MBA Student Loans: 7 Lenders to Consider for Business School

Written by Elyssa Kirkham

September 8, 2020September 3, 2021Paying for CollegeCareer & Jobs, Featured, Student Loans1725Elyssa KirkhamAmanda GarciaSEO

Updated on September 8, 2020

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

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²Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

³Rate range above includes optional 0.25% Auto Pay discount.

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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.

Lender	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

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

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

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

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

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

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

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.

Student Loan Comparison Calculator

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Your monthly payment on a $35,000 loan ranges from $0/mo to $0/mo depending on the loan term you choose.

Student loan refinancing APRs as low as % . Check your rate in 2 minutes.

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*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.

Andrew Pentis contributed to this report.

Need a student loan?

Check out our top picks below or learn more about other ways to pay for college.

Lender	Variable APR	Degrees That Qualify	More Info
	0.99% – 11.98%¹	Undergraduate Graduate	Visit College Ave
	1.13% – 11.23%²	Undergraduate Graduate	Visit SallieMae
	0.99% – 11.44%³	Undergraduate Graduate	Visit Earnest
	1.50% – 11.33%⁴	Undergraduate Graduate	Visit Ascent
	1.12% – 11.23%⁵	Undergraduate Graduate	Visit SoFi
	1.15% – 11.01%⁶	Undergraduate Graduate	VISIT CITIZENS
Learn more about private student loan lenders. Learn more about private student loan lenders.

¹

²Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

³Rate range above includes optional 0.25% Auto Pay discount.

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Citizens Bank Disclosures

Undergraduate Rate Disclosure: Variable interest rates range from 1.15% – 11.01% (1.15% – 10.24 APR)Fixed interest rates range from 4.18% – 11.70% (4.18% – 10.83% APR).

Graduate Rate Disclosure: Variable interest rates range from 1.89% – 10.66% (1.89% – 10.41% APR). Fixed interest rates range from 4.64% – 11.23%% (4.64% – 10.95% APR).

Business/Law Rate Disclosure: Variable interest rates range from 1.89% – 9.22% (1.89% – 8.50% APR). Fixed interest rates range from 4.38% – 10.44% (4.38% – 9.72% APR).

Medical/Dental Rate Disclosure: Variable interest rates range from 1.89% – 8.02% (1.89% – 7.72% APR). Fixed interest rates range from 4.28% – 9.24% (4.28% – 8.94% APR).

Parent Loan Rate Disclosure: Variable interest rates range from 1.97% – 7.06% (1.97% – 7.06% APR). Fixed interest rates range from 4.94% – 8.58% (4.94% – 8.58% APR).

Bar Study Rate Disclosure: Variable interest rates range from 4.44% – 9.58% (4.44% – 9.52% APR). Fixed interest rates range from 7.39% – 12.94% (7.40% – 12.83% APR).

Medical Residency Rate Disclosure: Variable interest rates range from 3.53% – 7.03% (3.53% – 6.76% APR). Fixed interest rates range from 6.99% – 10.49% (6.98% – 10.09% APR).

Variable Rate Disclosure: Variable Rates are based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of June 1, 2021, the one-month LIBOR rate is 0.09%. Variable interest rates will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable rate is the greater of 21.00% or Prime Rate plus 9.00%.

Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.

Lowest Rate Disclosure: Lowest rates require a 5-year repayment term, immediate repayment, a graduate degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.

Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer. Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.

Eligibility Criteria: Applicants must be a U.S. citizen, permanent resident, or eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For applicants who have not attained the age of majority in their state of residence, a co-signer is required. Citizens Bank reserves the right to modify eligibility criteria at any time. Citizens Bank private student loans are subject to credit qualification, completion of a loan application/Promissory Note, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens Bank participating school.

Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.

Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.

MBA Student Loans: 7 Lenders to Consider for Business School

Private Student Loan rates starting at 0.99% APR