MBA Loans
The Average Cost of an MBA Program
Business school can be expensive. An MBA program can range from around $50,000, to more than $200,000 for a full-time, two-year program depending on the university you attend, with the top MBA schools in the country being some of the most expensive.
Though MBA programs are fairly costly, they also can have a big ROI when it comes to salary. According to Payscale.com, the average annual salary of an MBA holder is $87,000. US News reports that the average starting salary for a 2020 MBA grad will be $79,043. With more than ten years’ experience, it’s not uncommon for these numbers to top six figures.
However, your salary can swing wildly based on concentration (with consulting and financial services at the top of the pay scale and government or non-profit at the bottom).
While it’s useful to know how much you might earn after graduation, it’s also wise to plan upfront how much your MBA will cost so you choose a program you can afford. For example, if you plan to work for the government, where the average salary for an MBA holder is $74,825, you may not want to attend University of Pennsylvania’s Wharton School of Business, where the cost of completing your MBA can top $200,000.
Private Student Loan Lenders
- Variable Rates: 1.13% APR - 11.23% APR. Fixed Rates: 3.50% APR - 12.60% APR. Lowest rates shown include the auto debit discount.1
- Choose from multiple repayment options, including no payments while in school1
- No origination fee or prepayment penalty2
- Cover up to 100% of your school-certified college expenses like tuition, fees, books, housing, meals, travel, and even a laptop for the entire school year3
- The only undergraduate student loan that offers 4 months of Chegg® study help 4
This loan is for undergraduate students at participating degree-granting schools. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend a participating school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and provide an unexpired government-issued photo ID to verify their identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
1Interest 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. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit 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, if available for the loan.
2Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
3Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half time.
4This promotional benefit is provided at no cost to borrowers with undergraduate or parent loans with a first disbursement between May 1, 2021 and April 30, 2022. Borrowers are not eligible to activate the benefit until July 1, 2021. Borrowers who reside in, attend school in, or borrow for a student attending school in Maine are not eligible for this benefit. Chegg Study® offers expert Q&A where students can submit up to 20 questions per month. No cash value. Terms and Conditions apply. Please visit http://www.chegg.com/legal/smtermsandconditions for complete details. This offer expires one year after issuance.
Information advertised valid as of 8/25/2021
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.
Sallie Mae loans are made by Sallie Mae Bank.
Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.
© 2021 Sallie Mae Bank. All rights reserved. SLM Corporation and its subsidiaries, including Sallie Mae Bank are not sponsored by or agencies of the United States of America.
- Competitive fixed and variable APRs starting at 0.99%1
- Multiple repayment options including: full principal and interest, interest-only, deferred, and flat payment
- Flexible payment terms ranging from 5, 8, 10, and 15 years2
- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum)3
- No origination, application and processing fees, no fees for early repayment
- Apply online in 3 minutes and get an instant credit decision
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.
1Rates shown are for the College Ave Undergraduate Loan product and include autopay 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.
2This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 8/9/2021. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
- Competitive fixed & variable rates starting at 3.99% APR1
- Flexible 5, 10, or 15-year terms
- Award-winning customer service every step of the way
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). The following table displays the estimated monthly payment, total interest, and Annual Percentage Rates (APR) for a $10,000 loan. The Annual Percentage Rate (APR) shown for each in-school loan product reflects the accruing interest, the effect of one-time capitalization of interest at the end of a deferment period, a 2% origination fee, and the applicable Repayment Plan. All loans are eligible for a 0.25% reduction in interest rate (ACH discount) by agreeing to automatic payment withdrawals once in repayment, which is reflected in the APR shown for Full Principal and Interest Repayment Plan loans. Variable rates may increase after consummation. All variable rates are based on a 1-month LIBOR assumption of 0.99 as of April 25, 2017.
Under the Full Deferment Repayment Plan option, interest and principal may be deferred while a borrower is enrolled in school on at least a half time basis, and for an additional six month grace period (up to a maximum of 60 consecutive months) following (i) graduation, (ii) termination of enrollment, or (iii) if a borrower ceases enrollment on at least a half-time basis, at which time interest is capitalized and a 60-month repayment period (5-year term), a 120-month repayment period (10-year term) or a 180-month repayment period (15-year term) begins. There are three other Repayment Plan options available, an Interest Only Repayment plan, in which principal will be deferred and payments made on interest only during the same period described above after which payments will increase to full principal and interest payments, a Flat Repayment plan, in which payments of $25 will be made during the same period described above after which payments will increase to full principal and interest payments, and a Full Principal and Interest Repayment plan, in which payments will begin immediately after disbursement. A borrower's actual APR may vary depending on the repayment option selected by the borrower. The dollar amount of the origination fee is based on the amount borrowed and will be added to the outstanding loan balance upon disbursement. Loans are not offered or endorsed by the educational institution that you are attending. CommonBond is not affiliated with any educational institution.
For more information, visit https://commonbond.co/disclaimers#note3.
How Much Does the Average MBA Student Borrow?
How much MBA students need to borrow can be heavily influenced by the university attended. According to CNBC, a 2018 Bloomberg Businessweek survey reported that nearly half of all students at top business schools across the globe borrowed at least $100,000, and according to the National Center for Education Statistics (NCES), the average student loan balance for 2016-2017 for MBA graduates totaled $66,300.
Where to Start: Paying for Your MBA
When borrowing money for your MBA program, the first place you should always start is with grants, fellowships, scholarships, and federal student loans (MBA students may apply for unsubsidized loans and grad PLUS loans), so be sure to file the FAFSA®. Once you’ve exhausted these options you may still need additional money to cover the cost of your program and living expenses. This is where a private MBA loan may come into play.
What is an MBA Loan?
An MBA loan is a private graduate student loan specifically for those attending business school. Private student loans do not come with the same benefits as federal student loans, but the interest rates offered by various lenders may be lower and more competitive.
To qualify for an MBA Loan you must meet certain minimum eligibility standards. These include the following:
- U.S. citizen or permanent resident*
- Enrolled at least half-time as a graduate student (at an eligible institution)
- Making satisfactory academic progress (SAP)
- Have a positive, verifiable credit history — or a cosigner with a strong credit history
*Some lenders will accept applications from foreign borrowers applying with a creditworthy cosigner. The cosigner needs to be a U.S. citizen or permanent resident.
Of course, you should check with your lender to confirm eligibility requirements
How to Compare MBA Loans
When comparing MBA loans you will want to review the following:
- Interest rates
- Repayment terms
- Interest rate reductions for enrollment in auto-pay
- Benefits such as periods of forbearance for specific circumstances
- Cosigner release
- Loan minimums and maximums
MBA Loan Limits
The minimum loan amount you may be eligible to borrow for a private student loan is usually $1,000 but you will want to check with your lender.
The maximum amount you can borrow is the full cost of attendance, less other aid, as certified by your school.
Note: The maximum amount you are allowed to borrow is not necessarily indicative of the maximum amount you will qualify to borrow.
MBA Loan Interest Rates
Private MBA loans will have competitive interest rates. The rate you receive will depend on your creditworthiness, along with other factors as determined by your lender. Students with less than 2 years’ employment history may not qualify for a private MBA loan without a cosigner. If you do qualify without a cosigner, adding a cosigner with a stronger credit history may help you qualify for a lower rate.
What to do next?
Compare Private Student Loan Lenders