MBA Student Loans
Offering Graduate Business School Financing
After you have completed your four years of classes in a college or university, continuing your education and acquiring a master's degree can lead to higher knowledge and higher income potential.
Federal Programs
As always, first apply for a federal Stafford graduate loan since they offer lower interest rates and more flexible repayment options. If you are eligible, you can even get a subsidized loan where you will not have to pay interest.
The borrowing limit for the first 4 years of graduate study is capped at $18,500 per year, where $8,500 of at most can be subsidized if you qualify. The maximum you can borrow is $138,000, which includes any loans from undergraduate study. $65,000 is the maximum for subsidized loans.
There is an origination fee of 3% to protect against default and this amount is deducted before your school receives it. Once your school receives the funds, tuition and fees are paid, and the remainder is sent to you from the financial aid department.
Repaying the loan can be done a few ways. The first is paying a fixed amount every pay period. Second, you can opt for a graduated repayment plan where the bill amount increases gradually over time. Third is the income-sensitive plan where you total income is a factor in the amount of your payments.
Private Sources
If you are not applicable for federal funding, or have exhausted the borrowing limit, private organizations have programs for graduate study. Most banks will treat the graduate student loan just as any other student loan, with you and/or your cosigner's credit status.
Other private sources like Sallie Mae have loan programs specific for attaining your MBA. Sallie Mae offers their MBALoans program with some special features. You can apply online and get pre-approval. The MBALoans have the same repayment plans as the federal Stafford Loans.
There is no loan limit if you have a credit worthy cosigner. Of course you can only borrow the amount necessary for education. Without a cosigner, the lifetime loan limit is $175,000.
