Key Points
- MBA students can access both Direct Federal Loans and Private loans to pay for school.
- Starting in 2026, Direct Federal loans will have a lower limit of $20,500 annually for MBA students.
- Private loans will be a more common option for MBA students looking to supplement their federal student loans.
The best MBA student loans are federal loans, followed by private. But student loans aren’t the only way (or best way) to pay for business school.
The truth is: getting an MBA is expensive. The Masters of Business Administration degree could be a way to bolster your business skills – but it does come at a price. And is it worth it?
According to a recent Investopedia article, the average cost of tuition alone for a 2 year MBA program is $80,000. And that’s just tuition alone.
When you factor in the other expenses like books, room and board, and more, you could start seeing the price climb to between $100,000 and $200,000. And for a full time program, the opportunity cost of lost wages could be huge.
Whether you’re looking at a part-time MBA program or a full-time MBA program, you’re likely going to need student loans as one part of your financial aid pie. Here’s what you need to know about paying for your MBA program, including the best student loan options to pay for your MBA.
Let’s break it down.
How To Pay For Your MBA (Order Of Operations)
There is a smart order of operations to pay for your MBA program – and it doesn’t start with student loans. Before you ever embark on an MBA program, you need to strongly consider the ROI (Return On Investment) of your MBA program.
The goal of an advanced degree, like an MBA, is to help you move your career (and salary) forward. Beyond your current job, an MBA also enables you to build a stronger network that might allow you to get a better job after graduation.
However, you need to align your MBA with your skills and job experience. An MBA loses a lot of it’s value within 1-2 years after graduation. As such, you need to combine your MBA with your skills to maximize it’s value. If you’re over-educated and under-experienced, you won’t see a great ROI.
When it comes to calculating the ROI, it’s all about how much you’re going to spend, and how much debt you’re going to take on. Follow this list from best to worst to get an idea of how to pay for your MBA program.
- Employer Tuition Assistance Programs
- Your Own Savings
- Scholarships and Grants
- Direct PLUS Student Loans
- Private Student Loans
Of course, there are variations on a theme – especially when it comes to paying for an MBA. For example, your employer might cover all the costs of tuition, and you just need to pay for the remaining items. This could lead you to change your order of operations, since Direct PLUS loans might be off the table.
It’s always important to analyze what you need for your own situation.
Employer Tuition Assistance Programs
One of the awesome things about an MBA program is that many employers also different tuition assistance programs to help pay for all (or some) of the cost of getting your MBA. These programs might go under the name Tuition Reimbursement Program or Tuition Assistance Program.
For example, in my situation, my employer offered to reimburse me $5,250 per year until my MBA was paid off. This was win-win. It allowed me to get an MBA almost free, and my employer received some assurance that I would stick around – if I left, I didn’t get any of the accrued money that was owed to me.
As such, I had to take out student loans up front to pay for my MBA, but my employer reimbursed me annually until the student loans were paid off.
There are also student loan repayment programs that some employers are starting to offer. These can be a great asset if you already have student loans.
Your Own Savings
After looking into employer assistance programs, you can potentially consider using your own savings. This is especially true for individuals who are going back to school mid-career. You might have enough in savings to make a strong dent in the cost of your MBA program.
A few rules to keep in mind when using your own savings to pay for an MBA:
- Never use retirement plan money (i.e. don’t pull or take a loan from your 401k, IRA, etc.)
- Ensure that you have an emergency fund of at least 6 months
If you follow those rules, it’s safe to use the other money to pay for school. This could significantly reduce or eliminate the amount of student loans you would potentially need to borrow.
Scholarships And Grants
Going back to school for an MBA, you might to even have considered scholarships and grants as something MBA candidates “do”. But there is definitely free money available to graduate students like MBA candidates, and you should take advantage.
Check out this list of MBA scholarships available.
Also, don’t dismiss grants either. There are a lot of different grants that you might qualify for if you put some time and research into it. Check out our guide on using grants to pay for college.
Direct Graduate Student Loans
If you’ve exhausted all the options to pay for your MBA, it’s time to look at Direct Grad Student Loans. Direct Grad loans are the best student loans to take out for your MBA. The reason is simple: Grad Loans allow for income-driven repayment plans, student loan forgiveness, and hardship options like deferment and forbearance.
These loans can be take out to cover the maximum cost of attendance (according to your schools’ financial aid office), minus any other financial aid received. For most MBA candidates taking out student loans, Direct Grad Loans can make up the difference of what’s needed to pay for college.
Note: Starting in 2026, there will be new caps on Direct loans for graduate school of $20,500 per year, and $100,000 lifetime limit. Given that an MBA is a two year program, keep in mind you’ll likely face more issues with the annual limits versus the lifetime limit.
Direct Grad Loans have some of the highest interest rates for Federal loans, so it’s important to consider that when borrowing. If you have excellent credit, you might want to consider other options now or later.
Private Student Loans
Some MBA candidates cannot solely rely on Federal loans to pay for the cost of getting an MBA.
Either they exhaust Federal loan limits due to their school’s cost, they need more funds to cover living expenses while attending school, or they need more time to complete their education (which increases cost).
Others may find more value in taking on private loans given their excellent credit and ability to repay. In this case, private student loans may be a cheaper alternative due to low interest rates and excellent borrower programs.
We recommend borrowers shop and compare their private student loan options. It’s essential to get at least 2-3 quotes from lenders and see your options first. Platforms like Credible and Splash make comparison easy, but they don’t have all the lenders available.
Here are two other great private MBA student loan options:
Earnest
Earnest has traditionally been known for student loan refinancing, but they now offer fairly flexible private student loans as well.
They offer top notch rates and terms, and one of the most generous grace periods after graduation – at 9 months. They also don’t charge fees for origination, disbursement, prepayment, or late payment.
The flexible terms continue with the option to skip a payment once every 12 months. And you can even put your loans in forbearance during an unpaid parental leave.
Check our out full Earnest student loans review here.
Get a quote at Earnest here >>
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Earnest Student Loans Details |
|
|---|---|
|
Product Name |
Earnest Student Loan |
|
Min Loan Amount |
$1,000 |
|
Max Loan Amount |
Cost of Attendance |
|
Variable APR |
4.99% – 15.97% APR |
|
Fixed APR |
2.84% – 14.30% APR |
|
Loan Terms |
5, 7, 10, 12, or 15 Years |
|
Promotions |
None |
Sallie Mae MBA Student Loans
Sallie Mae is probably one of the most well-known lenders on this list. They are the nation’s largest private student loan lender by loan volume. As a result, they also offer some of the most competitive private MBA student loans out there.
You can take out Sallie Mae student loans starting at just $1,000 (which is one of the lowest) and can borrow up to the total cost of education². Sallie Mae has a variety of repayment plans to select from, they offer 48 months of deferment during your internship⁴, and 12-months of interest-only payments after your grace period⁵.
Read our full Sallie Mae review here.
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Sallie Mae MBA Student Loans Details |
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|---|---|
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Product Name |
Sallie Mae MBA Student Loan |
|
Min Loan Amount |
$1,000 |
|
Max Loan Amount |
Up to 100% of the school-certified expenses² |
|
Variable APR |
3.75% -13.38% APR¹ |
|
Fixed APR |
2.89% – 14.99% APR¹ |
|
Loan Terms |
10 to 15 Years |
|
Promotions |
None |
Ascent MBA Student Loans
Ascent Student Loans is a solid choice as a private lender – as they great graduate student loans for business school. They also offer a solid loan amount range from $2,001 – $400,000*, competitive rates, and easy repayment terms.
They offer loans starting at just $2,001* minimum, and they offer 48 month loan deferment while in school, and a grade period to postpone full principal and interest payments up to 36-months after graduation, up to 9-months after leaving the program, or otherwise dropping to less-than-half-time enrollment.
Read our full Ascent Student Loans review here.
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Ascent MBA Student Loans Details |
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|---|---|
|
Product Name |
Ascent MBA Student Loan |
|
Min Loan Amount |
$2,001 |
|
Max Loan Amount |
$400,000 |
|
Variable APR |
4.13% – 15.34% APR |
|
Fixed APR |
3.24% – 15.86% APR |
|
Loan Terms |
5, 7, 10, 12 15, or 20 years |
|
Promotions |
None |
International MBA Student Loans
International students cannot get federal student loans and must rely on private student loans. International students make up anywhere from 18% to 20% of the MBA population in the United States.
There are two main options for international student MBA loans. Prodigy allows international students to borrow up to $220,000. They also don’t require a US cosigner, and have various repayment options. Check out Prodigy here >>
Another option is MPower. They have a lower lifetime limit of $100,000, but also may be a good choice for international business school students.
Refinancing Student Loans After Graduation
If you’re finding this article after you’ve already taken out loans for your MBA, you might consider student loan refinancing for your MBA loan.
If you have private loans or high-interest Federal Loans (like the Direct PLUS Loans mentioned above), refinancing might allow you to lower your payment or save on interest on your MBA student loans. Through refinancing, you take out a new student loan from a private lender and use it pay off your other loans. With the new student loan, you may qualify for a lower interest rate, better repayment term, or lower monthly payment.
If you have Federal student loans, refinancing will cost you the ability to apply for an income-driven repayment plan or forbearance. That’s why, for many borrowers, we don’t think you should refinance your Federal student loan for a private student loan.
However, in some cases, MBA candidates are the exception to the rule. After getting your MBA, you might have the potential to see your salary rise by a significant amount of money. For many, this means they would benefit more from getting a student loan with a low interest rate, versus keeping a Federal student loan.
For example, Direct PLUS Graduate loans currently have an interest rate of 8.048%. But you can refinance with Credible and potentially save a lot in interest!
See if Credible makes sense to refinance. You can shop loans in 2 minutes. As a bonus to College Investor readers, you’ll get up to a $1,000 gift card when you refinance with Credible. See terms. Check out Credible today.
Final Thoughts
The bottom line is that getting an MBA can be expensive, but for many, it’s worth it. The trick is to ensure that you’re figuring out how much it’s worth – almost like Step 0 of your MBA education.
Remember, you can ensure that an MBA is valuable by paying as little as possible out of pocket. Start checking with your employer, and looking to maximize student loan tuition assistance programs. Only borrow in student loans what you absolutely have to.
Remember, what’s the end goal of your MBA degree? Don’t just go get an MBA “just ’cause'”. Have a clear path to getting a return, and be mindful of how you spend and pay for it.
Frequently Asked Questions About Student Loans For Your MBA
Which MBA student loan is best?
The best MBA student loan is going to be a federal Direct Graduate Loan. After that, it’s important that borrowers shop around for private loans and get multiple quotes.
Should students take out student loans for an MBA?
Only if necessary. The should exhaust other options first, especially programs like employer tuition reimbursement.
What to look for in an MBA student loan?
Borrowers should look at federal student loans first. After that, they can look at private MBA student loans. For these looks, borrowers should look at the interest rate, loan term, and repayment terms to find what works best for them.
How long are MBA loans?
Federal Direct loans can be extended to 25 years of repayment. Private MBA loans range from 5 to 20 years.
Ascent Student Loans
*Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent’s Terms and Conditions please visit AscentFunding.com/Ts&Cs.
Annual Percentage Rates (APRs) displayed are effective as of 4/1/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions, and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time.
The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation.1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 60-months (variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 5.68% APR, with 57 payments of $47.33 while in-school/grace, 60 payments of $191.86 during the repayment term, and a total cost of $14,210.36.
* $25 Minimum Payment: 6.34% APR, with 57 payments of $25.00 while in-school/grace, 60 payments of $230.84 during the repayment term, and a total cost of $15,275.51.
* Deferred Repayment: 6.53% APR, with no payment while in-school/grace, 60 payments of $266.69 during the repayment term, and a total cost of $15,974.38.
* Immediate Repayment: 3.68% APR, with 60 payments of $182.73, and a total cost of $10,963.90.
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 180-months (highest variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 15.34% APR, with 57 payments of $127.75 while in-school/grace, 180 payments of $142.26 during the repayment term, and a total cost of $32,891.85.
* $25 Minimum Payment: 13.90% APR, with 57 payments of $25.00 while in-school/grace, 180 payments of $229.01 during the repayment term, and a total cost of $42,647.76.
* Deferred Repayment: 14.31% APR, with no payment while in-school/grace, 180 payments of $271.14 during the repayment term, and a total cost of $45,162.88.
* Immediate Repayment: 15.09% APR, with 180 payments of $140.56, and a total cost of $25,301.47.
Earnest
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107.
Earnest loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770) One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
Actual rate and available repayment terms will vary based on your financial profile. Fixed annual percentage rates (APR) range from 3.09% to 16.74% (2.84% – 16.49% with Auto Pay discount). Variable annual percentage rates (APR) range from 5.24% to 17.10% (4.99% – 16.85% with Auto Pay discount). Earnest variable interest rate student loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent plus a margin and will change on the 1st of each month. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Our lowest rates are only available for our most credit qualified borrowers and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount from a checking or savings account. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change.
© 2026 Earnest LLC. All rights reserved.
Sallie Mae
¹Rates displayed are for medical school student loans:
Lowest rates shown include the auto debit discount: Additional information regarding the auto debit discount: Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. *These rates will be effective 3/02/2026.
Terms:
Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years.
² For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.
⁴ To apply for this deferment, customers and an official from the internship, clerkship, fellowship, or residency program must complete and submit a deferment form to us for consideration. If approved, deferment periods are issued in up to 12-month increments. Customers can apply for and receive a maximum of four 12-month deferment periods. Interest is charged during the deferment period and Unpaid Interest may be added to the Current Principal at the end of each deferment period, which will increase the Total Loan Cost.
⁵ GRP allows interest-only payments for the initial 12-month period of repayment when the loan would normally begin requiring full principal and interest payments or during the 12-month period after GRP request is granted, whichever is later. At the time of GRP request, the loan must be current. The borrower may request GRP only during the six billing periods immediately preceding and the twelve billing periods immediately after the loan would normally begin requiring full principal and interest payments. GRP does not extend the loan term. If approved for GRP, the Current Amount Due that is required to be paid each month after the GRP ends will be higher than it otherwise would have been without GRP, and the total loan cost will increase.
Editor: Colin Graves
Reviewed by: Ashley Barnett
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