Quick Summary: With Grad PLUS loans ending for new borrowers in July 2026, MBA students will be limited to $20,500 per year and $100,000 in total federal loans, often not enough to cover two years at a top business school. Private student loans from lenders like Sallie Mae, SoFi, Earnest, College Ave, and Ascent can help fill the gap between federal aid and the full cost of your MBA.
An MBA is one of the highest-return graduate degrees available, but it comes with a price tag to match. The total cost of a top-ranked U.S. business school program can exceed $200,000 when you factor in tuition, fees, and living expenses.
Even mid-tier programs often run well above $100,000 for a two-year degree. Until now, federal Grad PLUS loans covered the gap between Direct Unsubsidized Loans and the full cost of attendance, but that safety net is disappearing.
Starting July 1, 2026, the One Big Beautiful Bill Act eliminates Grad PLUS loans for new borrowers. Because MBA programs are classified as non-professional graduate degrees, they fall under the lower borrowing tier: $20,500 per year and $100,000 in total federal loans.
That is significantly less than the $200,000 cap available to professional programs like law and medicine, making private loans an even more critical part of the MBA funding plan. This guide compares five lenders to help you find the right private loan to bridge the gap.
Why will MBA students need private loans after 2026?
Under the current system, MBA students can borrow up to $20,500 per year in Federal Direct Unsubsidized Loans and then use Grad PLUS loans to cover the remaining cost of attendance. Starting July 1, 2026, Grad PLUS loans will no longer be available to new borrowers.
The new federal limits for non-professional graduate students are $20,500 per year and $100,000 over a lifetime. That $100,000 cap is part of a broader $257,500 universal federal loan limit that includes any undergraduate borrowing. Students who took on significant federal debt during undergrad may hit this ceiling before fully using their graduate allocation.
At many business schools, total two-year costs exceed $150,000, and top-ranked programs can run past $200,000. With only $41,000 in federal loans available over two years, the private loan gap for MBA students can easily reach six figures, making it one of the largest funding shortfalls among any graduate program.
Students who are already enrolled in an MBA program and have existing federal loans may be able to continue borrowing under the old limits for up to three academic years or until graduation, whichever comes first. New students starting in fall 2026 will not have this option.
What should you compare when choosing an MBA loan?
Before borrowing, compare offers from multiple lenders. The APR (annual percentage rate) is the best starting point because it reflects both the interest rate and any fees. Most private student loan lenders do not charge origination fees, but you should confirm this before applying.
Unlike medical or law school borrowers, MBA students do not have residency or clerkship training periods after graduation. That means post-graduation deferment is less of a differentiator. Instead, focus on the grace period (how long after leaving school before full payments begin), repayment term options, and whether the lender offers flexibility features like skipping payments or choosing biweekly payment schedules.
Cosigner requirements and release policies also matter. If you are applying with a cosigner, compare how long it takes to release them from the loan. Some lenders release cosigners after 12 months of on-time payments, while others require you to be at least halfway through your repayment term.
The table below summarizes key features across all five lenders covered in this article.
Lender |
Grace Period |
Repayment Terms |
No-Cosigner Option |
Cosigner Release* |
Sallie Mae |
6 months |
5 to 15 years |
Yes |
After 12 months |
College Ave |
9 months |
5, 8, 10, or 15 years |
Varies |
After half of repayment term |
Earnest |
9 months |
5, 7, 10, 12, or 15 years |
Yes |
None |
SoFi |
6 months |
5, 7, 10, or 15 years |
Yes |
Available |
Ascent |
9 months |
7, 10, 12, or 15 years |
Yes |
Available |
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Sallie Mae MBA Loans
Sallie Mae offers a dedicated MBA loan, separate from its general graduate product. It stands out for its cosigner release timeline of just 12 on-time payments, one of the shortest in the market. Sallie Mae also approves borrowers enrolled less than half-time, which can be relevant for part-time or executive MBA students. The grace period is a standard six months after leaving school.
- Fixed and variable interest rates available, with an autopay rate discount
- 6-month grace period after leaving school
- No origination fees (late fees do apply)
- 5 to 15-year repayment terms
- Can apply with or without a cosigner
- Approves borrowers enrolled less than half-time
- No soft-pull prequalification; applying triggers a hard credit inquiry
College Ave MBA Loans
College Ave offers a dedicated MBA loan with a 9-month grace period before repayment begins, three months longer than the standard offered by many competitors. Students can choose from four repayment term lengths: five, eight, 10, or 15 years. One downside to be aware of: College Ave capitalizes unpaid interest monthly, meaning you will pay interest on interest during any period when you are not covering accrued interest.
- Fixed and variable interest rates available
- 9-month grace period after leaving school
- No origination fees
- Four repayment term options (5, 8, 10, or 15 years)
- Cosigner release available after half of the repayment term has passed
- Apply online; cosigner applies separately
Earnest MBA Loans
Earnest positions itself as a flexible option for MBA students, offering a nine-month grace period after graduation and the ability to skip one payment per year at no cost. The lender does not charge late fees or origination fees, and borrowers can opt for biweekly payments instead of monthly, which can reduce total interest over the life of the loan.
Earnest requires a minimum credit score of 650 and covers up to 100% of the cost of attendance. One notable limitation: Earnest does not offer cosigner release, so your cosigner remains on the loan until it is paid off or refinanced.
- No late fees or origination fees
- 9-month grace period after graduation
- Can apply with or without a cosigner (no cosigner release)
- Skip one payment per year
- Biweekly payment option available
- Partial forbearance option (not just full forbearance)
- Five repayment term options (5, 7, 10, 12, or 15 years)
SoFi MBA Loans
SoFi offers a dedicated MBA loan with up to 100% of the cost of attendance. Borrowers can choose from four in-school repayment options (deferred, interest-only, $25 monthly flat payment, or immediate repayment), each of which may affect the interest rate offered.
SoFi’s grace period for MBA students is six months. SoFi also provides member benefits like financial planning tools and career coaching.
- Fixed and variable interest rates available
- 6-month grace period after leaving school
- No origination fees or late fees
- Repayment terms of 5, 7, 10, or 15 years
- Can apply with or without a cosigner
- Member benefits including financial planning access
Ascent Student Loans
Ascent offers graduate student loans that cover MBA students. The lender is notable for offering no-cosigner loan options for students who may not have a creditworthy cosigner available. MBA students can defer payments for up to nine months after graduation, and Ascent provides flexible in-school repayment choices.
- Fixed and variable rates with no origination fees
- Up to 9 months of deferment after graduation
- No-cosigner options available
- Flexible in-school repayment choices
- 1% cash back graduation reward
How do you apply for private MBA loans?
Start by maxing out your federal loan eligibility. Log in to your account at StudentAid.gov to check your remaining federal borrowing capacity and confirm how much of the $100,000 graduate cap you have left.
Next, prequalify with multiple lenders. Most lenders offer prequalification with a soft credit check, which lets you compare estimated rates and terms without affecting your credit score. Note that Sallie Mae does not offer soft-pull prequalification; applying with them triggers a hard credit inquiry. Always compare the APR rather than just the interest rate, since APR includes fees and gives a more accurate picture of total costs.
Coordinate with your school’s financial aid office before finalizing any loan. They will need to certify your enrollment and borrowing eligibility before the lender disburses funds. Borrow only what you need to cover the gap between federal aid and your actual expenses.
Bottom Line
MBA students face one of the largest private loan gaps of any graduate program under the new federal rules. With only $20,500 per year available in federal loans and a $100,000 lifetime cap, most business school students will need to borrow significantly more from private lenders than their peers in law or medicine.
Exhaust your federal loan options first, then compare private loan offers from multiple lenders, paying close attention to grace periods, repayment terms, and cosigner policies.
Private loans are not a last resort. For most MBA students borrowing after July 2026, they will be a standard and substantial part of the financing plan. Prequalifying with several lenders takes minutes and can save you thousands over the repayment period. And remember, you can always refinance later if rates improve or your financial situation changes after graduation.
Frequently Asked Questions
Federal Direct Unsubsidized Loans for non-professional graduate students are capped at $20,500 per year with a $100,000 lifetime limit under the new rules taking effect July 2026. That means you can borrow a maximum of $41,000 in federal loans over a two-year MBA program. For private loans, most lenders allow borrowing up to 100% of the cost of attendance, which can help cover the significant gap between federal aid and actual program costs.
Federal loans almost always come first. They offer income-driven repayment plans, access to forgiveness programs, standardized deferment and forbearance options, and do not require a credit check or cosigner. Private loans may offer competitive rates for borrowers with strong credit, but they lack these federal protections. Use private loans to fill the gap after you have maximized your federal borrowing.
MBA programs are classified as non-professional graduate degrees under the new federal rules. Professional programs like law (JD) and medicine (MD, DO) qualify for higher limits of $50,000 per year and $200,000 over a lifetime. Non-professional graduate programs, including MBA, are capped at $20,500 per year and $100,000 in total. This classification creates a proportionally larger private loan gap for MBA students.
If you have a strong credit score and stable income, you may be able to refinance your loans after completing your MBA. MBA graduates often see significant income increases, which can help you qualify for better rates. However, if you refinance federal student loans into a private loan, you will permanently lose access to federal benefits like income-driven repayment and forgiveness programs. Weigh the tradeoff carefully based on your career plans.
Yes, most lenders offer loans for part-time MBA programs as long as you are enrolled at an eligible institution. Sallie Mae stands out for approving borrowers enrolled less than half-time. Enrollment requirements vary by lender, so check with each one before applying. Part-time students may also have different cost-of-attendance calculations, which can affect how much you are eligible to borrow.
Yes, several lenders offer no-cosigner options, including Ascent, SoFi, and Earnest. Approval without a cosigner typically requires a strong credit score and may result in a higher interest rate. Applying with a creditworthy cosigner generally improves your chances of approval and may qualify you for a lower rate. If you do use a cosigner, compare release policies carefully, as some lenders (like Earnest) do not offer cosigner release.
