foundation are two notable sources, though many others exist based on your background, career goals, or field of study.

Ask your employer to help fund your MBA

Many employers help pay for an MBA through sponsorships or tuition reimbursement programs. Start by contacting your Human Resources department to learn what options are available.

“In small companies, you may have to explain how the coursework will benefit them,” says Reyna Gobel, MBA and author of “Graduation Debt: How To Manage Student Loans and Live Your Life.”

“Could you be a better leader, more astute at marketing, or better at number crunching?” From there, she adds, “Have discussions with professors about what the program could do for your company to brainstorm ideas.”

If your employer doesn’t have a formal program, you can still propose the idea. 

“Schedule a formal meeting and present it as a strategic investment, not just personal growth,” says J. Ryan Smolarz, MD, MBA, and founder of The Medicine and Money Show.

Apply for assistantships or on-campus work

Some MBA programs offer graduate assistantships that reduce your tuition in exchange for part-time work on campus. These roles usually involve research, teaching support, or administrative tasks within your department.

In many cases, assistantships require around 20 hours of work per week and may include both a tuition waiver and a stipend to help cover living expenses. For example, a graduate teaching assistant might lead discussion sections, grade assignments, or help manage a professor’s course materials. A research assistant might work on faculty-led projects, analyzing data or preparing reports. 

Use savings or income to reduce borrowing

Paying for your MBA with savings or income from a job during school could allow you to graduate debt-free. While balancing work and academics can be challenging, avoiding student loans may be worth the extra effort.

However, be cautious about dipping into retirement accounts to fund your degree.

“Generally, using retirement money to pay for college is not a preferred strategy, especially since you lose the principal, potential income taxes on the withdrawal, and most important, the loss of potential growth and time on that money,” says Jack Wang, a wealth adviser at Innovative Advisory Group who focuses on helping families pay for college. 

That said, there are situations where it could make sense. “If getting the MBA definitely leads to higher income, then using retirement money could be worth it if the person will have greater ability to save that money used and more," adds Wang. “For example, if getting the MBA automatically means a promotion and raise for the current employer, then using retirement [funds] can be a good option.”

Before committing, weigh the potential return on investment against the long-term cost of using your savings. 

Start with federal student loans for graduate school

If you’re enrolled at least half-time in an eligible MBA program, you can qualify for federal student loans by completing the FAFSA. These loans typically have lower interest rates and stronger borrower protections than private loans, including access to income-driven repayment plans and loan forgiveness programs.

Federal student loan options for MBA students include:

• Direct Unsubsidized Loans: Most graduate students qualify for these loans, which allow you to borrow up to $20,500 per year. The interest rate for the 2025-26 school year is 7.94%. 
• Grad PLUS loans: These loans are available to graduate students without an adverse credit history. They have a higher interest rate than unsubsidized loans (8.94%), but let you borrow up to your school’s full cost of attendance.

Cover remaining costs with private MBA loans

If federal aid and other strategies don’t cover your full business school costs, private graduate student loans can help fill the gap. These loans often come with higher borrowing costs than federal options, but they can be a viable choice if you’re confident you can manage repayment after graduation.

When comparing private MBA loans, consider:

• Interest rates: Rates vary by lender, so shop around to find the best student loan rates for your credit profile. 
• Repayment terms: Some lenders require payments while you’re still in school, while others let you defer until after graduation. Choose a repayment structure that works for your budget.
• Cosigner options: If your credit isn’t strong, applying with a cosigner could help you secure a lower rate and better loan terms.

Before committing, run the numbers to see what your monthly payments will look like after graduation. For context, the average cumulative amount borrowed per MBA graduate is $23,157, according to the National Center for Education Statistics.