Direct Unsubsidized Loan
Federal · U.S. Department of Education
- 8.07%
- Fixed rate, 2026-27
- 1.057%
- Loan fee
- $20,500
- A year at most
- $100,000
- Total for grad school
No credit check. Apply with the FAFSA.
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MBA student loansFederal and private, with a calculator.
New MBA students can borrow up to $20,500 a year and $100,000 in total in federal Direct Unsubsidized Loans, at a fixed 8.07% with a 1.057% fee for loans first paid out from July 1, 2026, to June 30, 2027. Grad PLUS loans closed to new borrowers on July 1, 2026, so the rest of an MBA's cost comes from savings, scholarships, your employer or private lenders, whose MBA loans run from 2.89% to 16.49% APR at SoFi and College Ave.
8.07%federal rate, 2026-27
1.057%federal loan fee
$20.5kfederal limit a year
$100kfederal limit in total
What an MBA loan costs over 10 years
Worked examples at the 8.07% federal rate with its 1.057% fee, next to a 9.67% private loan with no fee.
| Federal, 8.07% | Private, 9.67% | ||||||
|---|---|---|---|---|---|---|---|
| Borrowed | Monthly | Total interest | Fee | Total paid | Monthly | Total interest | Total paid |
| $50,000 | $608.49 | $23,019 | $529 | $73,019 | $651.65 | $28,198 | $78,198 |
| $100,000 | $1,216.98 | $46,037 | $1,057 | $146,037 | $1,303.30 | $56,396 | $156,396 |
| $150,000 | $1,825.47 | $69,056 | $1,586 | $219,056 | $1,954.95 | $84,594 | $234,594 |
A new MBA student can borrow at most $100,000 in federal loans, so the part of a $100,000-plus balance above that has to come from a private lender. The Tiered Standard Plan lets a balance of $50,000 or more run longer than 10 years, which lowers the payment and raises the interest.
Where MBA students can borrow today
Two federal loans and five private lenders, each with numbers from its own site on November 3, 2026. Private rates depend on your credit and change every day.
Grad PLUS Loan
Federal · continuing students only
- 9.07%
- Fixed rate, 2026-27
- 4.228%
- Loan fee
- Cost of attendance
- Limit, minus other aid
- 3 years
- Most you can keep borrowing
Only if you borrowed a Direct Loan for your program before July 1, 2026, and stay enrolled in it.
SoFi
Private · MBA loans
- 2.99%
- Lowest fixed APR
- 14.83%
- Highest fixed APR
- 4.64%
- Lowest variable APR
- None
- Origination fee
Rates with all discounts, as of Nov 3, 2026. Checking your rate is a soft credit check.
College Ave
Private · MBA loans
- 2.89%
- Lowest APR
- 16.49%
- Highest APR
- 0.25%
- Auto-pay discount, included
- Soft
- Credit check to prequalify
Fixed and variable rates, valid as of Nov 2, 2026.
Earnest
Private · graduate loans
- 1.99%
- Lowest APR, with a cosigner
- None
- Origination fee
- 9 months
- Grace period
- 0.25%
- Auto Pay discount
The lowest rate needs a cosigner, the Auto Pay and Loyalty discounts and the shortest term. Page updated Oct 14, 2026.
Prodigy Finance
International · no cosigner
- 10.90%
- Lowest variable rate
- 13.48%
- Example APR
- 4.2%
- Administration fee
- $500
- Processing fee
Waitlist open for the Fall 2027 intake. Read Nov 3, 2026.
MPOWER Financing
International · no cosigner
- 10.89%
- Lowest fixed APR
- $100,000
- Most you can borrow
- 0.25%
- Auto-pay discount, included
- Waitlist
- No new 2026 loans
No cosigner or collateral. New 2026 loans are paused at capacity. Read Nov 3, 2026.
Federal loan rules for new MBA students
For loans first paid out on or after July 1, 2026. From studentaid.gov, read November 3, 2026.
- $20,500
- A year in Direct Unsubsidized Loans; less part time or if your school sets a lower limit
- $100,000
- In total for graduate school; college loans do not count toward it
- $257,500
- Lifetime federal limit, college and any earlier Grad PLUS included
- 8.07%
- Fixed rate for 2026-27, with a 1.057% loan fee
- 9.07%
- Grad PLUS, with a 4.228% fee: only for students already in their program, closed to new borrowers
- $50k / $200k
- Professional degree limits a year and in total; an MBA is a graduate degree, not one of them
Repayment: any new loan puts all your Direct Loans on the Tiered Standard Plan or RAP
- 10 yearsOwe under $25,000
- 15 years$25,000 to $49,999
- 20 years$50,000 to $99,999
- 25 years$100,000 or more
- 1% to 10%RAP: of your adjusted gross income a year, paid monthly, minus $50 a month per dependent, never under $10 a month; what is left after 30 years of qualifying payments can be forgiven
Sources
Every number on this page comes from these pages, read on .
- Interest Rates and Fees for Federal Student Loans read November 3, 2026
- Direct Subsidized and Direct Unsubsidized Loans read November 3, 2026
- Grad PLUS Loans read November 3, 2026
- One Big Beautiful Bill Act Updates (page updated Oct 30, 2026) read November 3, 2026
- One Big Beautiful Bill Act: Important Definitions read November 3, 2026
- Federal Student Loan Repayment Plans read November 3, 2026
- Income-Driven Repayment Plans read November 3, 2026
- Eligibility for Non-U.S. Citizens read November 3, 2026
- SoFi: rates read November 3, 2026
- College Ave: rates read November 3, 2026
- Earnest: rates read November 3, 2026
- Prodigy Finance: rates read November 3, 2026
- MPOWER Financing: rates read November 3, 2026
MBA student loan questions
Answers from studentaid.gov and each lender's own site, read November 3, 2026.
How much can I borrow in federal loans for an MBA?
A new MBA student can borrow up to $20,500 a year and $100,000 in total for graduate school in federal Direct Unsubsidized Loans, for loans first paid out on or after July 1, 2026. Your lifetime limit for subsidized, unsubsidized and Grad PLUS loans, college included, is $257,500. Your school can set a lower limit for your program.
Can I still get a Grad PLUS loan for business school?
Not as a new student. Since July 1, 2026, only students who were enrolled on June 30, 2026, had already borrowed a Direct Loan for that program, and stay enrolled in it without a break can keep borrowing Grad PLUS, for up to three more academic years.
What is the federal student loan interest rate for 2026-27?
Direct Unsubsidized Loans for graduate students first paid out from July 1, 2026, to June 30, 2027, carry a fixed 8.07% rate and a 1.057% loan fee. Grad PLUS loans carry 9.07% and a 4.228% fee. The rate stays the same for the life of the loan.
Is an MBA a professional degree for federal loan limits?
No. The Department of Education's list of professional degrees covers fields such as law, medicine, dentistry and pharmacy, and does not include business. So an MBA gets the graduate limits of $20,500 a year and $100,000 in total, not the professional limits of $50,000 and $200,000. Court orders changed the list in 2026, so confirm with your school's financial aid office.
Which repayment plans apply to new MBA loans?
If any of your loans was first paid out on or after July 1, 2026, you repay all your Direct Loans under the Tiered Standard Plan or the Repayment Assistance Plan (RAP). Tiered Standard spreads fixed payments over 10 to 25 years, by how much you owe. RAP charges 1% to 10% of your adjusted gross income, minus $50 a month for each dependent, with at least $10 a month; what is left after 30 years of qualifying payments can be forgiven.
Is a federal or a private loan cheaper for an MBA?
It depends on your credit. The federal loan costs 8.07% plus a 1.057% fee for everyone and comes with income-based repayment. SoFi and College Ave quote MBA rates from 2.89% to 16.49% APR, so a borrower with strong credit or a strong cosigner can pay less, and others pay more. Put both rates into the calculator on this page to compare the total cost.
Can international students get MBA loans?
Federal loans are only for U.S. citizens and eligible noncitizens, such as permanent residents; students on F-1 or J-1 visas cannot get them. Prodigy Finance and MPOWER Financing lend to international students with no cosigner or collateral; both run waitlists in November 2026.
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