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MBA Student Loans: 7 Lenders to Consider for Business School

Written by

Edited by

Andrew Pentis

Updated on: September 8th, 2020

Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

Master of Business Administration students can expect to shell out $70,000 to $200,000 for their multiyear degree, according to College Ave, a major lender of MBA student loans.

When scholarships and other financial aid aren’t enough, MBA loans can make attendance possible.

These products aren’t created equal, however, so it’s wise to learn about MBA loan terms, review some excellent MBA loan choices available and reevaluate your federal loan options as well.

What to look for in MBA student loans

MBA student loans are specialized private student loans offered exclusively to students who are accepted or enrolled in MBA programs.

And even if you attend one of the best business schools for avoiding debt, a responsibly-borrowed MBA loan can come in handy.

MBA loan interest rates

Private MBA student loans often beat interest rates and fees levied on federal loans available to MBA students.

However, getting the best MBA student loan interest rate likely will come down to your credit score. You’ll usually need at least a decent credit score to qualify for private student loans, and a score around 720 or higher can help you get the lowest rates.

If your score is lower, applying with a cosigner who has excellent credit can help you qualify for a better rate.

Other private MBA loan terms

You’ll need to make sure all aspects of an MBA loan fit your needs — not just the interest rate.

Make sure the lender:

Works with MBA students and will extend funding for your specific business school
Offers private MBA loans with the amount you need to borrow to cover your program costs
Has student loan terms that match your repayment goal, whether it’s repaying MBA loans in five years or 15
Provides in-school deferment and other manageable repayment options
Helps borrowers in repayment by offering protections such as forbearance for economic hardship

And if you haven’t already, ensure borrowing for your MBA is worth the cost of eventual repayment.

7 excellent MBA loans available today

We’ve rounded up our favorite lenders offering the best MBA loans. Each lender has its own loan terms and lending criteria, so see which lenders might be a good fit for you.

Additionally, advertised rates might not match what you’re offered. Complete a soft credit check when possible and compare your custom rate estimates.

Lendder	Unique feature
1. Citizens Bank	Multiyear approval eases future borrowing
2. CommonBond	Economic hardship forbearance for up to two years
3. Earnest	Lowest variable and fixed interest rates
4. Sallie Mae	12 months of interest-only payments following graduation
5. SoFi	Unemployment protection postpones your payment if you lose your job involuntarily
6. Ascent	One-off cash back reward upon graduating
7. College Ave Student Loans	Accessible for part-time students (like Sallie Mae)

1. Citizens Bank MBA Student Loans

1	2
Interest rates	Variable rates that start as low as 1.42% APR (current as of Aug. 17, 2020) Fixed rates that start at 4.39% APR (current as of Aug. 17, 2020) Interest rate discount of up to 0.50% (reflected in quoted interest rates)
What to like	Terms of five, 10 and 15 years on MBA loans from Citizens One, a brand name of Citizens Bank Loan limit up to the “total cost of education” or $225,000 limit, whichever is lower Full in-school deferment of MBA loans Option to make interest-only payments or start immediate repayment No MBA loan origination fee or prepayment penalty Multiyear approval for eligible students
What to keep in mind	International students need a permanent resident cosigner

2. CommonBond MBA Student Loans

1	2
Interest rates	Variable rates that start as low as 5.82% APR (current as of Aug. 17, 2020) Fixed rates that start at 6.04% APR (current as of Aug. 17, 2020) Interest rate discount of 0.25% for enrolling in autopay
What to like	CommonBond MBA loan terms of 10 and 15 years MBA loan limit up to the cost of attendance (after other student aid is applied) or $110,000 per year, whichever is lower Fully deferred, interest-only, or immediate repayment options Up to 24 months of access to forbearance for economic hardship No prepayment penalty Option to apply for an MBA loan alone or with a cosigner
What to keep in mind	Origination fee of 2%, which is reflected in stated APRs from CommonBond 29 eligible MBA programs: If you don’t attend one, you could apply for CommonBond’s general graduate student loan International student loans are inaccessible at CommonBond, but the lender partners with Prodigy Finance to serve foreign students

3. Earnest MBA loan

1	2
Interest rates	Variable rates that start as low as 1.24% APR (current as of Aug. 17, 2020) Fixed rates that start at 3.55% APR (current as of Aug. 17, 2020) Interest rate discount of up to 0.25% (reflected in quoted interest rates)
What to like	Earnest MBA loan terms of five, seven, 10, 12 and 15 years MBA loan limit up to the cost of attendance (after other student aid is applied) Fully deferred, interest-only, fixed or immediate repayment options Forbearance for economic hardship No fees whatsoever Option to skip a payment annually 9-month grace period beats the industry standard six months Ability to apply for an MBA loan alone or with a cosigner
What to keep in mind	International students need a permanent resident cosigner

4. Sallie Mae MBA loans

1	2
Interest rates	Variable rates that start as low as 2.25% APR (current as of Aug. 17, 2020) Fixed rates that start at 4.75% APR (current as of Aug. 17, 2020) 0.25% rate discount for enrolling in autopay
What to like	Sallie Mae MBA loan amounts are limited to 100% of your business school's cost of attendance Students enrolled less than half time are eligible to borrow No origination fee or prepayment penalty on MBA loans Fully deferred, interest-only, or $25-per-month repayment options Optional interest-only graduated repayment for 12 months immediately after graduation Option to add a cosigner to secure loan approval or a lower interest rate with Sallie Mae
What to keep in mind	Limited repayment term choice, as Sallie Mae MBA loans are repaid on a 15-year schedule

5. SoFi

1	2
Interest rates	Variable rates that start as low as 1.78% APR (current as of Aug. 17, 2020) Fixed rates that start at 4.11% APR (current as of Aug. 17, 2020) Interest rate discount of up to 0.25% (reflected in quoted interest rates)
What to like	SoFi MBA loan terms of five, 10 and 15 years MBA loan limit up to the cost of attendance (after other student aid is applied) Fully deferred, interest-only, fixed or immediate repayment options Unemployment protection pauses your repayment if you lose your job involuntarily No fees whatsoever Option to apply for an MBA loan alone or with a cosigner Career services among member-exclusive benefits
What to keep in mind	International students can apply with a permanent resident cosigner

6. Ascent

1	2
Interest rates	Variable rates that start as low as 3.93% APR (current as of Aug. 17, 2020) Fixed rates that start at 4.92% APR (current as of Aug. 17, 2020) Interest rate discount of up to 0.25% (reflected in quoted interest rates)
What to like	MBA loan limit up to the cost of attendance (after other student aid is applied) or $200,000 total, whichever is lower Fully deferred, interest-only, fixed or immediate repayment options 9-month grace period beats the industry standard six months Forbearance for economic hardship, among repayment postponement options No prepayment penalty Option to apply for an MBA loan alone or with a cosigner One-off 1% cash back reward for graduating
What to keep in mind	International students can apply with a permanent resident cosigner Limited repayment term choice: Ascent MBA loan terms are 10 and 15 years (for variable rates) and 10 years (for fixed rates)

7. College Ave Student Loans

1	2
Interest rates	Variable rates that start as low as 1.39% APR (current as of Aug. 17, 2020) Fixed rates that start at 4.14% APR (current as of Aug. 17, 2020) Interest rate discount of up to 0.25% (reflected in quoted interest rates)
What to like	College Ave MBA loan terms of five, eight, 10 and 15 years Students enrolled less than half time are eligible to borrow MBA loan limit up to the cost of attendance Fully deferred, interest-only, fixed or immediate repayment options Forbearance for economic hardship No prepayment penalty or origination fees Option to apply for an MBA loan alone or with a cosigner
What to keep in mind	International students must have a valid U.S. Social Security number and a local cosigner to apply for loans

Private MBA student loans vs. federal loans

As you weigh your borrowing options, don’t forget to compare private MBA loans to federal student loans. Private loans can be a smart option for MBA students who want to avoid origination fees and don’t see themselves needing government-exclusive safeguards in repayment.

Since an MBA often leads to higher pay and solid employment prospects, many lenders offer some of their best terms on these types of student loans. Private MBA student loans often have …

Low or no fees
Low interest rates for creditworthy borrowers
Flexible repayment terms
Deferment and forbearance options

The alternatives to private MBA loans are two federal options:

Graduate direct loans: 1.062% loan fee and 4.30% interest rate for the 2020-2021 school year
Grad PLUS loans: 4.236% loan fee and 5.30% interest rate for the 2020-2021 school year

Many MBA students are better off relying on federal student loans. If your credit is less than perfect, for example, you might not qualify for the lower rates that can make private MBA loans a smart choice.

Federal student loans also come with important borrower protections, including:

Access to income-driven repayment plans
Options to pause repayment with deferment or forbearance
Student loan forgiveness programs
Student loan default rehabilitation

To determine the best borrowing option for your own situation, you’ll want to get a few rate quotes on MBA loans and compare them with federal student loan rates. Make sure you include the origination fee in your calculations, as it can be a significant cost.

As a business school student, you’re probably skilled at making cost-benefit comparisons. Our student loan term comparison calculator, however, can do the heavy lifting. Enter your details below to evaluate loans of different terms and interest rates, private or federal.

*Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

†The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.

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