How to Qualify for an MBA Loan

An MBA loan can provide the assistance needed for a qualified individual to attend graduate school full-time. Most MBA students will be leaving the workforce to attend school, and receiving a loan large enough to compensate for the lost salary as well as pay for the degree is essential. Qualifying for an MBA loan is not unlike qualifying for other large installment loans such as mortgages or car loans. Prepare your applications diligently and show you are a good candidate, and you should receive the financing you are looking for. 

Determining How Much You Need

The first step in seeking any loan is determining how much you need. Instead of just blindly qualifying for funds, you should know the precise amount recommended in order to get through school without too much financial stress. Aside from tuition, books and other fees, the school you are attending should provide you with living expense estimates. These estimates only cover the basics such as shelter and limited dining. If you are looking to maintain the same budget you were able to afford when you were working, consider saving funds or working part-time in order to enjoy the added expenses. Putting your entertainment budget on student loans will dig you more debt than you will want upon graduating. 

Preparing an Application

Once you know how much you will be applying for, preparing an application for an MBA loan is very similar to any other. The student loan lender will be considering your credit score, financial history and other factors when deciding whether or not to accept your application. A loan application is not unlike a job application. You should fill it out with care, ensuring your application is neat, organized, and not lacking any information. If you are required to provide references or employer statements, ensure these are done in their entirety. 

Appealing to the Lender

Not all applications will be treated equally in the eyes of the lender. In order to get the lowest interest rate available, you should appeal to the lender by showing you are a good candidate to repay the loan. If you have an employer who is giving you this time off but will hire you upon graduation, providing this information to the lender will help secure a lower interest rate. Similarly, providing information on any anticipated salary you will be able to bring in while attending school can be included. MBA students often work on breaks and take prestigious internships over the summer. If you are planning on serving as a graduate teacher's assistant or receiving any other assistance from the school, this should also be included.

Negotiating Terms

Many borrowers forget they can shop around for loans and negotiate positive terms. One of the key items to seek in a student loan is the potential for loan deferment. This will allow you to put off paying the high monthly repayment fees until you have secured an income. If you are going to school in a difficult job market, it is essential to secure deferment options. Without deferment, you may find yourself in over your head with student loan payments the day you graduate with your MBA.



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