What is an MBA Loan?

An MBA loan is a type of student financing program that is made available for individuals taking up a business course. It can be obtained from either a federal government-funded loans or private lending companies.

MBA Federal Student Loans

An MBA program student can apply for a graduate loan through the federal government financing programs. This type of loan is granted to eligible persons by applying the Federal Perkins Loan, Federal Stafford Loan, or the Graduate PLUS Loan. Perkins and subsidized Stafford loan programs are only granted to applicants with exceptional financial needs. The amount of funds granted depends on what type of loan the student applies. Perkins' recipients can receive up to a maximum amount of $8,000 a year. The fund Stafford borrowers can avail depends on the student's grade level and dependency status, while Graduate PLUS beneficiaries can obtain up to the total cost of attendance minus the amount of student funds availed from other sources.

Private MBA Student Loans

Private student loan lenders are loan providers that an MBA student can turn to if his or her federal student loans are not enough to finance the MBA course he or she is taking. Typically, a loan acquired through private lending finances the total cost of the student's educational expenses. The borrower should be a US citizen or a permanent resident, with a positive credit history and a good track record of past student loans before his or her loan can be approved.

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