If you plan to get an MBA, be ready for sticker shock. Throughout a lifetime, people with an MBA earn $3 million more on average than those with a bachelor’s degree in business administration. In 2024, most MBA student will use loans to cover at least part of their tuition, despite grants and scholarships available.
Many private student loan lenders offer special plans for MBA graduates, as they often outperform those with other graduate degrees. However, where can we get the best MBA student loans of 2024? This article analyzes various factors including interest rates, auto-pay discounts, credit requirements, eligibility, repayment terms, and fees from lenders to determine the best MBA student loans for 2024.
Best MBA Student Loans of 2024
In 2024, you can use MBA student loans to assist with the expense of your Master of Business Administration (MBA). Flexible payback terms are typically offered for various expenses such as books, supplies, accommodation, tuition, and fees. Lenders offer postponement of payments for students pursuing their degree and internship, with rates ranging from 4 to 16 percent.
A Master of Business Administration degree may be more reasonable to obtain with a loan, but it’s crucial to consider your options. Find out where to go for MBA student loans and what to look for in a lender when selecting one in 2024.
College Ave
College Ave stands out among online MBA student loan lenders by offering an expedited application process and a variety of loan terms. In addition, College Ave provides a nine-month grace period and student debt restructuring.
This lender provides high amounts, flexible repayment terms, variable and fixed rates, hardship protections, no co-signer requirement for U.S. students, co-signer release, no origination fees, and in-school payments. Loans eligible for undergraduate and graduate programs, graduate health professions, and parent loans have a minimum of $1,000 and a maximum of up to attendance cost.
Earnest
Earnest is a loan lender that offers benefits to MBA students in 2024, allowing them to complete their degree on the side without requiring full-time grad school enrollment. In addition, Earnest offers loan flexibility, allowing students to request a year’s payment skip if they consistently make timely payments. However, this will add an extra month to repayment, accrue interest, and lower the amount of forbearance.
After graduation, Earnest offers refinance loans with “Precision Pricing” to help adjust loan payments to match income better. Earnest offers various repayment options for students with loans. These include in-school full payment, interest-only payment, in-school fixed payment, full interest-and-principal payment, post-graduation interest-only payment, extended term payment, rate-reduction payment, deferment, and forbearance. Enrollment in a Title-IV non-profit school, U.S. citizens, permanent residents, international students, and DACA recipients are eligible for this program.
Federal Direct Unsubsidized Loan
Federal direct unsubsidized loans are the best graduate student loan option due to their low fixed interest rate and lack of credit-based requirements. All eligible borrowers qualify and receive the same rate regardless of credit history. Private student loans may offer lower interest rates for creditworthy borrowers, but they lack consumer protections.
Federal direct unsubsidized loans offer income-driven repayment options and loan forgiveness for public service workers. Despite an origination fee of 1.057%, the low interest rate and loan benefits make the fee worthwhile for many borrowers. It offers loan terms ranging from 10 to 25 years, with amounts up to $138,500. Furthermore, its eligibility requires half-time enrollment in a federal direct loan program, with forbearance options.
Sallie Mae
Sallie Mae, a publicly traded consumer bank, offers private student loans to cover various educational expenses, including undergraduate, graduate, and professional degrees. In addition, Sallie Mae Bank offers families assistance in budgeting and financing college through savings plans and other resources. This lender offers student loans, covering school-certified expenses with no origination fee and a 0.25-percentage-point interest rate discount. However, it does not refinance and encourages co-signers.
SoFi
You can borrow up to the cost of attendance for your MBA program with SoFi’s graduate school loans. Additionally, you can choose to make interest-only or partial payments during school or postpone payments until six months after graduation. You have the option to pay the entire principal and interest balance during your program if you’d like.
SoFi, unlike some lenders, permits borrowers to borrow the entire cost of attendance, unlike some that set borrowing limits. In addition, SoFi provides longer terms for repayment than its rivals, which makes it a more accommodating choice. SoFi requires U.S. citizens, permanent residents, or nonpermanent residents, majority age, half-time enrollment, satisfactory academic progress, and no credit or income requirements.
Grad PLUS Loan
Students pursuing graduate and professional degrees are eligible for the Grad PLUS Loan. In contrast to the Direct Unsubsidized Loan, applicants for this type of loan must be approved by a credit check. If not, they must include an endorser, who functions similarly to a cosigner.
Following graduation, dropping below half-time enrollment, or leaving school, there is a six-month grace period. There are numerous repayment options available to borrowers, with terms ranging from 10 to 25 years. The Direct Unsubsidized Loan rate is lower than that of the Grad PLUS Loan rate. You might be able to get a better rate from a private lender if you have good credit or a cosigner with good credit.
Ascent
Ascent has revolutionized the way students finance their education by offering student loans. The company offers flexible repayment plans, allowing borrowers to postpone payments for up to nine months and receive a 0.25% interest rate reduction through automatic payments. Also, a borrower can receive a $525 reward for referring a friend.
Borrowers of the company’s MBA student loans have the option of a variable or fixed APR. However, when the auto-pay discount is taken into account, its fixed APRs can reach as high as 16.43%. The rate you receive may vary depending on your specific situation, despite having a high maximum compared to other lenders. Furthermore, the company requires a minimum income of $400,000 for MBA borrowers without a co-signer.
Final Thoughts
Compare available rates, funding limits, and loan terms before selecting an MBA student loan. To determine your eligibility, ensure that the private lender has disclosed their minimum income requirements and/or credit score. Consider having a creditworthy co-signer sign your loan to increase your interest rate changes.