20 Best Business Schools for Avoiding Massive MBA Debt

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You’ve weighed the costs, risks, and rewards of a Master of Business Administration (MBA) and decided it’s a smart next step for you.

Earning an MBA can open doors to opportunities such as higher pay and more senior company positions. Typical earnings for MBA graduates three years after completing the degree were a high $142,000 in 2016, according to MBA school rankings from the Financial Times.

But before you can focus on maximizing your post-MBA earnings, you need to figure out how to pay for your degree.

That’s why Student Loan Hero analyzed 116 business schools to identify the 20 programs where graduates can most easily avoid student debt and afford to repay it. Among these top-ranked MBA programs, tuition costs are low, students avoid huge MBA debt, and graduates command high pay relative to student loans.

Find out if one of the following top 20 business schools is right for you.

MBA program rankings: 20 best business schools with high ROI

The two biggest reasons MBA applicants said they’d decide against attending an MBA program were cost-related, according to the Graduate Management Association Council’s (GMAC) 2017 survey of prospective MBA students:

  • 52 percent worried about not being able to afford the costs.
  • 47 percent were concerned about taking out huge student loans.

Those concerns were well-founded given the average MBA debt for new grads — $53,000, according to Bloomberg. The outlet also estimated the “real cost” of a two-year MBA, including tuition, living expenses, and forgone wages, at a whopping $248,000.

By finding the best MBA loans and attending one of the MBA programs on the following list, it will help you optimize the return on investment of earning a master’s degree by minimizing the debt you owe.

1. Lehigh University in Pennsylvania

  • Annual MBA tuition and fees: $19,350
  • MBA graduates with debt: 0 percent
  • Average MBA debt balance: $0
  • Average starting compensation: $86,667

2. Oklahoma City University

  • Annual MBA tuition and fees: $16,230
  • MBA graduates with debt: 9 percent
  • Average MBA debt balance: $11,331
  • Average starting compensation: $101,090

3. University of Texas — Dallas

  • Annual MBA tuition and fees: $19,048
  • MBA graduates with debt: 25 percent
  • Average MBA debt balance: $7,132
  • Average starting compensation: $83,000

4. Missouri University of Science and Technology

  • Annual MBA tuition and fees: $15,402
  • MBA graduates with debt: 19 percent
  • Average MBA debt balance: $11,386
  • Average starting compensation: $66,667

5. Oklahoma State University (Spears)

  • Annual MBA tuition and fees: $12,121
  • MBA graduates with debt: 22 percent
  • Average MBA debt balance: $18,728
  • Average starting compensation: $70,700

6. University of Missouri (Trulaske)

  • Annual MBA tuition and fees: $14,599
  • MBA graduates with debt: 20 percent
  • Average MBA debt balance: $20,495
  • Average starting compensation: $64,252

7. Florida State University

  • Annual MBA tuition and fees: $18,693
  • MBA graduates with debt: 31 percent
  • Average MBA debt balance: $14,379
  • Average starting compensation: $67,308

8. West Virginia University

  • Annual MBA tuition and fees: $9,450
  • MBA graduates with debt: 33 percent
  • Average MBA debt balance: $18,608
  • Average starting compensation: $58,488

9. Louisiana State University — ​Baton Rouge (Ourso)

  • Annual MBA tuition and fees: $17,800
  • MBA graduates with debt: 27 percent
  • Average MBA debt balance: $17,900
  • Average starting compensation: $62,429

10. West Texas A&M

  • Annual MBA tuition and fees: $9,600
  • MBA graduates with debt: 54 percent
  • Average MBA debt balance: $18,500
  • Average starting compensation: $93,625

11. University of Mississippi

  • Annual MBA tuition and fees: $13,500
  • MBA graduates with debt: 28 percent
  • Average MBA debt balance: $24,806
  • Average starting compensation: $65,300

12. University of Florida (Hough)

  • Annual MBA tuition and fees: $14,859
  • MBA graduates with debt: 38 percent
  • Average MBA debt balance: $34,426
  • Average starting compensation: $115,664

13. San Diego State University

  • Annual MBA tuition and fees: $14,446
  • MBA graduates with debt: 15 percent
  • Average MBA debt balance: $29,066
  • Average starting compensation: $61,467

14. New Jersey Institute of Technology

  • Annual MBA tuition and fees: $22,690
  • MBA graduates with debt: 17 percent
  • Average MBA debt balance: $29,637
  • Average starting compensation: $78,167

15. University of Wisconsin — ​Whitewater

  • Annual MBA tuition and fees: $9,504
  • MBA graduates with debt: 67 percent
  • Average MBA debt balance: $8,000
  • Average starting compensation: $57,000

16. University of California — ​Riverside (Anderson)

  • Annual MBA tuition and fees: $29,124
  • MBA graduates with debt: 7 percent
  • Average MBA debt balance: $41,805
  • Average starting compensation: $103,041

17. University of Connecticut

  • Annual MBA tuition and fees: $15,368
  • MBA graduates with debt: 37 percent
  • Average MBA debt balance: $34,161
  • Average starting compensation: $107,648

18. University of South Dakota

  • Annual MBA tuition and fees: $8,818
  • MBA graduates with debt: 31 percent
  • Average MBA debt balance: $23,250
  • Average starting compensation: $53,417

19. University of Texas of the Permian Basin

  • Annual MBA tuition and fees: $6,482
  • MBA graduates with debt: 53 percent
  • Average MBA debt balance: $18,634
  • Average starting compensation: $60,750

20. University of North Texas

  • Annual MBA tuition and fees: $9,327
  • MBA graduates with debt: 36 percent
  • Average MBA debt balance: $29,867
  • Average starting compensation: $70,036

3 strategies for getting an MBA without the debt

Private student loans can be a great way to cover the costs of graduate school. But limiting how much you borrow is the most reliable way to ensure you can repay MBA debt quickly. But you’ll need to carefully choose cost-effective schools — like those listed in the MBA program rankings above.

You can cut costs further by following these three strategies.

1. Pursue scholarships, grants, and fellowships

Your net price for an MBA program could be significantly lower if you can snag free money through financial aid such as scholarships, grants, and fellowships.

There will be some tough competition for these types of financial aid, however. According to the GMAC survey, full-time MBA students expected to get around 30 percent of their MBA funding from grants, fellowships, and scholarships.

On the other hand, the GMAC survey also noted that business schools have been seeing fewer applicants overall. With a smaller pool of applicants, MBA programs are more likely to compete for top candidates and offer financial incentives such as institutional aid.

To give yourself the best chance of paying less, apply to a few business schools and pursue multiple forms of financial aid. Then compare your total financial aid package and real costs at each school.

An MBA program with higher tuition could cost less if it comes with more scholarships or a generous fellowship.

2. Earn money and an MBA at the same time

Many business schools are providing more flexible options for earning an MBA. Part-time programs and online MBAs can be a smart choice for students looking to earn a paycheck and a graduate degree at the same time.

Flexible MBA options can help make a degree more affordable in few ways:

  • You can stretch out your MBA costs. Annual tuition will be lower for a part-time program.
  • You can continue working and earning money. In other words, you can afford to pay as you go. By holding down a job and stretching out tuition, you might be able to cover costs out of pocket and avoid debt altogether.
  • You can get your employer to pay some of your MBA costs. Many benefits packages include educational stipends or tuition reimbursements. Talk to your employer and see if it offers these benefits or would be willing to do so.

3. Consider a one-year MBA program

Many business schools offer alternatives to the traditional full-time, two-year MBA. A one-year MBA will help you graduate faster and earn the six-figure pay common for MBA holders sooner.

Interested applicants should be aware that one-year MBAs often have more specific application requirements. You’ll likely need to have a business-focused undergraduate degree to meet prerequisite requirements, according to Poets & Quants.

One-year MBA programs also tend to offer lower total tuition and enrollment costs than two-year programs. In fact, compared to a two-year MBA, the total costs of a one-year MBA can represent a savings of 25 to 50 percent.

A one-year MBA program can be a smart but intense option. You’ll need a lot of stamina and a sterling work ethic to keep up. But if the reward is saving tens of thousands of dollars and getting a jump-start on your career, it could be a bet worth taking.

With some creativity and dedication, students can limit their MBA debt. The MBA application process is long and intensive — but your work doesn’t stop there. Devote the same amount of time, energy, and research to figuring out how to pay for business school.

Rank Business School Average Indebtedness Percentage of graduates with debt Annual tuition and fees Average starting compensation
1 Lehigh University $0 0% $19,350 $86,667
2 Oklahoma City University $11,331 9% $16,230 $101,090
3 University of Texas —​ Dallas $7,132 25% $19,048 $83,000
4 Missouri University of Science and Technology $11,386 19% $15,402 $66,667
5 Oklahoma State University (Spears) $18,728 22% $12,121 $70,700
6 University of Missouri (Trulaske) $20,495 20% $14,599 $64,252
7 Florida State University $14,379 31% $18,693 $67,308
8 West Virginia University $18,608 33% $9,450 $58,488
9 Louisiana State University—​Baton Rouge (Ourso) $17,900 27% $17,800 $62,429
10 West Texas A&M $18,500 54% $9,600 $93,625
11 University of Mississippi $24,806 28% $13,500 $65,300
12 University of Florida (Hough) $34,426 38% $14,859 $115,664
13 San Diego State University $29,066 15% $14,446 $61,467
14 New Jersey Institute of Technology $29,637 17% $22,690 $78,167
15 University of Wisconsin —​ Whitewater $8,000 67% $9,504 $57,000
16 University of California —​ Riverside (Anderson) $41,805 7% $29,124 $103,041
17 University of Connecticut $34,161 37% $15,368 $107,648
18 University of South Dakota $23,250 31% $8,818 $53,417
19 University of Texas of the Permian Basin $18,634 53% $6,482 $60,750
20 University of North Texas $29,867 36% $9,327 $70,036
21 Lamar University $32,118 20% $5,365 $55,000
22 University of Georgia (Terry) $34,025 43% $15,670 $108,321
23 University of Arizona (Eller) $44,654 21% $24,100 $109,219
24 University of Cincinnati (Lindner) $29,437 33% $20,958 $77,606
25 Brigham Young University (Marriott) $38,355 53% $12,310 $121,655
26 Auburn University (Harbert) $32,628 16% $23,988 $65,558
27 Temple University (Fox) $27,770 41% $28,512 $99,539
28 Arkansas State University — ​Jonesboro State $38,000 35% $9,414 $74,500
29 Binghamton University —​ SUNY $24,779 42% $16,776 $63,808
30 University of Iowa (Tippie) $44,583 30% $23,234 $106,061
31 Purdue University—​West Lafayette (Krannert) $43,355 33% $22,418 $105,524
32 University of Tennessee — ​Knoxville (Haslam) $36,378 32% $19,894 $79,893
33 Xavier University (Williams) $28,646 33% $19,188 $62,443
34 University of Massachusetts —​ Amherst (Isenberg) $30,464 46% $16,087 $74,134
35 Mercer University —​ Atlanta (Stetson) $17,172 60% $19,632 $62,500
36 St. John’s University (Tobin) $28,291 21% $29,160 $59,276
37 Jacksonville University $30,334 35% $18,480 $62,500
38 University of Texas —​ El Paso $27,325 53% $11,940 $64,714
39 Arizona State University (Carey) $49,859 34% $29,150 $122,250
40 Stetson University $28,757 42% $24,216 $72,500
41 Michigan State University (Broad) $55,666 26% $30,600 $121,775
42 North Carolina State University (Jenkins) $40,473 35% $25,152 $90,500
43 St. Bonaventure University $19,455 54% $17,592 $50,000
44 University of Southern Indiana $49,887 40% $8,854 $84,100
45 La Salle University $21,429 49% $24,570 $55,867
46 SUNY —​ Oswego $16,677 65% $16,883 $48,000
47 University of Massachusetts — ​Dartmouth $31,824 13% $15,312 $40,800
48 University of California —​ Davis $52,039 27% $38,836 $115,176
49 University of Washington (Foster) $32,047 63% $33,339 $133,299
50 University of Tampa (Sykes) $41,517 30% $23,730 $70,796

Methodology: Student Loan Hero surveyed 116 MBA programs and ranked them by factors indicating students’ likelihood to avoid student debt:

1. The ratio of the average MBA debt balance to the average starting compensation

  • Average indebtedness figures sourced from the U.S. News & World Report education rankings
  • Compensation calculated as average starting salary (plus average signing bonus when listed) and sourced from the MBA program’s site or U.S. News & World Report listing if not provided by the college

2. Portion of students graduating with MBA debt, sourced from U.S. News & World Report

3. Annual 2017-18 in-state tuition and fees, sourced from each college’s site, normalized to assume two terms per year of attendance and 12 credit hours per term

Rankings weighted the first factor at half and the remaining two factors at a quarter each. All data was sourced August 28-31, 2017.

Need a student loan?

Here are our top student loan lenders of 2018!
LenderVariable APREligibility 
1 Important Disclosures for CollegeAve.

CollegeAve Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

  1. All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
  2. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7% variable Annual Percentage Rate (“APR”): 96 monthly payments of $179.28 while in the repayment period, for a total amount of payments of $17,211.20. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
  3. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Information advertised as valid as of 07/1/2018. Variable interest rates may increase after consummation.

2 Important Disclosures for Discover.

Discover Disclosures

  1. At least a 3.0 GPA or equivalent qualifies for a one-time cash-reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. Please visit DiscoverStudentLoans.com/Reward for any applicable reward terms and conditions.
  2. View Terms and Conditions at DiscoverStudentLoans.com/AutoDebitReward.

3 Important Disclosures for Ascent.

Ascent Disclosures

Before taking out private student loans, you should explore and compare all financial aid alternatives, including grants, scholarships, and federal student loans and consider your future monthly payments and income. Applying with a cosigner may improve your chance of getting approved and could help you qualify for a lower interest rate. Ascent Student Loans may be funded by Richland State Bank (RSB) or Turnstile Capital Management, LLC (TCM), which are not affiliated entities. Certain restrictions and limitations may apply. Ascent Student Loan products are subject to credit qualification, completion of a loan application, verification of application information and certification of loan amount by a participating school. All loan products may not be available in certain jurisdictions. Other terms and conditions apply. Ascent is a federally registered trademark of TCM and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.

  1. Competitive rates calculated monthly at the time of loan approval. (Rates are effective as of 8/01/2018 and include a 0.25% discount applied when a borrower in repayment elects automatic debit payments via their personal checking account.)
    Ascent Tuition: Variable rate loans are based on a margin between 2.00% and 11.00% plus the 1-Month London Interbank Offered Rate (LIBOR), rounded to the nearest 1/100th of a percent. The current LIBOR is 2.069%, which may adjust monthly. Your interest rate may increase or decrease, based on LIBOR monthly changes, resulting in an APR range between 3.82% – 12.82%. Fixed rate loans have an APR range between 5.54% and 14.59%.
    Ascent Independent: Variable rate loans are based on a margin between 4.00% and 12.50% plus the 1-Month London Interbank Offered Rate (LIBOR), rounded to the nearest 1/100th of a percent. The current LIBOR is 2.069%, which may adjust monthly. Your interest rate may increase or decrease, based on LIBOR monthly changes, resulting in an APR range between 5.49% and 12.77%. Fixed rate loans have an APR range between 7.06% and 13.72%.
  2. Payments may be deferred. Subject to lender discretion, forbearance and/or deferment options may be available for borrowers who are encountering financial distress.
  3. Making interest only or partial interest payments while in school will not reduce the principal balance of the loan. There are three (3) flexible in-school repayment options that include fully deferred, interest only and $25 minimum repayment. Click here for a Tuition repayment example.
  4. Flexible repayment plans may be offered with up to a fifteen (15) year repayment term for a variable rate loan and ten (10) year repayment term for a fixed rate loan. Students must be enrolled at least half-time at an eligible school. Minimum loan amount of $2,000. Ascent borrowers who choose a fixed rate option may ONLY select a loan term of five (5) or twelve (12) years (60 or 144 months, respectively). For certain loans with low balances the minimum monthly payment amount may cause the loan amortization schedule to be less than the selected term. Click here for Ascent Tuition cosigned loan current rates and repayment examples.
  5. Interest rate reduction of 0.25% for enrollment in automatic debit applies only when the borrower and/or cosigner signs up for automatic payments and the regularly scheduled, current amount due (including full, flat, or interest only payments, as applicable) is successfully deducted from the designated bank account each month. Interest rate reduction(s) will not apply during periods when no payment is due, including periods of In-School, Deferment, Grace or Forbearance. If you have two (2) returned payments for Nonsufficient Funds, we may cancel your automatic debit enrollment and you will lose the 0.25% interest rate reduction. You will then need to re-qualify and re-enroll in automatic debit payments in order to receive the 0.25% interest rate reduction.
  6. All applicants (individual and cosigner) are required to complete a brief online financial literacy course as part of the application process to be eligible for funding.
  7. Eligibility, loan amount and other loan terms are dependent on a number of factors, including: loan product, other financial aid, creditworthiness, school, program, graduation date, major, cost of attendance and other factors. Aggregate loan limits may apply. The cost of attendance is determined and certified by the educational institution.
  8. The legal age for entering into contracts is eighteen (18) years of age in every state except Alabama where it is nineteen (19) years old, Nebraska where it is nineteen (19) years old (only for wards of the state), and Mississippi and Puerto Rico where it is twenty-one (21) years old.
  9. 1% Cash Back Graduation Reward subject to terms and conditions, click here for details.
  10. Students can apply to release their cosigner and continue with the loan in only their name after making the first 24 consecutive regularly scheduled full principal and interest payments on-time and meeting the other eligibility criteria to qualify for the loan without a cosigner.

* Application times vary depending on the applicants ability to supply the necessary information for submission.


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

5 Important Disclosures for PNC.

PNC Disclosures

  1. Interest will continue to accrue during periods of deferment. You will receive quarterly interest statements during this deferment period. Paying the interest as it accrues each quarter will save you money over the repayment term of the loan because any accrued interest that you do not pay will be added to the principal balance at the end of the deferment period.
  2. If automatic payment is discontinued, you will no longer receive an automatic payment discount. A federal regulation limits the number of transfers that may be made from a savings or money market account. Please contact your financial institution for more information on transfer limitations on savings accounts.
  3. A request to release a co-signer requires that you have made forty-eight (48) consecutive timely payments with no periods of forbearance or deferment within the forty-eight (48) month timeframe. “Timely payment” means each payment is made no later than the 15th day after the scheduled due date of the payment. “Consecutive payment” means the minimum monthly payment must be made for forty-eight (48) months straight without any interruption. To qualify for a co-signer release, the borrower must submit a request, meet the consecutive, timely payment requirements, provide proof of income and pass a credit check.

PNC Bank is one of the nation’s largest education loan providers. For over 40 years, PNC has been committed to helping students and their families make possible the adventure of college.


6 Important Disclosures for SunTrust.

SunTrust Disclosures

Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit https://www.suntrust.com/loans/student-loans/private.

Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this loan program without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.

SunTrust Bank, Member FDIC. ©2018 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.

  1. Interest rates and APRs (Annual Percentage Rates) depend upon (a) the student’s and cosigner’s (if applicable) credit histories, (b) the repayment option and repayment term selected, (c) the requested loan amount and (4) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms effective for applications received on or after 10/01/2018. The current variable APRs for the program range from 4.001% APR to 13.001% APR and the current fixed APRs for the program range from 5.351% APR to 14.051% APR (the low APRs within these ranges assume a 7-year $10,000 loan, with two disbursements and no deferment; the high APRs within these ranges assume a 15-year $10,000 loan with two disbursements). The variable interest rate for each calendar month is calculated by adding the current One-month LIBOR index to your margin. LIBOR stands for London Interbank Offered Rate. The One-month LIBOR is published in the Money Rates section of The Wall Street Journal (Eastern Edition). The One-month LIBOR index is captured on the 25th day of the immediately preceding calendar month (or if the 25th is not a business day, the next business day thereafter), and is rounded up to the nearest 1/8th of one percent. The current One-month LIBOR index is 2.250% on 10/01/2018. The variable interest rate will increase or decrease if the One-month LIBOR index changes. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount.
  2. Any applicant who applies for a loan the month of, the month prior to, or the month after the student’s graduation date, as stated on the application or certified by the school, will only be offered the Immediate Repayment option. The student must be enrolled at least half-time to be eligible for the partial interest, fully deferred and interest only repayment options unless the loan is being used for a past due balance and the student is out of school. With the Full Deferment option, payments may be deferred while the student is enrolled at least half-time at an approved school and during the six month grace period after graduation or dropping below half-time status, but the total initial deferment period, including the grace period, may not exceed 66 months from the first disbursement date. The Partial Interest Repayment option (paying $25 per month during in-school deferment) is only available on loans of $5,000 or more. For payment examples, see footnote 7. With the Immediate Repayment option, the first payment of principal and interest will be due approximately 30-60 calendar days after the final disbursement date and the minimum monthly payment is $50.00. There are no prepayment penalties.
  3. The 15-year term and Partial Interest Repayment option (paying $25 per month during in-school deferment) are only available for loan amounts of $5,000 or more. Making interest only or partial interest payments while in school deferment (including the grace period) will not reduce the principal balance of the loan. Payment examples within this footnote assume a 45-month deferment period, a six-month grace period before entering repayment and the Partial Interest Repayment option. 7 year term: $10,000 loan disbursed over two transactions with a 7 year repayment term (84 months) and a 8.468% APR would result in a monthly principal and interest payment of $199.90. 10 year term: $10,000 loan disbursed over two transactions with a 10-year repayment term (120 months) and an 8.938% APR would result in a monthly principal and interest payment of $162.92. 15 year term: $10,000 loan disbursed over two transactions with a 15-year repayment term (180 months) and a 9.423% APR would result in a monthly principal and interest payment of $136.90.
  4. The 2% principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, cancelled, or returned. To receive this principal reduction, it must be requested from the servicer, the student borrower must have earned a bachelor’s degree or higher and proof of such graduation (e.g. copy of diploma, final transcript or letter on school letterhead) must be provided to the servicer. This reward is available once during the life of the loan, regardless of whether the student receives more than one degree.
  5. Earn an interest rate reduction for making automatic payments of principal and interest from a bank account (“auto pay discount”). Earn a 0.25% interest rate reduction when you auto pay from any bank account and an extra 0.25% interest rate reduction when you auto pay from a SunTrust Bank checking, savings, or money market account. The auto pay discount will continue until (1) automatic deduction of payments is stopped (including during any deferment or forbearance) or (2) three automatic deductions are returned for insufficient funds during the life of the loan. The extra 0.25% interest rate reduction when you auto pay from a SunTrust Bank account will be applied after the first automatic payment is successfully deducted and will be removed for the reasons stated above. In the event the auto pay discount is removed, the loan will accrue interest at the rate stated in your Credit Agreement. The auto pay discount is not available when payments are deferred or when the loan is in forbearance, even if payments are being made.
  6. A cosigner may be released from the loan upon request to the servicer provided that the student borrower is a U.S. citizen or permanent resident alien, has met credit criteria and met either one of the following payment conditions: (a) the first 36 consecutive monthly principal and interest payments have been made on-time (received by the servicer within 10 calendar days after their due date) or (b) the loan has not had any late payments and has been prepaid prior to the end of the first 36 months of scheduled principal and interest payments in an amount equal to the first 36 months of scheduled principal and interest payments (based on the monthly payment amount in effect when you make the most recent payment). As an example, if you have made 30 months of consecutive on-time payments, and then, based on the monthly payment amount in effect on the due date of your 31st consecutive monthly payment, you pay a lump sum equal to 6 months of payments, you will have satisfied the payment condition. Cosigner release may not be available if a loan is in forbearance.
  7. If the student dies after any part of the loan has been disbursed, and the loan has not been charged off due to non-payment or bankruptcy, then the outstanding balance will be forgiven if the servicer is informed of the student’s death and receives acceptable proof of death. If the student becomes totally and permanently disabled after any part of the loan has been disbursed and the loan has not been charged off due to non-payment or bankruptcy, the loan will be forgiven upon the servicer’s receipt and approval of a completed discharge application. If the student borrower dies or becomes totally and permanently disabled prior to the full disbursement of the loan, and the loan is forgiven, all future disbursements will be cancelled. Loan forgiveness for student death or disability is available at any point throughout the life of the loan.

7 Important Disclosures for LendKey.

LendKey Disclosures

Additional terms and conditions apply. For more details see LendKey


8 Important Disclosures for CommonBond.

CommonBond Disclosures

A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.

Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.

Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
If you are unable to pay your government loan, the government can refer your loan to a collection agency or sue you for the unpaid amount. In addition, the government has special powers to collect the loan, such as taking your tax refund and applying it to your loan balance.

A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If you refinance your government loan, your new lender will use the proceeds of your new loan to pay off your government loan. Private student loan lenders do not have to honor any of the benefits that apply to government loans. Because your government loan will be gone after refinancing, you will lose any benefits that apply to that loan. If you are an active-duty service member, your new loan will not be eligible for service member benefits. Most importantly, once you refinance your government loan, you will not able to reinstate your government loan if you become dissatisfied with the terms of your private student loan.

If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you are a borrower with a secure job, emergency savings, strong credit and are unlikely to need any of the options available to distressed borrowers of government loans, a refinance of your government loans into a private student loan may be attractive to you. You should consider the costs and benefits of refinancing carefully before you refinance.

If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.

Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.


9 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Student Loan Rate Disclosure: Variable rate, 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 October 1, 2018, the one-month LIBOR rate is 2.22%. Variable interest rates range from 4.19%-12.16% (4.19%-12.06% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 5.25%-12.19% (5.25% – 12.09% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown requires application with a cosigner, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school 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. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan.
  2. Multi-year approval funds available for future use are subject to a soft credit inquiry at time of your next request to verify continued eligibility. After we make the initial Loan to you, we may refuse to allow you to take out additional loans under the multi-year approval feature, terms and conditions will be outlined in your promissory note. Please Note: International students are not eligible to receive an offer for multi-year approval. Please Note: International Students are not eligible for the multi-year approval feature.
  3. 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.
  4. 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.
  5. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply.
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