Best MBA Loans of 2021

[ad_1]

Going to business graduate school can be expensive – the top schools can charge in the six figures – so it’s important to take steps early to determine how MBA loans can help you finance your education.

The Best MBA Student Loan Companies in 2021

College Ave

3.24% to 12.99% with autopay Fixed APR
Cost of attendance, minus aid Max. Loan Amount
Mid 600s Min. Credit Score

Earnest

3.34% to 12.78% with autopay* Fixed APR
No maximum Max. Loan Amount
650 Min. Credit Score

Ascent Funding

3.27% – 12.16% with autopay Fixed APR
$200,000 Max. Loan Amount
540 Min. Credit Score

U-fi

3.59% to 12.37% Fixed APR
$500,000 Max. Loan Amount
680 Min. Credit Score

Sallie Mae

3.50% to 12.60% with autopay Fixed APR
Cost of attendance, minus aid Max. Loan Amount
Mid 600s Min. Credit Score

SoFi

3.49% to 10.66% with autopay Fixed APR
Cost of attendance, minus aid Max. Loan Amount
Not disclosed Min. Credit Score

Citizens Bank

4.18% to 10.95% Fixed APR
$150,000 Max. Loan Amount
Not disclosed Min. Credit Score

Discover

4.24% to 11.99% Fixed APR
No maximum Max. Loan Amount
Not disclosed Min. Credit Score

CommonBond

3.74% to 10.74% with autopay Fixed APR
$500,000 Max. Loan Amount
Not disclosed Min. Credit Score

Prodigy Finance

Not available Fixed APR
Not disclosed Max. Loan Amount
Not disclosed Min. Credit Score

Find the Best Student Loans for You

Best for instant approval

College Ave exclusively offers student loans. Founded in 2014 based in Wilmington, Delaware, College Ave offers undergraduate, graduate parent loans for students enrolled at schools affiliated with College Ave in all 50 states the District of Columbia. College Ave’s advantage is speed, with applications that take a few minutes to complete instant decisions.

Before You Apply

  • Loan types: Undergraduate, Graduate, Parent Loan, Refinance, MBA, Law School, Dental School, Medical School, International Student Loan.
  • Minimum FICO credit score: Not disclosed.
  • Co-signer required: Yes.
  • Better Business Bureau rating: A+.

Best Features

  • Rapid application approval process.

  • Career loan programs with a completion incentive available.

  • College Ave Student Loans have no origination fees.

See full profile

Best for fair credit

Earnest is an online lender offering private student loans to current college graduate students student loan refinancing to graduates. The company was founded in 2013. Borrowers can choose their loan terms to fund up to the full cost of their education.

Before You Apply

  • Loan types: Undergraduate, Graduate, Parent Loans, Refinance, MBA, Law School, Medical School.
  • Minimum FICO credit score: 650.
  • Co-signer required: No.
  • Better Business Bureau rating: A.

Best Features

  • There are no origination, application or late fees.

  • You can choose your monthly payment loan term length.

  • You can use a co-signer on undergraduate or graduate student loans, student loan refinancing is available.

See full profile

Best for customer service

Education Loan Finance, also known as ELFI, is a student loan refinancing program offered by SouthEast Bank. Options are available in all 50 states to refinance private federal student loans, including undergraduate, graduate, parent MBA loans, as well as loans for law, dental medical school.

Before You Apply

  • Loan types: Undergraduate, Graduate, Parent Loan, Refinance, Medical School, Dental School, MBA, Law School.
  • Minimum FICO credit score: Not disclosed.
  • Co-signer required: No.
  • Better Business Bureau rating: A-.

Best Features

  • There’s no maximum loan amount.

  • All types of student loans are eligible for refinancing.

  • Borrowers with up to a 50% debt-to-income ratio may be approved.

See full profile

Best for bad credit

Ascent Funding is an online lender offering undergraduate graduate student loans at more than 2,200 eligible schools nationwide. U.S. citizens permanent residents can apply for an Ascent loan as a solo borrower or with a creditworthy co-signer, as can those with Deferred Action for Childhood Arrivals status – aka “Dreamers.” Other applicants must have a co-signer who is creditworthy a U.S. citizen or permanent resident. Ascent Funding is based in San Diego.

Before You Apply

  • Loan types: Undergraduate, Graduate, MBA, Law School, Dental, Medical, International Student Loan.
  • Minimum FICO credit score: 540.
  • Co-signer accepted: No.
  • Better Business Bureau rating: A+.

Best Features

  • Borrowers can receive a 1% cash back graduation reward when they meet certain terms conditions.

  • Undergraduate juniors seniors may qualify for Ascent Funding’s Non-Cosigned Outcomes-Based Loans depending on their major, cost of attendance, graduation date other factors. These loans are eligible for a rate discount of one percentage point with automatic payments.

  • Ascent Funding student loans have no application, origination or disbursement fees.

See full profile

Best for low minimum loan amount

U-fi offers private student loans to borrowers in 49 states. Undergraduate graduate are available. The lender specializes in offering flexible repayment options.

Before You Apply

  • Loan types: Undergraduate, Graduate, MBA, Law School, Health Professions Loans.
  • Minimum FICO credit score: 680.
  • Co-signer required: No.
  • Better Business Bureau rating: A+.

Best Features

  • Borrowers can get up to 15 years to pay off the loan.

  • The lender offers an interest rate discount for automatic payments.

  • While enrolled at least half time, borrowers can make full payments, pay only interest or defer payments.

See full profile

Best for product availability

Sallie Mae is a publicly traded consumer bank that offers private student loans to pay for undergraduate, graduate specialty degrees. The company started in 1973 as a government entity that serviced federal student loans. It went private in 2004 has a range of student loan products. Beyond student loans, Sallie Mae Bank offers savings products credit cards with incentives for using cash back rewards to pay back student loans.

Before You Apply

  • Loan types: Undergraduate, Parent Loan, Graduate, MBA, Medical School, Dental School, Law School.
  • Minimum FICO credit score: Mid 600s.
  • Co-signer required: No.
  • Better Business Bureau rating: A+.

Best Features

  • Student loans completely cover school-certified expenses – tuition, fees, books, housing, meals, travel a laptop.

  • Customer service is 100% U.S.-based.

See full profile

Best for multiple repayment options no fees

SoFi is an online lender founded by Stanford business school students in 2011. Originally focused on student loan refinancing, the company added private student loans in 2019. Its student loans for undergraduates, graduates parents start at $5,000 charge no fees.

Before You Apply

  • Loan types: Undergraduate, Graduate, Parent Loan, MBA, Medical School, Law School, Refinance.
  • Minimum FICO credit score: Not disclosed.
  • Co-signer required: No.
  • Better Business Bureau rating: A+.

Best Features

  • Zero fees: You won’t have to pay origination fees, application fees, late fees or insufficient funds fees.

  • Flexible repayment options: SoFi offers co-signer release options, plus borrowers hit by financial hardship can access programs benefits.

  • Prequalify: Whether seeking undergraduate, graduate or parent loans, you your co-signer can check rates terms before submitting a full loan application without hurting your credit scores.

See full profile

Best for streamlined approval process

Citizens Bank was founded in the 1800s in Rhode Island. Today, it’s one of the largest commercial banks in the U.S., with branches in 12 states in New England, the mid-Atlantic the Midwest. U.S. citizens permanent residents can apply for Citizens Bank student loans, as can non-citizens with creditworthy citizen or permanent resident co-signers.

Before You Apply

  • Loan types: Undergraduate, Graduate, Refinance, Parent Loan, MBA, Medical School, Dental School, Law School, International Student Loan.
  • Minimum FICO credit score: Not disclosed.
  • Co-signer required: No.
  • Better Business Bureau rating: A+.

Best Features

  • Citizens Bank offers multiyear approval loans, meaning that once you get started, you will continue to secure funding for subsequent years in school without needing to go through a credit check every year.

  • Borrowers who sign up for automatic payments can reduce their interest rates by 0.25 percentage points.

  • If you have a qualifying Citizens Bank account, you can earn an additional 0.25 percentage point discount.

  • International students can apply if they have a co-signer who is a U.S. citizen or permanent resident with good credit.

See full profile

Best for no fees

Discover Bank has been operating for more than 100 years, it currently offers private student loans to students attending more than 2,400 colleges universities. Loans as small as $1,000 up to 100% of education costs with fixed or variable rates are available.

Before You Apply

  • Loan types: Undergraduate, Graduate, Parent Loans, Refinance, MBA, Law School, Health Professions, International Student Loan.
  • Minimum FICO credit score: Not disclosed.
  • Co-signer required: No.
  • Better Business Bureau rating: A+.

Best Features

  • Loans as small as $1,000 are available. This can help families bridge the gap between financial aid out-of-pocket college expenses.

  • Co-signers are accepted. Parents or grandparents may choose to co-sign a loan for their student to help them qualify for a lower interest rate.

  • Discover has no origination, application or late fees.

See full profile

Best for forbearance options

Founded in 2011, CommonBond has funded more than $2 billion in student loans. The lender offers undergraduate, graduate, medical, dental Master of Business Administration loans, along with student loan refinancing.

You need a co-signer for undergraduate graduate loans, but not for medical, dental MBA loans. It can take from five days to three weveks for your school to confirm your loan amount enrollment status after CommonBond approves your loan. Fees are generally low, though there is an origination fee for MBA, dental medical loans.

Before You Apply

  • Loan types: Undergraduate, Graduate, Refinance, MBA, Dental School, Medical School.
  • Minimum FICO credit score: Not disclosed.
  • Co-signer required: Yes.
  • Better Business Bureau rating: B+.

Best Features

  • Loans are available from $1,000.

  • Borrowers can defer payments while in school or elect to make up to full payments each month, depending on their loan type.

See full profile

Find the Best Student Loans for You

What Is an MBA Student Loan?

An MBA loan is a student loan designed to help students pay for a Master of Business Administration degree.

These loans typically have higher interest rates than what you’re paying on your undergraduate loans, but they may also provide you with more financing so you can afford the higher costs of graduate school.

What Are the Different Types of MBA Student Loans?

There are a few different types of MBA loans you can get. While some are marketed as such, others may simply be general student loans:

  • Private MBA loans. Some lenders advertise loans specifically to help MBA students pay for their degree. Terms can vary depending on the lender, but you can typically borrow up to the total cost of attendance at your school.
  • Private graduate loans. Most private student loan companies offer general graduate student loans that you can use for any type of graduate degree. Interest rates, repayment terms other features will differ from lender to lender, but you can usually borrow whatever you need to pay your tuition bill other eligible costs.
  • Federal Direct Unsubsidized Loans: These federal loans limit how much you can borrow each year, as well as in total. However, they also offer certain benefits that private lenders don’t provide, such as loan forgiveness programs income-driven repayment plans.
  • Federal Graduate Direct PLUS Loans: There’s no limit on how much you can borrow with these loans, but the interest rate loan fee are higher than what you’d get with a Direct Unsubsidized Loan. You’ll also get access to the same federal loan benefits.

Are MBA Loans Worth It?

Ultimately, the decision whether or not to borrow money to complete your MBA depends on your goals future prospects. Take a look at what you expect to borrow to get through the program compare it with the average starting salary for someone with an MBA in your field.

According to Department of Education data analyzed by the Brookings Institution, the median first-year salary for MBA graduates is $73,868.

Mark Kantrowitz, a student loan expert who has written about student aid policy, suggests using the rule of thumb that your graduate student loan debt should be less than your annual starting salary.

“It’s a rule of thumb for undergraduate student loan debt applies to graduate degrees,” he says, “except you include any outstanding undergraduate debt along with the new debt that you incurred during graduate school.”

The real key is whether you’ll get a job, Kantrowitz adds. If you’re already employed have a secure place to lat your company after you complete your degree, business school may be a no-brainer. But if you’ve previously struggled to gain employment think an MBA might do the trick, your prospects may not be as high.

How to Choose the Best MBA Loan for You

Not all MBA loans are created equal, so it’s important to take your time to shop around compare multiple options before you make a decision. Here are some features to keep in mind as you do your research:

  • Qualifications. Private student loans typically require a credit check when you apply, if your credit isn’t in great shape you have no co-signer, it can be tough to qualify get a favorable interest rate. Direct PLUS Loans also require a credit check, but it’s only to ensure you don’t have any significant negative items on your credit reports. If you want to avoid a credit check altogether, Direct Unsubsidized Loans are the only option.
  • Interest rates. Federal student loan interest rates are standardized, so you know what you’re going to get before you apply. “The government offers some good rates for which you don’t need a co-signer,” says Steve Muszynski, founder CEO of Splash Financial, an online student loan refinance marketplace. “However, you may be able to get a better rate via a private lender.” Just be sure you’re comparing apples to apples. Some private student loan companies offer both variable fixed interest rates – unless you’re planning to pay off the debt quickly, a fixed rate is usually best because it won’t change with market rates.
  • Fees. In addition to the interest rate, you’ll also want to compare fees. In most cases, private lenders don’t charge origination fees, though you may be assessed a charge if you pay late. In contrast, federal student loans include an upfront loan fee, which is deducted from your loan disbursement. Federal loan fees can change from year to year, so check the Federal Student Aid website to get the latest information.
  • Repayment options. With federal student loans, you’ll get a variety of repayment options, including income-driven repayment plans. Private student loans also offer several different repayment schedules, but most of them don’t offer any kind of income-driven repayment plan.
  • Other features. Some MBA loans come with other features that could be appealing for you. For example, if you think you might qualify for a loan forgiveness program or loan repayment assistance program, federal loans may be the way to go. If not, compare the different benefits private student lenders offer to determine which one makes the most sense.

Muszynski says the loan’s interest rate should be at the top of your priority list. After all, even a slightly lower rate could save you hundreds or even thousands of dollars over the life of your loan. But plan to look at each option holistically, especially if the rates are comparable.

How to Apply for an MBA Student Loan

The steps to apply for an MBA loan will vary depending on whether you’re applying for a federal or private loan. With federal loans, here’s what you’ll need to do:

  • Complete submit the Free Application for Federal Student Aid, or FAFSA, in which you’ll share information about yourself your financial situation.
  • Review the financial aid award letter you receive from your school after it processes your FAFSA.
  • Once approved, choose how much you wish to borrow, up to the amount listed in your award letter.

In contrast, if you have private student loans, here are the steps you may need to take:

  • Get prequalified with multiple private lenders, so you can compare interest rates other terms.
  • Choose a lender submit an application through its website, including information about yourself, your creditworthiness your financial situation.
  • Once the lender approves your application, you’ll be able to see the final offer, which you can accept or decline.

How Long Does an MBA Loan Typically Take to Pay Off?

The amount of time it’ll take to pay off your MBA loans will depend on a variety of factors. For example, the standard repayment term for federal student loans is 10 years, but you can stretch that out for up to 30 years through consolidation, says Kantrowitz. Just keep in mind that consolidating your loans will result in a slightly higher interest rate.

You can’t opt for a shorter repayment plan on federal loans, but you can make additional payments to eliminate the debt faster.

With private student loans, repayment terms can range from five to 20 years, depending on the lender what you chose when you applied. If you want a shorter or longer repayment term after the fact, you’ll need to refinance the loans with a new private lender.

If you want to pay off the debt faster without refinancing, you can simply make extra payments until you’ve reached a zero balance.

How Much Do MBA Students Typically Borrow?

However, your debt balance will depend on several things, including which school you attend, which nontuition expenses you need to finance whether you’re working while in school.

“Consider how much debt you’re taking on what your job prospects will be coming out of your MBA program,” says Muszynski. “If you borrow $200,000, will you be able to repay that amount of debt, in what time frame? Running the numbers could be eye-opening.”

Also, keep in mind that there may be other ways to reduce how much you need to borrow, which can pay off in the long run. Check with your school websites like Scholarships.com Fastweb to see if you qualify for grants scholarships, which you don’t have to repay.

View More Best MBA Finance Loans

Best for online service

Prodigy Finance offers postgraduate student loans student loan refinancing for qualified borrowers who are studying abroad.

Before You Apply

  • Loan types: Graduate, MBA, Law School, Medical, International Student Loan.
  • Minimum FICO credit score: Not disclosed.
  • Co-signer required: No.

Best Features

  • No co-signer or collateral is required to apply.

  • Loans are available to students in 150 countries.

  • Borrowers can get discounts on housing phone plans.

See full profile

Advertising Disclosure: Some of the loan offers on this site are from companies
who are advertising clients of U.S. News. Advertising considerations may impact
where offers appear on the site but do not affect any editorial decisions,
such as which loan products we write about how we evaluate them. This site
does not include all loan companies or all loan offers available in the marketplace.

[ad_2]

Source link