10 Best MBA Student Loans of December 2023
After exhausting free aid, evaluate your finances and employment situation to choose an MBA loan.
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You can get federal and private student loans for business school. If you need to finance part or all of an MBA, federal loans are the safer choice because of their flexible repayment terms.
A private MBA loan can make sense if you can qualify for a lower interest rate than the government offers and know your career trajectory — for example, if you’re in an executive MBA program. But before borrowing any MBA student loan, exhaust free aid like fellowships and employer sponsorships.
Here are our picks for the best MBA student loans and additional information on how to decide which is right for you.
Best MBA Student Loans
Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | None | 5.50-7.05% | N/A | ||
5.0 /5 | None | 7.54-7.54% | N/A | ||
 Sallie Mae Undergraduate Student Loan Check rateon Sallie Mae's website on Sallie Mae's website COMPARE RATESon Credible’s website on Credible’s website | 4.5 /5 | Mid-600's | 4.50-15.49% | 6.37-16.70% | Check rateon Sallie Mae's website on Sallie Mae's website COMPARE RATESon Credible’s website on Credible’s website |
 College Ave MBA Student Loan Check rateon College Ave's website on College Ave's website COMPARE RATESon Credible’s website on Credible’s website | 5.0 /5 | Mid-600s | 5.05-14.49% | 5.59-14.49% | Check rateon College Ave's website on College Ave's website COMPARE RATESon Credible’s website on Credible’s website |
 Ascent MBA Student Loan Check rateon Ascent's website on Ascent's website COMPARE RATESon Credible’s website on Credible’s website | 5.0 /5 | Low-Mid 600s | 5.83-16.16% | 7.17-16.08% | Check rateon Ascent's website on Ascent's website COMPARE RATESon Credible’s website on Credible’s website |
Our pick for
All borrowers as a first option
Federal unsubsidized direct loans have fixed interest rates and minimal fees, but graduate students can only take out up to $20,500 annually — which may not cover all your MBA costs.
Federal Subsidized/Unsubsidized Loan
None
5.50-7.05%
N/A
Graduate students are ineligible for subsidized loans.
- More flexible repayment options for struggling borrowers than other lenders.
- Subsidized loans do not collect interest while in school or during deferment.
- Lower interest rates than many private lenders.
- You pay an origination fee.
- No credit check or minimum income is needed to borrow.
- Loan amounts for undergraduates: $5,500 year one, $6,500 year two, $7,500 year three and thereafter, up to a total of $31,000
- Independent students and graduate students have higher loan limits.
- Undergraduate interest rate fixed at 3.73%, while grad students get higher 5.28% rate
Our pick for
Borrowers who want to minimize risk
Federal loans have options private loans don’t, like income-driven repayment and Public Service Loan Forgiveness, which offer unique flexibility and protections if you’re entering an uncertain job market.
Graduate students can take out up to their cost of attendance, minus other aid received, in PLUS loans.
- More flexible repayment options for struggling borrowers compared with private lenders.
- All borrowers who attend a school authorized to receive federal aid can qualify.
- May have higher interest rates compared with private lenders.
- You pay an origination fee.
- You can’t see if you’ll qualify without a hard credit check.
- Grad PLUS loan borrowers must not have adverse credit history.
- Borrowers with adverse credit history can still receive a grad PLUS loan by enlisting a co-signer without adverse credit history or documenting extenuating circumstances for their credit history.
- Loan amounts: Total cost of attendance minus other financial aid.
Our pick for
Students getting an MBA part-time
Sallie Mae Undergraduate Student Loan
Mid-600's
4.50-15.49%
6.37-16.70%
Rating and details displayed are for Sallie Mae’s private student loan. Sallie Mae MBA loans let you defer payments during an eligible internship for up to 48 months.
- One of the few lenders to provide loans to part-time students.
- Non-U.S. citizens, including DACA students, who live in the U.S. and attend school in the U.S. can apply with a qualified co-signer who is a U.S. citizen or permanent resident.
- You can't see if you’ll qualify and what rate you’ll get without a hard credit check.
- Typical credit score of approved borrowers or co-signers: Does not disclose.
- Minimum income: Did not disclose.
- Loan amounts: $1,000 up to 100% of the school-certified expenses.
College Ave MBA Student Loan
Mid-600s
5.05-14.49%
5.59-14.49%
College Ave MBA loans offer immediate, interest-only and flat payment plans, so you can minimize repayment costs while getting your degree.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- International students can qualify with a co-signer.
- Nine-month grace period is longer than other lenders offer.
- You must be at least halfway through your repayment term before you can request a co-signer release.
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to the total cost of attendance.
Our pick for
Borrowers with excellent credit
Private MBA loans can come with better interest rates and lower fees than federal options, if you have excellent credit.
Ascent MBA Student Loan
Low-Mid 600s
5.83-16.16%
7.17-16.08%
- Among the best for payment flexibility.
- Grace period of 9 months is longer than many lenders offer.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Stands out for features that enable faster loan repayment.
- You must be enrolled at least half-time to qualify.
- Typical credit score of approved borrowers or co-signers: Not available.
- Minimum income: Not available.
- Loan amounts: up to $400,000.
Earnest Undergraduate Loan
650
4.42-15.90%
5.62-16.20%
Rating and details displayed are for Earnest's private student loan.
- Option to skip one payment every 12 months.
- No late fees.
- Nine-month grace period is longer than most lenders offer.
- Loans aren't available in Nevada.
- Typical credit score of approved borrowers: 758.
- Minimum income: $35,000.
- Loan amounts: $1,000 up to your total cost of attendance.
SoFi MBA Loan
Mid-600s
4.99-13.15%
5.99-13.65%
Rating and details displayed are for SoFi's private student loan.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Multiple in-school repayment options available, including interest-only and flat-fee, and deferred for undergrad and grad students.
- Additional perks like career planning, job search assistance and entrepreneurship support available.
- Does not offer bi-weekly payments via autopay.
Discover MBA Student Loan
Varies
5.99-15.49%
6.99-16.39%
- International and DACA students can qualify with a qualified U.S. citizen or permanent resident co-signer.
- No late fees.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
Our pick for
International MBA students
Many lenders — including College Ave, Sallie Mae, Citizens and Discover — offer MBA student loans to international students who have an eligible co-signer. Without a co-signer, choices for international MBA students are limited.
MPOWER Private Student Loan
None
13.74-15.01%
N/A
- Offers a hard-to-find option: non-co-signed student loans for international and DACA students.
- Borrowers are assigned a dedicated student loan advisor.
- Borrowers can request forbearance of up to 24 months, which is longer than many lenders offer.
- Payment required while in school and during the grace period.
- Offers only one repayment term: 10 years.
- MPOWER considers future income potential but does not factor in credit scores.
- Loan amounts: Minimum $2,001. Maximum loan is $100,000, limited to $25,000 per academic period.
Our pick for
Borrowers who prefer an income-share agreement
- Periods of unemployment count toward your payment total.
- Lending decisions are not based on your credit score.
- You receive a discount for paying off your ISA early.
- Funding is available only to nursing students.
- Nursing certificate programs currently aren’t eligible.
- You must be within 12 months of graduation to qualify.
- Eligibility is based on factors like your GPA and potential cost of living, not credit score.
- Loan amounts: $1,000 to $15,000.
- Income share percentages: Typically range from 1.5% to 7.5%; average is 3.99%.
Which MBA student loan is right for you?
Look at your finances and repayment goals to choose a federal or private student loan to pay for an MBA:
Generally, max out federal direct unsubsidized loans first. These loans have small fees — roughly 1% — and fixed interest rates of 6.54% for the 2022-23 academic year. Those terms may be close enough to what a private lender would offer you that any additional cost is worth the protections that come with federal loans. You can take out up to $20,500 annually in unsubsidized loans.
Then, look at your career trajectory. If unsubsidized loans won’t cover all your costs — the average MBA student debt is $66,300, according to the most recent data from the National Center for Education Statistics — you can fill any remaining gap with federal grad PLUS loans or private loans. PLUS loans make sense if you want to work for a nonprofit, are changing careers or simply aren’t sure about your job prospects. Options like Public Service Loan Forgiveness and income-driven plans can help in these instances.
Or evaluate your current situation. Compare private MBA loan interest rates if you have strong credit and a good sense of your future income. For example, say your employer is sponsoring part of your MBA and you’ll earn a higher salary — and stay with the company for a set number of years — after you get your degree. You may feel OK taking on the risk of private loans to save on interest or overall costs.
Not sure which situation describes you? Stick with federal loans. You can always refinance MBA loans with a private lender at a lower rate if your plans come into focus later.
What to look for in a private MBA loan
If a private MBA loan makes sense for you, look for the following features to ensure it meets your education and repayment goals:
You can qualify. Some private lenders provide MBA loans only to some schools or programs. Make sure yours is eligible before applying with a lender.
Low interest rates and fees. Graduate PLUS loans currently have an interest rate of 7.54% and an origination fee of roughly 4%. Don’t take out a private MBA loan that doesn’t beat those numbers. Shop around with multiple lenders to compare their interest rates and fees to get the best deal possible.
Flexible repayment options. If you want to pay loans off fast, choose a lender that offers features like a five- or seven-year repayment term. Also, look at the options for borrowers struggling to make payments. You may not be expecting trouble now but should know your options if issues arise.
STUDENT LOAN RATINGS METHODOLOGY
Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loans and our editorial guidelines.
Last updated on August 30, 2023
NerdWallet's Best MBA Student Loans of December 2023
- Federal Subsidized/Unsubsidized Loan: Best for All borrowers as a first option
- Federal Grad PLUS Loan: Best for Borrowers who want to minimize risk
- Sallie Mae Undergraduate Student Loan: Best for Students getting an MBA part-time
- College Ave MBA Student Loan: Best for Students getting an MBA part-time
- Ascent MBA Student Loan: Best for Borrowers with excellent credit
- Earnest Undergraduate Loan: Best for Borrowers with excellent credit
- SoFi MBA Loan: Best for Borrowers with excellent credit
- Discover MBA Student Loan: Best for Borrowers with excellent credit
- MPOWER Private Student Loan: Best for International MBA students
- Avenify Income Share Agreement: Best for Borrowers who prefer an income-share agreement
Frequently asked questions
- What student loans can an MBA get?
Business school students can qualify for federal unsubsidized loans, as well as federal graduate PLUS loans. You can also borrow private student loans to pay for an MBA.
- What is an MBA loan?
Some lenders offer private student loans specifically for MBA students. MBA loans may or may not have different features than graduate student loans; opt for the loan with the best terms for you.
- How much do MBA students borrow?
The average business school graduate owes more than $66,000 in student loans, and 51% of MBAs take out student loans, according to the National Center for Education Statistics.
- What type of MBA student loan should I borrow?
Federal loans are usually your best bet. But you may want to consider a private MBA loan if your credit is excellent and you’re assured of a job with a strong income once you finish your program.
