How to pay for MBA school

1. Understand costs and future earnings

Paying for MBA school starts with understanding the full financial picture — and what you’re likely to get back in the long term.

More than 9 in 10 graduate students say they expect their degree to increase their earning potential. Evaluating both sides of the equation — cost and outcomes — helps you decide whether the investment makes sense for your goals.

Source: How America Pays for Graduate School

How much does it cost to get an MBA?

MBA costs vary widely based on the type of school, program format, and location.

• Public business schools (in-state): $20,000–$40,000
• Public business schools (out-of-state): $40,000–$60,000
• Private business schools: $50,000–$80,000+

Most full-time MBA programs take two years to complete. That means tuition alone may range from $40,000 to $160,000 or more. When you add housing, fees, books, travel, health insurance, and networking costs, total program costs can reach $80,000 to $200,000+ depending on the school and city.

Part-time, executive, and online MBA programs may offer more flexibility — especially if you continue working — but they can still carry significant tuition and program fees.

How to find your full cost of attendance (COA)

Tuition is only part of the total cost of attendance (COA). Be sure to include:

• Housing and transportation
• Books, software, and technology
• Program and networking fees
• Health insurance
• Travel for residencies or recruiting
• Any changes in income if you reduce work hours

Knowing these numbers upfront helps you plan more confidently and avoid surprises later.

Before you commit, compare programs side by side. Use Scout College Search to explore MBA programs, review estimated total costs, and compare outcomes so you can see the full financial picture — not just the tuition.

How much do you make if you have an MBA?

Many students pursue an MBA because of the potential return on investment. Salaries vary by industry, role, and experience, but MBA graduates often move into leadership or management positions.

• Management and strategy roles: $90,000–$150,000+
• Finance and consulting roles: $100,000–$175,000+
• Senior leadership roles (with experience): $150,000+

Your outcome will depend on your background, school, industry, and job market conditions.  When you weigh cost and potential earnings together, it’s easier to determine what level of borrowing makes sense for your career path.

2. Maximize free money 

Free money should always be your first stop. Scholarships, grants, and employer assistance directly reduce how much you need to pay out of pocket or borrow.

Federal aid and the FAFSA^®

The Free Application for Federal Student Aid (FAFSA) isn’t just for undergraduates. Completing it each year is required to access federal student loans and may also be used by schools to award certain grants or scholarships.

Even if you don’t expect need-based aid, filing keeps your options open. Check our FAFSA Guide for step-by-step help.

MBA grants and employer-based funding

Some business schools offer institutional grants or fellowships based on merit, leadership, or financial need. These awards can reduce tuition and may include stipends or networking opportunities.

Employer tuition assistance is another major funding source for MBA students. Many companies offer tuition reimbursement or sponsorship programs — especially for part-time or executive MBAs. In some cases, funding may be tied to continued employment after graduation, so review program terms carefully.

Are there scholarships available for MBA students?

Scholarships are free money you don’t have to repay — and there's no limit to how many you can apply for. Start by exploring resources like scholarships for business majors and graduate student scholarships.

Tools like Scholly Scholarships can help you find opportunities that match your background and goals. For a simple, stress-free start, apply for the $5,000 Grad School No Essay Scholarship and Scholly Easy Apply Scholarships.

Even smaller awards can add up over time and reduce how much you need to borrow.

3. Borrow smart

Even with scholarships, grants, and employer assistance, many MBA students still need graduate student loans  to cover remaining costs. Research shows that borrowing is a common part of paying for grad school — but most students rely heavily on savings and free money to help keep loan balances manageable. The goal is to borrow thoughtfully—so your loans support your future instead of holding you back.

Source: How America Pays for Graduate School

Federal vs. private student loans

Graduate students often start with federal student loans. These loans are issued by the U.S. Department of Education and may offer repayment options private loans don’t, such as income-driven repayment plans. To apply, you need to file the FAFSA. 

Private student loans are offered by banks and lenders. They can help fill funding gaps after you’ve used scholarships, employer assistance, and federal loans. Understanding how both federal and private student loans work can help you build a balanced funding plan.

What federal student loans are available for MBA candidates?

The graduate PLUS loan program is ending on July 1, 2026, but MBA students may qualify for Direct Unsubsidized Loans. These loans don’t require a credit check or cosigner, but interest gets added while you're in school, and you're responsible for all of it.

Know the new borrowing limits
Recent federal loan changes have lowered borrowing maximums for grad students. Starting July 1, 2026, graduate students (including MBA students) will be limited to borrowing up to $20,500 per year ($100,000 lifetime total).

Because many MBA programs cost more than these limits, you may need to plan for a funding gap. To understand what’s changing and how it could affect your plan, review Sallie Mae's guide to federal PLUS loan changes.

Using private graduate student loans to fill the gap

If scholarships, employer funding, and federal loans don’t cover your full cost of attendance, private graduate student loans may help bridge the difference. Some students explore the Sallie Mae^® MBA Student Loan or broader Sallie Mae^® Graduate Student Loans to help pay for remaining grad school costs.

Before you borrow…

• Review your federal aid offer. Look at the breakdown of grants and federal loans, then calculate what you still need after scholarships and employer support.
• Factor in federal loan limits. Understand how annual and lifetime caps affect your total borrowing plan. For details, check out Sallie Mae's guide to PLUS loan changes.
• Think long term. Don't just look at the amount you need today. Consider how your expected post-MBA salary and industry align with how much you plan to borrow. Use a loan calculator to estimate your payments ahead of time.

Borrowing smart isn’t just about getting the loan — it’s about building a plan that supports your goals and future earning potential. For more tools and guidance, see the Sallie Mae Student Loan Guide.

Are there other ways to help pay for an MBA?

In addition to scholarships and loans, you may be able to reduce costs through:

• Employer tuition reimbursement or sponsorship programs
• Military education benefits
• School-based fellowships and leadership awards
• Savings or income from part-time work (for flexible programs)

Using multiple funding sources can help lower how much you need to borrow.

Build a smart plan for your MBA investment

An MBA is an investment in your leadership, your network, and your long-term earning potential. When you understand your full costs, maximize free money and employer support, and borrow with intention, you turn a big decision into a smart strategy. Create a funding plan that supports your ambitions — so you can focus on growing your career, not worrying about how you paid for it.