The average student pays around $60,000 a year for b-school — though costs can get as high as $100,000 annually for top-tier programs. Fortunately, you have your choice of both federal and private student loans to help cover the cost of your MBA.
How we picked these loans
Because business school is so expensive, we searched for lenders that offered high borrowing limits, low interest rates and borrower perks like multiyear approval and flexible repayment plans.
The 4 best private student loans for business school
Before you compare lenders, looking at your personal finances and nailing down your priorities can help you find a loan that best meets your needs.
Citizens One MBA Student Loans: Best for multiyear approval
Loan amounts: $1,000 to 100% of your school-certified cost of attendance
Fixed APRs: 4.45% to 10.59% with discounts
Variable APRs: 3.08% to 9.81% with discounts
Terms: 5, 10 or 15 years
Eligibility requirements:
US citizen, permanent resident or international student with a qualified cosigner
Enrolled at least half time in a degree-granting program at an eligible institution
Good credit or have a qualified cosigner
Age of majority in your stateor have a cosigner who is
No prior student loan defaults
Multiyear approval and no origination fees put Citizens One’s MBA Student Loan at the top of our list. It also offers a high aggregate loan limit of $225,000, which allows students to borrow enough to fund their whole MBA program.
Deferred repayments. Hold off on making repayments for up to eight years while you’re in school and during your six-month grace period.
Interest-only repayments. Make repayments toward the interest that accrues while you’re in school and during your six-month grace period.
Full repayments. Make full monthly repayments of principal and interest immediately after your funds are disbursed.
College Ave MBA Loan: Best for a variety of loan terms
Loan amounts: $1,000 to 100% of your school-certified cost of attendance
Fixed APRs: 5.97% to 11.68% with autopay discount
Variable APRs: 5.22% to 10.92% with autopay discount
Terms: 5, 8, 10 or 15 years
Eligibility requirements:
US citizen or international student with qualified cosigner
Enrolled at least half time in a relevant degree program
Good credit or have a qualified cosigner
Maintain satisfactory academic progress with your institution
College Ave’s MBA Loan is ideal for students who want options. The lender offers multiple repayment plans as well as four different loan terms. It touts that its online application only takes three minutes to complete, and there are no origination fees.
Full repayments. Make full repayments of principal and interest while you’re in school to save on the total cost of your loan.
Interest-only repayments. Only pay the interest that accrues each month while you’re in school and during your nine-month grace period.
Fixed repayments. Make $25 monthly repayments while you’re in school and during your nine-month grace period to reduce the amount of interest that adds up.
Deferred repayments. Hold off on making any repayments while you’re in school and during your nine-month grace period.
Commonbond Master Business School Loan: Best for low interest rates
Loan amounts: $1,000 to 100% of your school-certified cost of attendance
Fixed APRs: 5.37% to 7.2% with autopay discount
Variable APRs: 5% to 6.71% with autopay discount
Terms: 10 or 15 years
Eligibility requirements:
US citizen or permanent resident
Enrolled at least half time at a school in its network
Meet credit criteria or have a qualified cosigner
If low rates are your main priority, then Commonbond might be for you. Its rates top out at 7.2% — much lower than other MBA loan providers out there. It also offers 12 months of forbearance should you have a financial hardship that makes you unable to make repayments.
Deferred repayments. Hold off on making repayments while you’re in school and during your six-month grace period.
Interest-only repayments. Make interest-only repayments each month while you’re in school and during your six-month grace period.
Full repayments. Begin making full repayments of principal and interest immediately after your funds are disbursed to lower the overall cost of your loan.
Sallie Mae MBA Loan: Best for flexible repayment options
Loan amounts: $1,000 to 100% of your school-certified cost of attendance
Fixed APRs: 5.5% to 10.23% with autopay discount
Variable APRs: 4.12% to 9.75% with autopay discount
Terms: 15 years
Eligibility requirements:
Graduate student enrolled in an MBA program at a participating degree-granting school
US citizen, permanent resident or have a creditworthy cosigner who is
Meet credit and other eligibility criteria or have a qualified cosigner who does
Sallie Mae’s MBA Loan stands out thanks to its flexible repayment options. Want to get settled in your career before making full repayments? You have the option of making interest-only repayments for up to a year once your six-month grace period is up. Entering an internship after graduation? You can defer repayments for up to four years.
Deferred repayments. Wait to make full repayments of principal and interest until six months after you graduate or drop below half-time enrollment. You also have the option to defer repayments for up to four years during your internship program.
Fixed repayments. Make $25 monthly repayments while you’re in school and during your six-month grace period to cut down on how much interest accrues.
Interest-only repayments. Pay any interest that accrues each month while you’re in school and during your six-month grace period to reduce the overall cost of your loan. Choosing this option comes with lower rates than if you’d chosen the deferred or fixed repayment plan.
Graduated repayment plan. Once your grace period is up, you can choose to make interest-only repayments for up to one year. Your loan must be in good standing to be approved for this. And the 15-year term won’t be extended, making future repayments more expensive.
Compare other private student loans for business school
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
You also have two federal loan options to help you cover the cost of b-school. While these come with more flexible repayment plans than most private MBA school loans, they don’t have the most competitive interest rates. You might want to compare these options to private lenders to make sure you’re getting the best deal available to you.
Annual limit
Lifetime limit
Interest rate
Fees
Terms
Direct Unsubsidized Loans
$20,500
$138,500
4.3%
1.059%
Deferred repayments during school and six months after you graduate.
Standard repayment term of 10 years, with options for income-based and extended repayment plans up to 25 years
Direct PLUS Loans
Up to 100% of the school-certified cost of attendance
None
7.08%
4.236%
Deferred repayments during school and six months after you graduate.
Standard repayment term of 10 years, with options for income-based and extended repayment plans up to 25 years
Trying to avoid taking on debt? Check out these alternatives to student loans:
Private scholarships. Available through private organizations as well as your school, scholarships are ideal since they don’t have to be repaid. Look for scholarships specific to students in the business field.
Corporate sponsorship. Ask your employer if they have a corporate sponsorship program. These programs might include full or partial college funding, reimbursement for tuition or access to company resources to help cover the cost of b-school.
University assistantship programs. Some universities offer tuition assistance for students who take on an assistantship position at the college. Depending on your previous experience, you could assist with teaching lower level courses, conducting research or helping out with administrative duties.
Bottom line
You can choose from both federal and private student loans to help fund your graduate-level business degree. While federal loans come with more flexible repayment plans, you might get a lower interest rate with a private lender — especially if you have excellent credit or a cosigner who does.
The simplest answer: Borrow as little as possible. We recommend applying for as many scholarships and grants as you can to avoid taking on too much student debt. And if you need help covering living expenses on top of tuition and fees, you might want to try finding a part-time job before taking out more student loans.
It depends on the jobs available in your area and other expenses you have on top of your student loan repayments. Most schools offer data regarding employment rates and typical graduates’ salaries. This can help you estimate what your financial situation might look like in comparison to your student loan debt.
If you can afford to, yes. This will lessen the amount you owe after graduation and how much you pay overall in interest. Just keep in mind that if you choose to make full repayments immediately, you might lose access to deferment options with some private lenders.
Deni Sharp is a freelance writer with years of experience in higher education, particularly student loans and financing. She has a passion for helping students navigate the trenches of financial aid so they can realize their full potential. In her free time, you can find her at home in Arizona hanging with her family and adorable pup Theo.
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