There are many reasons behind the demand for an MBA. An advanced degree in business can be of great benefit for job offers and promotions which is why there is a high rise in the need for MBA Student Loans to support the pursuit.
That’s why people opt for a very year. With the advent of online courses and the popularity of executive (accelerated) MBA programs for professionals, it’s easier than ever to work towards a master’s degree.
But that still can cost a large amount of money. How should you finance your degree? This is where MBA student loans appears.
How much is an MBA?
An MBA is kinda expensive. The Master of Business Administration is a great way to develop your business skills – but it comes at a cost. According to a recent article, the average cost of tuition for a two-year Master of Business Administration program alone can cost you $80,000. And that’s just lessons alone.
If you take into account other expenses such as books, accommodation, and meals, etc., the price could rise to $100,000 to $200,000. And for a full-time program, the opportunity cost of lost wages could be huge.
While the cost can seem too high, the return on investment for achieving an MBA can be astonishing. Lots of graduates can double their salary immediately after graduation.
The degree can pay for itself very quickly with the right program and the right career prospects. Regardless of whether you are considering a part-time Master of Business Administration program or a full-time MBA program, you will likely need student loans as part of your financial support.
How do I pay off my Student Loans?
There is a smart order for your MBA program – and that doesn’t start with student loans. Before you ever start a Master of Business Administration program, you need to consider the ROI (Return on Investment) of your program.
The goal of an advanced degree like a Master of Business Administration to help you advance your career (and salary). In addition to your current job, with an MBA you can also build a stronger network that enables you to get a better job after graduation.
You can follow this list which we have compiled from best to worst to get an idea of how to pay for your MBA program.
- Employer Tuition Assistance Program
- Your own savings
- Scholarships and grants
- Direct PLUS student loans
- Private student loans
Where can I get MBA Student Loans in 2020?
Here is a list of MBA Student Loans available for you
- Credible: Best Overall
- Sallie Mae: Best for Flexible Options
- College Ave: Best for Flexible Repayment Plans
- Citizens Bank: Best from a Major Bank
- CommonBond: Best for Choosing Your Repayment Option
- Discover Student Loans: Best for Good Grades
- Ascent: Best for Undergrads with No Co-Signer
- LendKey: Best Backed by Community Lenders
Credible is at the top of this list due to its unique and helpful function. No direct student lender is credible. Instead, you can apply for Credible Pricing for up to nine lenders at the same time.
This saves you time and possibly money as Credible does the shopping for you.
These lenders include options for undergraduate and graduate loans with interest rates (APR) from 2.84% variable and 4.21% fixed with Autopay.
The term ranges from five to 20 years. If you need a private student loan, you can probably find it at a competitive price in a Credible marketplace.
Sallie Mae offers both student and doctoral student loans with fixed and variable interest rates. Sallie Mae even offers loans for K-12 if you want to send your kids to a private school.
Sallie Mae can offer pretty much any variation of the existing private student loan. Students and parents can borrow, and there are no origination or prepayment fees.
In the case of bachelor loans, the variable interest rates are between 1.50% and 9.66% and the fixed interest loans between 4.74% and 11.85% of the annual interest rate.
As soon as you have made 12 punctual payments, you can apply for a co-signing approval and carry the loans yourself.
College Ave is a full-service student lender with loans for student, graduate, and parent. There are no early withdrawal requests or fees, and it only takes about three minutes to fill out an application and make a decision.
The fixed loans are between 4.39% and 11.98% and the variable interest rates between 1.79% and 10.97%.
College Ave only grants student loans, so they’re pretty good at it. College Ave loans are simple and straightforward. The online-focused lender offers terms of 5 to 15 years.
It offers a co-signer approval option. One thing to note: College Ave does not offer a unified indulgence option. These are checked and approved on a case-by-case basis.
This offers more flexibility, but there are some doubts as to whether you will be admitted if you run into financial difficulties.
Citizens Bank has been around for a long time and offers competitive pricing, low fees, and a wide range of options. Student loans from Citizens Bank are issued under the branding Citizens One and are available to students or parents for terms of 5, 10, and 15 years.
It takes a while to qualify for co-signing – 36 on-time payments, to be precise. The fixed interest rates are between 4.72% and 12.04% and the variable interest rates between 2.76% and 10.13% of the annual interest rate.
As with most student lenders, automatic payments give you a 0.50 percent discount. Citizens do not charge any origination or prepayment fees.
You should never have to pay an additional fee to repay your student loans early, but these types of lenders don’t make it onto the list.
CommonBond is not just a student lender trying to make money. They also do a lot of social good, which happens a lot through partnering with non-profit Pencils of Promise.
CommonBond also offers a business program to offer student loans as employee benefits. They offer four repayment options that start either at school or after graduation.
CommonBond has no application or prepayment fees, interest rates are competitive and no origination fee is charged for co-signed loans.
Loans are available to students, students, and parents. The variable interest rates for these loans are between 3.31% and 9.29% of the annual interest with a payback period of 5 to 15 years.
The fixed interest rates are between 5.45% and 9.74% of the annual interest rate. (All prices listed include a 0.25 percentage point discount you get when you sign up for automatic payments.)
Discover is best known for its role as one of the top four credit card networks in the United States, but nowadays it offers much more than just the option to pay with plastic. Discover has grown and now offers student loans on competitive terms.
The variable interest rates are between 2.80% and 11.37% of the annual interest rate and the fixed interest rates are between 4.74% and 12.74% of the annual interest rate (including an autopay discount of 0.25 percentage points). Loans have a term of 15 or 20 years without flexibility.
There are no registration, origination or delay fees from Discover. In fact, there are no fees at all. Discover doesn’t even charge late fees.
This is a unique and potentially valuable feature for some borrowers. For borrowers with a GPA of 3.0 or better, Discover also offers a cash bonus of 1.0% on every new student loan.
Ascent is not as well-known as some other student loan lenders, but its independent loan does not require a co-signer, making it a great option for upper-class students.
It also offers a co-signed loan. For full-time juniors, seniors, and students, Ascent may be one of the few ways to qualify for personal loans without someone else’s help, and prices are competitive.
Fixed interest rates range between 4.21% and 13.16%, and variable APRs start at 3.16% and increase to 11.90%. (These rates include a 0.25 percentage point discount that comes with automatic payments.)
LendKey funds loans through partnerships with credit unions and community banks. However, all loans are still serviced by LendKey, making the bank or credit union behind the scenes invisible to borrowers. LendKey does not offer parent loans, only students.
It also offers less flexibility for school repayment. However, there are no origination or prepayment fees, and interest rates are fairly competitive.
The fixed interest rates are currently between 4.86% and 11.24% of the annual interest rate and the variable interest rates between 3.10% and 10.17%. These prices include an autopay discount of 0.25 percentage points.
We can say that an MBA can be expensive, but for many, it is worth it. The formula is to make sure you find out how much it is worth.