How To Pay Off MBA Student Loans

How To Pay Off MBA Student Loans
If you want to pay off MBA student loans or explore student loan forgiveness, the good news is there are several options. Today, 45 student loan borrowers collectively owe more than $1.6 trillion of student loan debt. On average, MBA graduates can owe approximately $70,000 of student loans.

What’s the best way to pay off MBA student loans? Here are three options:

Student loan refinancing

If you want to pay off student loans fast, then student loan refinancing is your best bet. When you refinance student loans, you get a new student loan at a lower interest rate, which helps you save money and pay off debt faster. Your new student loan is then used to pay off your old student loan. With student loan refinancing, you can lower your monthly payment, choose a fixed or variable interest rate and choose a student loan repayment term from 5 to 20 years. The standard student loan repayment term is 10 years. With a shorter repayment term, you could save significantly on interest. With a longer repayment term, you could lower your monthly payments. You can refinance both your college and MBA student loans together. If you already refinanced your college student loans or MBA student loans, or both, you can refinance again so long as you can get a lower interest rate. There are no fees to refinance student loans, and the student loan refinancing process is easy.

Compare The Best Student Loan Refinance Rates For 2020

Lender
APR
Minimum Credit
2.26% – 6.29%
650

Overview

KeyValue
Variable Rates:2.26% – 6.29%
Fixed Rates:2.99% – 6.28%
Minimum Credit Score:650
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000 ($10,000 in CA)

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states
Hardship Deferment:Yes
Co-signer Option:Yes

1.99% – 5.49%
650

Overview

KeyValue
Variable Rates:1.99% – 5.34%
Fixed Rates:2.98% – 5.49%
Minimum Credit Score:650
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5-20 years
Borrower Residency:All States except KY or NV
Hardship Deferment:Yes
Co-signer Option:No
2.39% – 6.01%
680

Overview

KeyValue
Variable Rates:2.39% – 6.01%
Fixed Rates:2.79% – 5.99%
Minimum Credit Score:680
Minimum Income:$35,000
Fees:None
Minimum Loan Amount:$15,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Hardship Deferment:Yes
Co-signer Option:Yes

1.89% – 6.66%

660

Overview

KeyValue
Variable Rates:1.89% – 6.66%
Fixed Rates:2.63% – 6.63%
Minimum Credit Score:660
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5 – 20 years
Borrower Residency:All states
Hardship Deferment:Varies
Co-signer Option:Yes

1.89% – 6.00%
700

Overview

KeyValue
Variable Rates:1.89% – 5.90%
Fixed Rates:2.80% – 6.00%
Minimum Credit Score:700
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Hardship Deferment:Yes
Co-signer Option:Yes

1.95% – 3.85%

660

Overview

KeyValue
Overall Rate:1.95% – 3.85%
Variable Rates:
Fixed Rates:1.95% – 3.85%
Minimum Credit Score:None
Minimum Income:None
Fees:None
Minimum Loan Amount:$25,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15 years
Borrower Residency:Must live near a branch in California; New York City; Boston; Greenwich, Connecticut; Palm Beach, Florida; Portland, Oregon; or Jackson, Wyoming
Hardship Deferment:No
Co-signer Option:Yes
1.97% – 8.77%
680

Overview

KeyValue
Variable Rates:1.97% – 8.54%
Fixed Rates:2.99% – 8.77%
Minimum Credit Score:680
Minimum Income:$24,000
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states, except ME, ND, NV, RI, WV
Hardship Deferment:Yes
Co-signer Option:Yes

Checking Your Rate Doesn’t Affect Your Credit Score
Disclosures: Earnest | ELFI | Laurel Road | LendKey | SoFi | Splash

This student loan refinancing calculator shows you how much money you can save on your MBA student loans when you refinance.

Income-driven repayment

You also could place your federal student loans into an income-driven repayment plan. These are plans based on your discretionary income, family size and state of residency. Typically, you pay 10-20% of your discretionary income. Income-driven repayment plans are not available through the federal government for your private student loans, however. Income-driven repayment plans won’t help you pay off student loans faster. However, if you are struggling to make monthly student loan payments, income-driven repayment plans can help you manage your payments. After 20 years (undergraduate loans) or 25 years (graduate loans), you can get student loan forgiveness on your federal student loans. That said, you will owe income tax on the amount of student loan debt is forgiven. It’s also important to remember that your monthly payment will rise as your income rises. So, an income-driven repayment plan may become more expensive than the standard repayment plan if your income after your MBA rises each year.

Student loan forgiveness

If you work for a public service or non-profit employer, you may consider the Public Service Loan Forgiveness program. While most MBA graduates work in the private sector, you may apply for student loan forgiveness if you work in the public sector. Public service forgiveness requires that you work full-time for a qualified employer and make 120 monthly payments while being enrolled in an income-driven plan like REPAYE. Unlike student loan refinancing, public service loan forgiveness does not help you pay off student loans faster. Rather, public service loan forgiveness takes at least 10 years to complete, and you have to fulfill several requirements. Unlike income-driven repayment plans, the good news is that you won’t owe any income tax on the amount of student loan debt forgiven.

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