Financing Your MBA with Federal Student Loans

Graduate school can be expensive, but help is on the way. Low-cost federal student loans can help you pay for your MBA without tying up other financial assets.

By Karen Lawson
klawson@mba-business-schools.com
MBA Business Schools Columnist

You’re considering how to pay for your MBA degree. The US Department of Education offers low-cost federal loans for undergraduate and graduate students at very competitive rates. Here’s how to get started.

When considering any type of federal, state or private student loans or scholarships, the acronym FAFSA is likely to arise. FAFSA stands for Free Application for Federal Student Aid, and is the application used by schools to determine eligibility for federal financial aid programs. Your school may also use your completed FAFSA to determine eligibility for state and local grants and scholarships. Check with your school’s financial aid office concerning their policies. Although many scholarships are awarded based on financial need, some student loan programs provide funding based on program eligibility. It’s important to make sure that the MBA program you choose is properly accredited and participates in federal financial aid programs. Federal student loan rates vary, but won’t exceed 8.25%. In recent years, repayment rates have fallen below 3% in some cases. Each year, student loan rates are adjusted, but once you graduate, it’s possible to consolidate your federal student loans into one payment at a low fixed rate. The interest rates for student loans are often less than for credit cards or other loans.

The Department of Education has a website at that’s dedicated to filing the FAFSA. There are many websites offering assistance with completing the FAFSA. Please note that the official website is located at http://www.fafsa.ed.gov, and it costs nothing to apply. You’ll want to review FAFSA website for information about completing your FAFSA online. If you need help, the FAFSA website provides a help feature, and you can also contact our school’s financial aid office for assistance. Federal Financial Aid programs can provide a low-cost method of paying for your MBA, and offer flexible repayment and deferment options once you’ve completed your MBA degree.

Karen Lawson is a freelance writer whose interests include topics in post secondary education. She holds BA and MA degrees in English from the University of Nevada, Reno.

Posted on March 26, 2007 at 10:32 AM

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