MBA Student Loans

As one of the most popular disciplines to study at the graduate or professional level, an MBA can be an expensive undertaking. While it may seem like financial aid options are few and far between for graduate students, there are actually several specialized MBA student loans and generalized graduate study loans available. Many of these alternative loans for MBA and graduate programs can be used toward tuition, as well as other college fees, including books, housing, and even travel costs associated with internship programs.

As with all loans, you should start with federally funded options first, particularly the Stafford graduate loan, which includes low interest rates and flexible repayment options. The loan limit for the first four years of graduate school is capped at $20,500 per year (or $8,500 subsidized without interest), with a maximum of $138,000 when you include previous undergraduate funding ($65,000 max subsidized).

Any other loan consideration will not be available until allowable government funding is applied and will simply cover the remaining cost beyond what the federal aid achieves. Repayment can be set up in several ways: with a fixed payment each period throughout the entire term of the loan; a graduated payment that starts off small and increases over the course of the loan term; or an income-sensitive plan where your payment amount is based on your annual salary.

To help bridge the gap between the funds provided by the federal government and the total cost of your education, or if you don't qualify for government funding, there are also alternative MBA student loans from private sources. While you should avoid borrowing from banks or private lenders until only after you've exhausted all other options, many of these loan programs have low interest rates and flexible repayment options. One other avenue to explore is through your school or business program, as many have student loan programs for both domestic and international students.

Paying for school is not easy, but we are here to help. OEDb's student finance section will help you find the money you need to pay your tuition and other college expenses. We cover scholarships, college grants, and student loans. Scholarships and grants are both forms of "free money", meaning they don't need to be paid back. Scholarships are typically awarded by businesses or individuals, with the money being earmarked specifically for tuition. They can be awarded based on a student's location or by religious affiliation, such as Catholicism or Islam. Grants are typically awarded by governments or non-profit organizations and the money often can be applied to several different expenses a student may incur, not solely tuition. They can be awarded based on location or ethnicity, for instance African American or Hispanic. Loans are not considered "free money", because unlike scholarships and grants, they do need to be paid back after graduation. Common federal loans include Perkins and Stafford. Loans are also available by location.