Opinions are our own, but compensation and in-depth research determine where and how companies may appear. Learn more about how we make money. Data from the National Center of Education Statistics show that more than half of MBA students take on student debt to finance their degree.
However, not every MBA grad commands a six-figure salary. Earnings fluctuate depending on your location and the industry you work in, which means the difficulty of paying off tens of thousands of dollars of debt will also vary. Applications to MBA programs increased in , partly due to the pandemic recession.
Stacey Koprince, lead of content and curriculum at Manhattan Prep, a test preparation agency, says that one of the reasons why business school is so expensive is because of the people teaching the courses. Business schools also spend large amounts on resources to help students with career placement, says Barbara Coward, a consultant at MBA Admissions. So, how much does it cost to get an MBA? But tuition and fees are just the tip of the iceberg.
The cost of relocation, books, supplies, and other miscellaneous expenses can set you back several thousand dollars more. When borrowing money for school, federal loans should be your first choice.
They offer lower interest rates than most institutional and private loans, plus more flexible repayment options. To qualify, you just need to be in good academic standing and enrolled in school at least part-time. They currently have a fixed interest rate of 4. View details. Fixed APR: 3. Fixed APR: 2. Also available to non-U. Credible rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team.
Rates and terms. Fees and Discounts. Customer Experience. Citizens Private Student Loans. Fixed APR Lowest fixed rate available from this lender. Variable APR Lowest variable rate available from this lender. Loan amount Total amount you can borrow from this lender. Loan terms years How many years you have to repay the loan. View Details. Fees: Late fee Discounts: Autopay, loyalty Eligibility: Available in all 50 states international students can apply with a creditworthy U.
College Ave Private Student Loans. Sallie Mae Private Student Loans. Rates: Fixed, variable Min. Customer service: Email, phone, chat Soft credit check: Does not disclose.
Fixed APR: 4. Citizen or permanent resident. Not available in KY or NV. Customer service: Email, phone Soft credit check: Yes. Your school will use your FAFSA results to determine what federal loans you qualify for as well as how much you can borrow. To be eligible for a PLUS Loan, you must be enrolled as a graduate or professional student at least part-time. You can also defer Grad PLUS Loans for an additional six months after you leave school or drop below half-time enrollment. Private student loans can sometimes be deferred if you return to graduate school, depending on the lender.
Many MBA loans also let you defer payments until six months or longer after you graduate, which can give you time to get on your feet and into a new job before you have to worry about your student loan debt.
Most MBA loans are repaid over a term of five to 25 years. Federal student loans are, as the name implies, managed by the federal government. Interest rates and standard term lengths are the same for all borrowers, regardless of financial profile. Grad PLUS loans allow you to borrow up to the cost of attendance with an interest rate of 6. Private student loans , on the other hand, are managed by a number of private lenders that set their own interest rates, terms and eligibility requirements.
Generally you'll find lower rates and more flexible repayment timelines with private lenders if you have good credit, though you'll miss out on federal protections like forbearance, income-driven repayment plans and loan forgiveness programs.
Your interest rate will also be determined by your credit score and debt-to-income ratio, among other things. Of course, that number could be higher or lower depending on the price of your school and how many scholarships or grants you earn. Many MBA student loan lenders will let you borrow up to the full cost of education, although some impose lifetime limits. While federal loans come with low fixed interest rates and protections like deferment and forbearance, private student loans for an MBA program may also make sense.
Whether you opt to max out your federal loan options or go with a private lender, here are the most important factors you should consider:. Student loan interest rates are incredibly low right now due to the coronavirus' economic impact. If you're looking to take out a new MBA loan or refinance an existing private loan, now is a good time. With that said, lenders have also made adjustments to their lending practices given this unprecedented drop in rates. It could be harder to qualify for a loan if you have poor credit, meaning you may have to enlist a co-signer if you're looking for an affordable MBA loan.
One of President Biden's first actions as president was to extend the period of administrative forbearance for federal student loan borrowers. Most federal loans are temporarily interest-free, with no payments required, through Jan. Biden has also suggested that he is interested in exploring some form of student loan forgiveness.
However, if this were to happen, it would likely only affect federal student loans — borrowers' private student loan balances would not be reduced. Overview: Federal grad PLUS loans come with fixed interest rates, and you can borrow up to the amount of your college costs minus other aid you receive.
You can also defer payment on these loans until six months after you leave school, graduate or drop to below half-time enrollment. Perks: Federal student loans come with the option to pursue deferment, forbearance and income-driven repayment plans, making them one of the most flexible options on the market. Many private lenders even recommend starting your search with federal loans due to these additional protections. What to watch out for: Unlike other federal student loans, grad PLUS loans do run a credit check during the application process, although there is no minimum credit score requirement.
Also note that these loans come with an upfront loan fee that is deducted from each loan disbursement. Overview: If you're attending an eligible program and have good credit, you may be able to get a CommonBond MBA loan without a co-signer.
While CommonBond doesn't disclose a minimum credit score for its private student loan, its refinancing loans have a minimum credit score requirement of , which indicates that the company prioritizes good-credit borrowers. CommonBond's MBA loans have two repayment terms — 10 or 15 years — and they come with competitive interest rates. Perks: CommonBond MBA loans have forbearance options, meaning you can pause your payments during times of financial hardship. CommonBond's forbearance program can span up to 24 months.
What to watch out for: CommonBond charges an origination fee of 2 percent. In contrast, many online lenders have waived all fees, including origination fees. You can also choose among diverse repayment options that include full principal and interest payments, interest-only payments while you're in school, a flat payment while you're in school or deferred payments until you graduate.
Perks: College Ave has some of the lowest APRs on the market for consumers with good or excellent credit, and you can qualify for a 0. Overview: SoFi's graduate school loans let you borrow up to the cost of attendance for your MBA program, and you can choose from highly competitive fixed or variable interest rates.
Other options include making partial payments while you finish your MBA or moving forward with full principal and interest payments during your program. Perks: SoFi easily has some of the most competitive rates in the business, and you can borrow up to the total cost of attendance at school. SoFi also makes it easy to apply for your MBA student loans online, and there are no origination fees. If you need to finance only a small portion of your education expenses, it's likely not the right lender for you.
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