MBA Student Loans
Best Bet Graduate Business School Financing
You’ve moved beyond the undergraduate degree and you’re onto a graduate business school. There is even more reasons to choose your student loans carefully. At this stage of the game your college debt could escalate exponentially. Find out what loans are right and which are wrong for your MBA degree.
Let’s talk about the private MBA Loans that you likely want to know most about.
Sallie Mae extends a variety of specially packaged private loans for MBA grad students. What makes them different from general private student loans? Loans like these package high loan limits, a key feature, and are also common for med and law students, other high dollar educations—they aim to give you greater financial flexibility. Unfortunately with the federal Stafford Loans you meet an aggregate loan limit--$138,500 for non-medical grad students. This means that if your cost of education exceeds this (and you’ve been eligible to receive your maximum allowance) then private loans may be an option.
Always borrow on federal loans first.
Why?
They offer extremely good interest rates and flexible loan repayment terms. Basically if you fail to apply for your federal loans you are losing money, unnecessarily running up more student debt than you may be able to afford.
Federal Loan Programs for MBA Students
Hands down the most popular grad student loans are the Stafford Loans, subsidized and unsubsidized. Remember, subsidized loans are awarded to low-income students and the government pays the interest on the loan during school. Unsubsidized Staffords are available for almost everyone, you’re responsible for the interest from date of disbursal, but you may defer until after graduation.
Exhaust your annual maximum on your Stafford Loan first, and then consider augmenting with a PLUS Loans for Graduates and Professionals. This is a federally sponsored, credit-based loan, but this doesn’t mean you are excluded—borrow with a co-signor, someone you know with good credit. The beauty of the PLUS Loan is its financial flexibility and relative low interest. Borrow the balance of your education costs once you’ve subtracted the other financial aid you’ve been awarded. Fail to file a FAFSA (Free Application for Federal Student Aid) or apply for Stafford Loans you may be ineligible for PLUS Loan financing.
Paying Back Your Loans
The unfortunate drawback with grad school is that it can cost you many thousands of dollars. Most of your financial aid will likely be in loans, federal and private, as well as low cost and expensive. While you have hopes for a lucrative career what happens if your financial situation simply cannot handle the debt? Have you been delinquent on payments? Do you struggle to make ends meet? Do you have multiple student loans? You may be a candidate for a loan consolidation. Take our self-assessment quiz right now and find out if this is an option for you.
Loan Consolidation
The Federal Consolidation Loan is part of the Direct Loan Program and the Federal Family Education Loan Program (FFELP). You can merge your multiple federal loans into one, usually with a much smaller monthly payment.
Have private loans? Then check out the consolidation loan options with your private lender.
The secret to student loan consolidation: don’t wait until you’ve defaulted on student loans to seek financial help. Consolidation loans are nearly as commonplace as standard student loans.
