How to Find the Right MBA Loan Lender for You

The right MBA loan lender understands the financial needs of your particular graduate program. This means the lender will know about the cost of the program, the cost of living and the estimated salary you will achieve upon graduation from your program. These factors are important in order for the lender to appropriately quote an MBA loan that is right for your unique circumstances.

Cost of the MBA Program

The primary reason to seek an MBA loan is to cover the expense of attending class and paying for books at a university or local college. There is typically a cost per credit on an MBA program; this cost is on average higher for graduate classes than for undergraduate classes. For this reason, a graduate student loan may be more expensive than an undergraduate loan even if the program is shorter. You will be required to complete a certain number of credits to qualify for your MBA, and you will thus need a loan large enough to accommodate these credits. Your lender should be able to provide this and also know approximately how much your supplemental material, such as books, will cost. Ideally, your lender will have worked with another person who completed your same program in the past. This means it is often best to seek a local lender who is familiar with the college or university program.

Cost of Living

The cost of living is more dependent on the location of your program than on the program itself. MBA programs in large cities are often more costly than those in college towns. The cost of living expense includes rent requirements, remembering that dorms are not usually an option for graduate students. Your lender should also know about factors such as parking expenses, food expenses and travel expenses you may incur while you attend your MBA program. Your future school can usually assist the lender and you by offering advice on annual living expense. Most MBA students have been working, meaning there will be an adjustment between having a salary and having no salary. Meeting your existing financial obligations, such as auto loans an insurance, also comes into play when you are seeking an MBA lender.

Estimated Salary at Graduation

Student loans must be paid within a given period of time after graduation. Sometimes you will have a grace period, meaning you will receive a few months to a year before you have to start repaying your loan. Some loans are structured so you pay smaller monthly payments at the beginning. Other loans have monthly payments dependent on your income. These many options need to be considered and decided on based on the estimated salary you can achieve after your graduation. Your lender should be familiar with the marketability of your particular MBA. The lender should have a general idea of how long it will take someone with your qualifications to find employment, and how much that person will make in salary. If the lender misjudges this, you may be stuck with a huge monthly payment bill you cannot afford the day you accept your diploma. 


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