Students can apply for scholarships while they’re in college — this financial aid award isn’t just for incoming freshmen. Getting a scholarship at any point during your college years, whether you’re a sophomore or a senior, can help cover the cost of your education. Not only that, you don’t have to repay scholarships because they are a form of gift aid. Scholarships are essentially free money.
Learn more about how to get scholarships while in college, where to find them, and tips on applying for them.
Benefits of Applying While Already in College
Applying for scholarships while you’re in college can help bridge the gap between your college savings and the cost of your education.
The average cost of college, including tuition, books, supplies, and living expenses, is $38,270 per year, according to the Education Data Initiative. The average cost of tuition alone is $9,750 for in-state students and $27,457 for those out-of-state. Scholarships can help reduce the financial burden.
Not only that, applying for scholarships while you’re already in school could help cover unexpected expenses that pop up during the academic year. For instance, perhaps there are fees for materials needed for some of your classes that you didn’t know about or budget for.
Another perk of applying for scholarships while you’re in school is that you may qualify for more or different types of scholarships than you did as an incoming freshman. Maybe you declared or switched your major in your sophomore year — that could make you eligible for awards in your new area of study. Some scholarships are even specifically for upperclassmen, so you can explore those options as well.
Finding Scholarships for Current College Students
Many organizations and institutions offer scholarships, including merit scholarships, to students already in college. Check out these resources.
Your College or University
Your college financial aid office can often help you find scholarship opportunities. They can typically give you information about local, state, and national scholarships you might qualify for. Additionally, an advisor within your major can guide you to scholarships related to your field of study.
Scholarship Search Engines
Use free online scholarship search tools to discover scholarships tailored to your educational background, extracurricular activities, personal interests, and family history. There are a number of these tools, including Fast Web and College Board. Filter the results by your current year in school to find the ones that fit your criteria.
Associations, Businesses, and Organizations
Some big companies provide scholarships for employees and their children. Reach out to your parents’ employers to find out about any scholarship options they may offer.
You can also find scholarship opportunities through local businesses; libraries; churches; associations like the American Legion, NAACP, and Girl Scouts; or other organizations you are connected to.
There are even nonacademic scholarships you might qualify for, such as those based on talent, like dance or drawing, and sports. Cast a wide net to see what you might be eligible for.
And keep in mind that if you don’t get enough in scholarship funds, you can explore other types of financial aid, including grants and federal and private student loans.
How to Apply for Scholarships While in College
When applying for scholarships while in college you’ll need to balance your coursework with the scholarship application requirements and deadlines. Here’s how to stay organized and proceed.
• Practice due diligence. Make sure you meet the basic eligibility requirements of the scholarship.
• Read the application carefully. Review all the steps to apply. Find out what paperwork is needed, such as transcripts, and gather everything together.
• Supply any special requests. For instance, a scholarship might require you to write an essay or include an example of your creative work.
• Meet all deadlines. Make sure to send in your application before it’s due. Give yourself plenty of time so that you’re not rushing to submit it at the last minute.
How to Improve Your Scholarship Applications
Securing a scholarship takes time, work, and dedication. These tips may boost your chances of scholarship success.
Apply Year-Round
Develop a routine for consistently searching for and submitting scholarship applications throughout the year. For example, set aside an hour or two every Saturday afternoon to work on it. There are many unclaimed scholarships every year, so you may be able to find one of those.
Don’t Be Afraid to Apply Again
If you don’t win a scholarship that seems tailored to you, don’t give up. Reapply next year. Most scholarships allow you to apply multiple times, provided you continue to meet the requirements.
Watch Out for Mistakes
Pay strict attention to scholarship application rules and directions, and follow them closely to improve your chances of success. Re-read your application multiple times to check for typos and errors. Other common mistakes to avoid include failing to stick to the word count, not supplying requested materials, and submitting more references or recommendations than the number requested.
Make a Strong First Impression
Scholarship committees may be reviewing hundreds of submissions, so it’s crucial to make your application as strong as possible. For instance, when an essay is required, start yours in a compelling way that will grab the judges’ attention. Talk about the impact you hope to have once you complete your education.
For instance, if you’re earning your degree in chemistry, you might talk about how you plan to use your education to focus on the environment by helping companies develop more sustainable business practices. This kind of information helps the judges understand your goals and gives them context for how the scholarship funds will be put to good use.
Small Scholarships Can Still Make a Difference
You’ll likely want to apply for scholarships with large awards — and you should — but at the same time, don’t overlook smaller scholarships. Apply to them along with the bigger scholarships. If you can win several smaller awards, they can add up substantially.
Refine Your References
When reviewing scholarship applications, judges may look for what makes each student unique. If a scholarship requires a reference letter, consider it a prime opportunity to let the scholarship committee know who you are and what you can do.
Faculty members like professors can be excellent sources for recommendation letters. If you’ve taken several courses with a certain professor and they can attest to the quality of your work, ask if they would be a scholarship reference for you.
The Takeaway
Applying for scholarships while you’re in college can be a smart strategy to help cover your education costs. There are a variety of scholarships available, and numerous online tools to help you find the ones you may be eligible for.
Regularly searching and applying for scholarships throughout your college years, along with other types of financial aid, could help you get the college funds you need and reduce the amount you have to borrow. And even if you do graduate with student loan debt, keep in mind that it’s possible to refinance student loans for better rates and terms if you qualify for them.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
How many scholarships can a current student get?
In general, students can get any number of scholarships — there is no defined limit. But check your college’s rules regarding scholarships. For instance, some schools may not allow students to combine scholarships awarded by the college itself. And remember that your total financial aid usually can’t be more than your school’s cost of attendance.
What does “stacking scholarships” mean?
Stacking scholarships refers to combining different scholarships to help pay for college expenses. Some schools don’t allow scholarship stacking. Check with the financial aid office to find out about your school’s policy on stacking.
Can you get a scholarship in the middle of the year?
Yes, you can get a scholarship in the middle of the school year. Scholarships are available year-round, so you can generally apply for them at any time as long as you meet the scholarship deadline.
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SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Tuition reciprocity agreements allow students from one state to attend a public college or university in another state for reduced or in-state tuition rates. Tuition reciprocity can be a great option for students who want to cross state lines to attend college but can’t afford expensive out-of-state tuition prices.
Learn how tuition reciprocity works, the states that have reciprocity agreements, and how to qualify.
What Is Tuition Reciprocity?
Tuition reciprocity is an agreement that lets students in participating states attend college or university in other participating states for a discounted tuition or the in-state tuition rate rather than the out-of-state tuition fee.
This can be a significant savings because out-of-state tuition is typically far higher than in-state tuition. In 2023-2024, the average in-state tuition rate at four-year public institutions was $11,260, while the average out-of-state tuition was $29,150 — or 159% more expensive. Tuition reciprocity can be a valuable way to make college more affordable.
With a lower tuition rate, an individual may end up with less student loan debt since theoretically they wouldn’t need to take out as much in federal or private student loans.
How Does Tuition Reciprocity Work?
Tuition reciprocity agreements are offered by states throughout the country, though not every state has them. Generally, states with these agreements border each other or are located in the same geographic region. Students who are residents of one of the participating states and go to school in another participating state may be eligible for these programs, which can make it easier to cover the cost of attendance.
Tuition reciprocity isn’t automatic, however. It depends on factors like the type of school you’re applying to, the degree program you’re interested in, and whether you can qualify for tuition reciprocity through that degree program. For instance, to qualify, you might need to pursue a major that’s not offered by colleges in your home state.
Contact the schools you’re considering to learn more about their in-state tuition information and how their tuition reciprocity process works.
Tuition reciprocity is more common at public institutions than it is at private colleges. While some private schools do have reciprocity agreements, the reduced or discounted tuition rate they offer is typically much less than it is at public colleges.
Which States Have Tuition Reciprocity Agreements?
Many states have tuition reciprocity agreements, and there are networks of these programs in different regions of the country. Here are some of them.
Midwest Student Exchange Program (MSEP)
The Midwest Student Exchange Program offers reduced tuition at more than 70 public colleges and universities for students from the following Midwestern states:
• Indiana
• Kansas
• Minnesota
• Missouri
• Nebraska
• North Dakota
• Ohio
• Wisconsin
Students who are able to take advantage of MSEP save an average of $7,000 a year on tuition.
New England Board of Higher Education (NEBHE) Tuition Break Program
Permanent residents of the states listed below who are enrolled in an eligible degree program at a two- or four-year public college or university in New England may be able to save an average of $8,600 a year in tuition through the New England Board of Higher Education (NEBHE) Tuition Break Program.
• Connecticut
• Maine
• Massachusetts
• New Hampshire
• Rhode Island
• Vermont
Academic Common Market (ACM)
The Academic Common Market of the Southern Regional Education Board (SREB) offers in-state tuition rates at more than 2,200 undergraduate and graduate programs at over 100 public institutions across the southeast. ACM typically saves students more than $14,000 per year.
The participating states are:
• Alabama
• Arkansas
• Delaware
• Florida (only participates at the graduate level)
• Georgia
• Kentucky
• Louisiana
• Maryland
• Mississippi
• Oklahoma
• South Carolina
• Tennessee
• Texas (only participates at the graduate level)
• Virginia
• West Virginia
Regional Contract Program
• Arkansas
• Delaware
• Georgia
• Kentucky
• Louisiana
• Mississippi
• South Carolina
Western Undergraduate Exchange (WUE)
More than 160 public colleges and universities in the states below participate in this program. On average, students save $11,000 a year through WUE.
• Alaska
• Arizona
• California
• Colorado
• Commonwealth of the Northern Mariana Islands
• Guam
• Hawaii
• Idaho
• Montana
• Nevada
• New Mexico
• North Dakota
• Oregon
• South Dakota
• Utah
• Washington
• Wyoming
Western Regional Graduate Program (WRGP)
Those going to grad school at a public university in one of the following states may be able to take advantage of a graduate student reciprocity agreement through the The Western Regional Graduate Program. Students who are eligible for WRGP can save an average of $14,000 a year.
• Alaska
• Arizona
• California
• Colorado
• U.S. Pacific Territories and Freely Associated States
• Hawaii
• Idaho
• Montana
• Nevada
• New Mexico
• North Dakota
• Oregon
• South Dakota
• Utah
• Washington
• Wyoming
Professional Student Exchange Program (PSEP)
Aimed at students pursuing careers in health fields, this program may help them save between $8,900 to $35,700 per year on tuition. The following states and territories participate in PSEP:
By qualifying for tuition reciprocity, you can reap a number of benefits, namely substantial savings on your college education. The advantages of tuition reciprocity include:
• A tuition rate that could be half of what you’d pay as an out-of-state student. Over four years, that may result in tens of thousands of dollars saved.
• The opportunity to pursue an academic degree you might otherwise not be able to afford. Some tuition reciprocity programs can even put graduate school within reach.
• Less college debt to repay. With a significantly lower tuition rate, you likely won’t have to take out as much in student loans to help fill the gap. And once you graduate, you could consider student loan refinancing for your private student loans to potentially save even more money if you can qualify for a lower interest rate or better terms.
Applying for Tuition Reciprocity
To take advantage of a tuition reciprocity program, you’ll need to be a resident of one of the participating states and planning to go to school in another participating state. There may be other eligibility criteria as well, such as living in your state of residence for a certain number of years. Check with the program to see what the specific requirements are.
Next, find out if tuition reciprocity is available at the school(s) you’re interested in. If it is, learn how the process works. The application process may differ from school to school. For instance, you might need to be accepted to a school first and then separately apply for the tuition reciprocity program. Ask your school’s admissions or financial aid office about the details.
The Takeaway
Tuition reciprocity can significantly reduce college costs by giving eligible students access to reduced or in-state tuition rates. Check to see what programs are available in your state or region, what the eligibility criteria are, and if the schools you are interested in participate in the program.
By taking advantage of tuition reciprocity, you may have less student loan debt to repay when you graduate. And there’s the possibility to refinance your student loans in the future for better rates and terms if you choose to, which may also help you save money on your education.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
What states have reciprocity for in-state tuition?
Many states across the country offer tuition reciprocity. Check with your state as well as any school you’re considering to see if they participate in such a program. Public colleges and universities are more likely to offer tuition reciprocity than private schools are.
How do tuition reciprocity agreements work?
Tuition reciprocity agreements allow students to get reduced or in-state tuition rates at public colleges and universities in another state for significant savings. Students who are residents of one of the participating states and go to school in another participating state may be eligible.
What is reciprocity as it relates to tuition?
Tuition reciprocity is an agreement that allows students who live in one participating state to attend a college or university in another participating state for reduced or in-state tuition rates, which are typically substantially lower than out-of-state rates.
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SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Earning your Master of Business Administration (MBA) requires a major investment of time, money, and energy, so it can be wise to choose an accredited program. Having accreditation means that a business school meets rigorous standards for a high-quality education.
Accrediting organizations examine a program’s curricula, faculty, career outcomes, and more, all of which can give you vital intel on the quality, value, and marketability of the degree. Earning accreditation isn’t a one-time event, either — schools must undergo the process on a regular basis to ensure they continue to meet accreditation standards.
Learn more about MBA accreditation so you can pick a program that will set you up for academic and career success.
Understanding MBA Accreditation
Demand for MBA degrees is high, and for good reason: Approximately 40% of the Fortune 1000’s C-suite holds the degree.
There are many MBA programs out there to choose among (one recent count found 579 across the U.S.; other figures go higher still). However, not all of them are accredited. Here’s what it means for an MBA program to have accreditation.
Definition and Purpose
Accreditation means that a program or school has met high standards for educational quality and student success. You might come across institutional accreditation, which means that the entire school is accredited, or programmatic accreditation, which applies solely to the MBA program itself.
More specifically:
• Official accreditation agencies require MBA programs to meet high standards (more on that below). During an accreditation review, an agency will consider the program’s curricula, faculty qualifications, learning and career outcomes, student achievement, and other factors.
• MBA accreditation suggests that a program will provide the training you need to succeed in the business world, as well as appeal to future employers. Plus, an MBA program must be accredited to qualify for federal financial aid, including federal student loans and grants.
This is not to say that you couldn’t get a good education and achieve a high-flying career in business from an unaccredited MBA program. Accreditation, however, adds a layer of confidence about where you might pursue this graduate degree, one that tens of thousands of American students pursue annually.
Accrediting Bodies and Standards
There are a number of accrediting bodies out there, but look for one that’s officially recognized by the U.S. Department of Education (DOE) or the Council for Higher Education Accreditation (CHEA). The DOE maintains a list of agencies here, or check out the CHEA directory.
You might come across both national and regional accrediting agencies, but there’s no distinction between the two since a change in DOE regulations in 2020. Now, MBA schools can apply for accreditation from any of these agencies, regardless of their location.
Accrediting bodies, which are comprised of educational professionals, establish operating standards for schools and programs. They also determine if a school meets those standards. After the review process, the agency will publicly announce its findings by issuing an accreditation.
Benefits of Attending an Accredited MBA Program
Attending an accredited MBA program isn’t necessary, but there are several benefits to doing so.
Quality Assurance and Rigor
Accreditation indicates that an MBA program has a strong curriculum with qualified faculty members. It shows that it consistently aligns with educational standards and will provide rigorous training to its students that prepares them for a career in business.
Employer Recognition and Reputation
Accredited programs also tend to have a better reputation in the eyes of future employers than non-accredited ones, making it easier to get hired following graduation. (That can also help you pay off your student debt, whether federal or private student loans, refinanced or otherwise, when you join the working world.) If you’re already working and hoping to use a tuition reimbursement benefit, your employer may require that you attend an accredited MBA program.
Transferable Credits and Mobility
If you decide to transfer schools, it may be easier to transfer credits from an accredited MBA program than a non-accredited one. Plus, earning your degree from an accredited business program may be necessary if you want to advance your education even further with a doctoral-level degree.
There are several agencies that review and accredit MBA programs specifically. Here are three of the top organizations determining MBA accredited schools. It’s worth noting that some online MBA programs are also accredited.
Association to Advance Collegiate Schools of Business (AACSB)
Founded in 1916, the AACSB is the oldest accreditation organization for business and accounting programs. This nonprofit has a rigorous accreditation process, and schools must undergo review every five years to maintain their accreditation. The AACSB looks for teaching excellence, curriculum development, research quality, and student success, among other standards.
Accreditation Council for Business Schools and Programs (ACBSP)
The ACBSP is an international nonprofit organization that accredits business programs across the globe. Its process takes around three years, and it has accredited business programs at 1,200 member campuses since its formation in 1988. You can check out the ACBSP’s directory to see if your MBA program holds ACBSP accreditation.
International Accreditation Council for Business Education (IACBE)
The IACBE has been accrediting business and accounting programs since 1997. The process takes two to four years, and schools must meet high standards for teaching processes and educational outcomes. You can search the IACBE site to find accredited programs.
Choosing an accredited MBA program can help ensure you receive a high-quality education and make a good impression on potential future employers. Plus, you may not qualify for federal financial aid if you attend a non-accredited school, which means you’d miss out on federal student loans, grants, and work-study. (You can also access private MBA loans; it can be smart to shop around and see what MBA loan rates are from at least a few lenders.)
Research Accreditation Status
You can typically find a school’s accreditation status on its website, but reach out to the school directly if you can’t locate this information. As noted above, some popular MBA accrediting agencies, such as the ACBSP, also maintain a directory of schools for you to reference.
Evaluate Program Curriculum and Faculty
While accreditation is a good sign, make sure to do your own research on an MBA program’s curriculum and faculty. Check out what classes are available, who the faculty are, and any research projects or other opportunities that may help you achieve your goals. You might also speak to current students or recent alumni to learn about their experiences and make sure the MBA is worth it.
Align with Career Goals
For most, an MBA program is only worthwhile if it helps them achieve their career goals. Many students often need MBA loans to undertake their studies. Before making that commitment, consider what your career goals are and how the program can equip you with the skills and experiences to accomplish them. Along with speaking to faculty and administrators at the school, you could also connect with people in your target industry for education and career advice.
The Takeaway
MBA accreditation is a voluntary and comprehensive process that schools may undertake to demonstrate the quality of their offerings and maintain eligibility for federal financial aid. There are several organizations that accredit these programs, meaning that they have met high standards for curriculum, faculty, and student outcomes. Plus, they undergo review every few years to maintain accreditation and meet evolving educational guidelines.
If, during your educational journey, you are looking for ways to refinance student loans, see what SoFi offers.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
Are online MBA programs accredited?
An online MBA program may or may not be accredited. Look for the program’s accreditation status on its website. You can also reach out to the school directly to gather this information.
Do employers prefer accredited or non-accredited MBAs?
Employers generally prefer accredited MBA programs. Accreditation indicates that a program provides rigorous instruction and training and prepares its students for post-graduation success.
How often are MBA programs reviewed for accreditation?
The frequency of accreditation review for MBA programs can vary by accrediting agency. For AACSB, one of the most prestigious accreditors for MBA programs, schools must undergo the review process every five years to maintain their accreditation.
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SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
There are so many upsides to investing in your education — the personal enrichment and possibility of a bright and fruitful future being the most obvious. But, there are also some potential downsides that are hard to ignore, one of the main ones being the debt you may accrue.
If you’re a student loan borrower, you’ve probably noticed that your loans have a language all their own. Getting a grasp on terms like interest rate vs. APR, subsidized vs. unsubsidized loans, and fixed vs. variable interest rates can help you make more informed, confident decisions.
Instead of enrolling in Student Loan Language 101, you can use our quick reference guide to find some answers without information overload. Borrowing money can have long-term financial consequences, so it’s important to fully understand the fees and interest rates that will affect the amount of money you owe.
Here are a few of the most important terms to understand before you take out a student loan:
Common Student Loan Terminology
Academic Year
An academic year is one complete school year at the same school. If you transfer, it is considered two half-years at different schools.
Accrued Interest
Accrued interest is the amount of interest that has accumulated on a loan since your last payment. You can keep student loan accrued interest in check by making your payments on time each month. However, after a period of missed or reduced payments, accrued interest may be “capitalized,” which essentially means you have to pay interest on the interest!
Adjusted Gross Income (AGI)
AGI is an individual’s gross income, less any payroll deductions or adjustments. Income includes things like wages, salary, any interest or dividends you may earn, and any other sources of income. You can find your AGI on your federal income tax returns.
Aggregate Loan Limit
The aggregate loan limit is the maximum amount of federal student loan debt a borrower can have when graduating from school. The aggregate loan limits vary depending on whether you are a dependent or independent student.
Amortization refers to the amount of loan principal and interest you pay off incrementally over your loan term. Each student loan payment is a fixed amount that contributes to both interest and principal. Early in the life of the loan, the majority of each payment goes toward interest. But over time as you pay down your loan balance, the ratio shifts and most of the payment goes toward the principal.
Annual Percentage Rate (APR)
APR is the annual rate that is charged for borrowing, expressed as an annual a percentage. APR is a standardized calculation that allows you to make a more fair comparison of different loans. Consider the difference between interest vs. APR — APR reflects the cost of any fees charged on the loan, in addition to the basic interest rate. Generally speaking, the lower your APR, the less you’ll spend on interest over the life of the loan.
Annual Loan Limit
The yearly borrowing limit set for federal student loans.
Automated Clearing House (ACH)
An electronic funds transfer is sent through the Automated Clearing House system. The ACH is an electronic funds transfer system that helps your loan payment transfer directly from your bank account to your lender or loan servicer each month.
The benefits of ACH are two-fold — not only can automatic payments keep you from forgetting to pay your bill, but many lenders also offer interest rate discounts for enrolling in an ACH program.
Award Letter
An award letter is sent from your school and details the types and amounts of financial aid you are eligible to receive. This will include information on grants, scholarships, federal student loans, and work-study. You will receive an award letter for each year you are in school and apply for financial aid.
Award Year
The academic year that financial aid is applied to.
Borrower
The borrower is the person who took out a loan. In doing so, they agreed to repay the loan.
Campus-Based Aid
Some financial aid programs are administered by specific financial institutions, such as the federal work-study program. Generally, schools receive a certain amount of campus-based aid annually from the federal government. The schools are then able to award these funds to students who demonstrate financial need.
This refers to the cancellation of a borrower’s requirement to repay all or a portion of their student loans. Loan forgiveness and discharge are two other types of loan cancellation.
Capitalization
Capitalization is when unpaid interest is added to the principal value of the student loan. This generally occurs after a period of non-payment such as forbearance. Moving forward, the interest will be calculated based on this new amount.
Capitalized Interest
Accrued interest is added to your loan’s principal balance, typically after a period of non-payment such as forbearance. When the interest is tacked onto your principal balance, your interest is now calculated on that new amount.
Most student loans begin accruing interest as soon as you borrow them. While you are often not responsible for repaying your student loans while you are in school or during a grace period or forbearance, interest will still accrue during these periods. At the end of said period, the interest is then capitalized, or added to the principal of the loan.
When interest is capitalized, it increases your loan’s principal. Since interest is charged as a percent of principal, the more often interest is capitalized, the more total interest you’ll pay. This is a good reason to use forbearance only in emergency situations, and end the forbearance period as quickly as possible.
Cosigner
A cosigner is a third party, such as a parent, who contractually agrees to accept equal responsibility in repaying your loan(s). A student loan cosigner, also known as an endorser, can be valuable if your credit score or financial history are not sufficient enough to allow you to borrow on your own.
With a cosigner, you are still responsible for paying back the loan, but the cosigner must step in if you are unable to make payments. A co-borrower applies for the loan with you and is equally responsible for paying back the loan according to the loan terms on a month-to-month basis
Consolidation (through the Direct Loan Consolidation Program)
Student loan consolidation is the act of combining two or more loans into one loan with a single interest rate and term. The resulting interest rate is a weighted average of the original loan rates — rounded up to the nearest one-eighth of a percentage point.
Only certain federal loans are eligible for the Direct Consolidation Program. Consolidating can make your life simpler with one monthly bill, but it may not actually save you any money. You may be able to reduce your monthly payments by increasing the loan term, but this means you’ll pay more interest over the life of the loan.
Consolidation (through a Private Lender)
Consolidation is the act of combining two or more loans into one single loan with a single interest rate and term. When you consolidate loans with a private lender, you do so through the act of refinancing, so you’re given a new (hopefully lower) interest rate or lower payments with a longer term.
By refinancing, you may be able to lower your monthly payments or shorten your payment term. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)
Cost of attendance is the estimated total cost for attending a college based on the cost of tuition, room and board, books, supplies, transportation, loan fees, and miscellaneous expenses. Schools are required to publish the cost of attendance.
Credit Report
Credit reports detail an individual’s bill payment history, loans, and other financial information. These reports are used by lenders to evaluate your creditworthiness.
Default
Default is failure to repay a loan according to the terms agreed to in the promissory note. Defaulting on your student loans can have serious consequences, such as additional fees, wage garnishment, and a significant negative impact on your credit. It’s always better to talk to your lender about potential hardship repayment options, such as deferment or forbearance, before defaulting on a loan.
Deferment
Deferment is the temporary postponement of loan repayment, during which time you may not be responsible for paying interest that accrues (on certain types of loans). Student loan deferment can be useful if you think you’ll be in a better place to pay your loans at a later date. However, deferment is usually only available for certain federal loans. To potentially cut down on interest, it may be wise to weigh your deferment options.
Delinquency
When you miss a student loan payment, the loan becomes delinquent. The loan will be considered delinquent until a payment is made on the loan. If the loan remains in delinquency for a specified period of time (which varies for federal vs. private student loans), it may enter default.
Direct Loan
The Direct Loan program is administered via the U.S. Department of Education. There are four main types of direct loans including Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.
Direct PLUS Loan
Direct PLUS Loans are types of federal loans that are made to graduate or professional student borrowers or to the parents of undergraduate students. Direct PLUS Loans made to parents may be referred to as Parent PLUS Loans.
Disbursement
When funds for a loan are paid out by the lender.
Discharge
Student loan discharge occurs when you are no longer required to make payments on your loans. Typically, student loan discharge occurs when there are extenuating circumstances, such as the borrower has experienced a total and permanent disability or the school at which you received your loans has closed.
Discretionary Income
Discretionary income is the money remaining after you pay for necessary expenses. An individual’s discretionary income is used to help determine their loan payments on an income-driven repayment plan.
Enrollment Status
Determined by the school you attend, your enrollment status is a reflection of where you stand with the school. It includes full-time, half-time, withdrawn, and graduated.
Expected Family Contribution (EFC)
Now known as the Student Aid Index (SAI), it’s an estimation of the amount of money a student and their family is expected to pay out of pocket toward tuition and other college expenses.
Federal Work-Study
A type of financial aid, students who demonstrate financial aid may qualify for the federal work-study program, where they work part-time to earn funds to help pay for college expenses.
Financial Aid
Financial aid is funds to help pay for college. Financial aid includes grants, scholarships, work-study, and federal student loans.
Financial Aid Package
An overview of the types of financial aid you are eligible to receive for college, financial aid packages provide information on all types of federal financial aid and college-specific aid such as scholarships, grants, work-study, and federal student loans.
Fixed interest rates remain the same for the life of the loan. The interest rate does not fluctuate.
Forbearance
Forbearance is the temporary postponement of loan repayment, during which time interest typically continues to accrue on all types of federal student loans. If your student loan is in forbearance, you can either pay off the interest as it accrues or you can allow the interest to accrue and it will be capitalized at the end of your forbearance.
Use forbearance wisely, because interest that accrues during the forbearance period is typically capitalized, making your loan more expensive. If you can afford to make even small payments during forbearance, it can help keep interest costs down.
You will usually have to apply for student loan forbearance with your loan holder and will sometimes be required to provide documentation proving you meet the criteria for forbearance. For a loan to be eligible for forbearance, there must be some unexpected temporary financial difficulty.
Forgiveness
Loan forgiveness is another situation in which you are no longer responsible for repaying all or a portion of your student loans. Public Service Loan Forgiveness and Teacher Loan Forgiveness are two types of loan forgiveness programs in which your loans are forgiven after meeting specific requirements, such as working in a qualifying job and making qualifying loan payments.
In August 2022, President Biden announced a loan forgiveness plan for borrowers with student loan debt. Under this plan, borrowers earning up to $125,000 (when filing taxes as single) may qualify for up to $10,000 in student loan forgiveness. He also announced that Pell Grant recipients may qualify to have up to $20,000 of their loans forgiven.
Free Application for Federal Student Aid (FAFSA)
This is the application students use to apply for all types of federal student aid, including federal loans, work-study, grants, and scholarships. The FAFSA must be completed for each year a student wishes to apply for financial aid.
The grace period is a period of time after you graduate, leave school, or drop below half-time during which you’re not required to make payments on certain loans. Some loans continue to accumulate interest during the grace period, and that interest is typically capitalized, making your loan more expensive.
Grad PLUS Loans
Another term to refer to a Direct PLUS loan, specifically one borrowed by a graduate or professional student.
Graduate or Professional Student
A student who is pursuing educational opportunities beyond a bachelor’s degree. Graduate and professional programs include master’s and doctoral programs.
Graduated Repayment Plan
A type of repayment plan available for federal student loan borrowers. On this repayment plan, loan payments begin low and increase every two years. This plan may make sense for borrowers who expect their income to increase over time.
Grant
Grants are a type of financial aid that does not need to be repaid. Grants are often awarded based on financial need or merit-based.
Students who are enrolled at least half-time in school are eligible to defer their federal student loans. This type of deferment is generally automatic for federal student loans. Note that unless you have a subsidized student loan, interest will continue to accrue during in-school deferment.
Interest
Interest is the cost of borrowing money. It is money paid to the lender and is calculated as a percentage of the unpaid principal.
Interest Deduction
A tax deduction that allows you to deduct the student loan interest you paid on a qualified student loan for the tax year. Interest paid on both private and federal student loans qualifies for the student loan interest deduction.
Lender
The financial institution that lends funds to an individual borrower.
Loan Period
A loan period is the academic year for which a student loan is requested.
Loan Servicer
A loan servicer is a company your lender may partner with to administer your loan and collect payments. For questions about your student loan payments or administrative details such as account information, you should contact your student loan servicer.
Origination Fee
Some lenders charge an origination fee for processing a loan application, or in lieu of upfront interest. To minimize incremental costs on your loan, look for lenders that offer no or low fees.
Part-Time Enrollment
Students who are enrolled in school less than full-time are generally considered part-time students. The number of credit hours required for part-time enrollment are determined by your school.
Pell Grant
Pell Grant is awarded by the federal government to undergraduate students who demonstrate exceptional financial need.
Perkins Loan
Perkins Loans were a type of federal loan available to undergraduate and graduate students who demonstrated exceptional financial need. The Perkins Loan program ended in 2017.
PLUS Loans
Another way to describe Direct PLUS Loans, PLUS Loans are federal loans available for graduate and professional students or the parents of undergraduate students.
Prepayment
Prepayment is paying off the loan early or making more than the minimum payment. All education loans, including private and federal loans, allow for penalty-free prepayment, which means you can pay more than the monthly minimum or make extra payments without incurring a fee. The faster you pay off your loan, the less you’ll spend on interest.
Prime Rate
Prime rate is the interest rate that commercial banks charge their most creditworthy customers. The basis of the prime rate is the federal funds overnight rate. The federal funds overnight rate is the interest rate that banks use when lending to each other. The prime rate can be used as a benchmark for interest rates on other types of lending.
Principal
Principal is the original loan amount you borrowed. For example, if you take out one $100,000 loan for grad school, that loan’s principal is $100,000.
Private Student Loan
A private student loan is lent by a private financial institution such as a bank, credit union, or online lender. These loans can be used to pay for college and educational expenses, but are not a part of the Federal Direct Loan Program. These loans don’t offer the same borrower protections available to federal student loans — like income-driven repayment plans or deferment options.
Promissory Note
A promissory note is a contract that says you’ll repay a loan under certain agreed-upon terms. This document legally controls your borrowing arrangement, so read it carefully. If you don’t fully understand the agreement, contact your lender before you sign.
Repayment
Repayment is repaying a loan plus interest.
Repayment Period
The agreed upon term in which loan repayment will take place.
Scholarship
A scholarship is a type of financial aid which typically doesn’t need to be repaid. Scholarships can be awarded based on merit.
Secured Overnight Financing Rate (SOFR)
The Secured Overnight Financing Rate is an interest rate benchmark that is commonly used by banks and other lenders to set interest rates for loans. The SOFR is the cost of borrowing money overnight collateralized by Treasury securities. Starting in June 2023, the SOFR will begin replacing the LIBOR as a benchmark interest rate.
Stafford Loans
Stafford loans were a type of federal student loan made under the Federal Family Education Loan Program. Beginning in 2010, all federal student loans were loaned directly through the William D. Ford Federal Direct Loan Program.
Standard Repayment Plan
The Standard Repayment Plan is one of the repayment plans available for federal student loan borrowers. This repayment plan consists of fixed payments made over a 10 year period.
Student Aid Report
After submitting the FAFSA, you will receive a student aid report (SAR). The SAR is a summary of the information you provided when filling out the FAFSA.
Student Loan Refinancing
Student loan refinancing is using a new loan from a private lender to pay off existing student loans. This allows you to secure a new (ideally lower) interest rate or adjust your loan terms.
Subsidized Loan
A Direct Subsidized Loan is a type of federal loan available to undergraduate students where the government covers the interest that accrues while the student is enrolled at least half-time, during the grace period, and other qualifying periods of deferment.
Term
Term is the expected amount of time the loan will be in repayment. Generally speaking, a longer term will mean lower monthly payments but higher interest over the life of the loan, while a shorter term will mean the opposite. Loan terms vary by lender, and if you have a federal loan, you are usually able to select your student loan repayment plan.
Tuition
The cost of classes and instruction.
Undergraduate Student
A college student who is enrolled in a course of study, typically lasting four years, with the goal of receiving a bachelor’s degree.
Unsubsidized Loan
A Direct Unsubsidized Loan is a type of federal loan available to undergraduate or graduate students. The major difference between subsidized vs. unsubsidized loans is that the interest on unsubsidized loans is not paid for by the federal government.
Variable Interest Rate
Unlike a fixed interest rate, a variable interest rate fluctuates over the life of a loan. Changes in interest rates are tied to a prevailing interest rate.
The Takeaway
Understanding key terms is essential for navigating student borrowing. Prioritizing sources of financial aid that don’t need to be repaid like scholarships and grants can be helpful. But these don’t always meet a student’s financial needs.
Federal student loans have low-interest rates and, for the most part, don’t require a credit check. Plus they have borrower protections in place, like income-driven repayment plans and deferment options, that make them the first choice for most students looking to borrow money to pay for college.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
What are common student loan terms?
Common student loan terms include the principal (the original borrowed amount), interest rate (the cost of borrowing), and repayment term (the length of time to repay the loan). Other terms involve grace periods (time before payments start after graduation), deferment, forbearance (temporary relief from payments), and fixed or variable interest rates.
What are the most important loan terms to understand?
It’s important to understand terms associated with borrowing because you’ll be required to repay the loan. Understand the interest rate and any fees associated with the loan.
What does APR mean in relation to student loans?
APR stands for annual percentage rate. It’s a reflection of the interest rate on the loan in addition to any other fees associated with borrowing. APR helps make it easier to compare loans from different lenders.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
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Earning an MBA, or a Masters of Business Administration, degree can increase your salary, teach you specialized skills, and provide you with new career opportunities. But getting your MBA is expensive, with an average cost of $62,600 for a two-year program vs. $59,684 for a master’s degree in general. A degree from a top-tier school can be considerably more, with tuition and living expenses totaling $200,000 for the program.
Just how big of an MBA pay increase you’ll get in return depends on a number of factors, including the school you attend, the field you’re in, and your previous work experience. Here’s what to know about an MBA salary increase and how much you might expect to receive.
Value of an MBA Degree
An MBA degree can make you more marketable to employers, which can in turn help you land a better job and a higher salary, research shows. And while earning your degree can come with a hefty price tag, taking out MBA loans is one option to help you pay for it.
The median starting salary of recent MBA graduates in the U.S. is $120,000, according to the 2024 Corporate Recruiters Survey from the Graduate Management Admission Council (GMAC). That’s significantly more than the $69,320 starting salary of grads with a bachelor’s degree. Knowing how much you might earn could help you determine if an MBA is worth it.
An MBA can also help you advance in your career. The majority of employers in the GMAC survey said that MBA grads typically perform better and move up the ladder faster than other employees. That places them in high demand in the workplace. One-third of employers from across the globe reported that they plan to hire more MBA graduates in 2024 than they did in 2023.
Average Salary Increase with an MBA
Overall, MBA grads reported a median salary increase of 33% after earning their degree, according to the GMAC’s most recent Enrolled Students Report. Full-time MBA students had a 42% increase in salary, while those who worked and studied for their MBA at the same time said their salary increased by 29%.
However, the amount your salary might increase once you have an MBA depends on the field you’re in. Here’s a closer look.
Salary By Industry and Job Function
The following industries tend to pay well for those who have earned an MBA, making them some of the best jobs for MBA graduates.
Finance
Many MBA grads pursue a career in finance, and it can be lucrative. The average salary for an individual with an MBA in finance is $145,257, but the amount can be as much as $195,000, and that’s not counting possible commissions and bonuses.
Technology
Another hot field for those with an MBA is technology, especially as AI becomes more prevalent. The average salary for MBA grads in tech is about $118,000 a year. However, your MBA salary increase could run higher still and may even include a signing bonus.
Consulting
Those who work as consultants and have their MBA average about $83,797 annually, but the base pay can be as much as $117,000. A consultant’s salary may go up dramatically within a few years, especially if they work at a big firm.
Healthcare
Healthcare management is a popular job for MBA graduates. The average earnings are $88,000 per year, although it’s not uncommon for those in healthcare management to bring home a six-figure salary.
Marketing
After graduating with an MBA in marketing, your annual earnings will be approximately $130,721 on average, and they could be as much as $165,000. That’s well above the average marketing salary for those without a degree, which is $81,330.
Business
The salary for a business analyst with an MBA is $104,629 a year, although it can be as much as $128,000.
Accounting
If you earn an MBA in accounting, you could earn an average starting salary of $126,598. Your pay could even be as high as $166,000.
Factors Influencing MBA Salary Potential
In addition to the field you choose to work in, how much you’ll earn after getting your degree is influenced by such things as the MBA program you choose and your previous work history and salary.
These are the three major factors that can affect MBA salary potential.
School Reputation and Rankings
Although it’s likely to be pricier, going to a top-rated school to get your MBA can pay off in multiple ways. These schools tend to have robust networking programs and employer recruitment opportunities. Some colleges may help prospective graduates find internships and jobs. Also, grads from top 10 schools tend to earn more than those who attend other programs.
Before applying to an MBA program, do your research to see where recent alumni have ended up and which companies have recruitment relationships with the school. For instance, certain coveted employers might always attend a particular school’s job fairs. If a university has connections to companies you might be interested in working at, you may want to apply to their MBA program.
Specialization and Concentration
Every MBA program offers different classes, internships, and hands-on opportunities, and it’s important to look for ones tailored to your goals and career path. Choose a program with specialized concentrations in the field you’re most interested in. For instance, some MBA programs specialize in healthcare while others focus on finance.
If you’re currently in a field that you want to pivot out of — moving from marketing to consulting, say — an MBA could help with career change without going back to an entry-level job.
Work Experience and Performance
The more work experience you have, the more likely you are to score a higher salary once you get an MBA. This is especially true if that experience is relevant to the area of study you’re pursuing. Most people going for their MBA have about five years of experience on the job. And some MBA programs require students to have a certain number of years of work experience before they apply.
Your work performance is also a key factor in what you might earn after you obtain your degree. As mentioned above, employers in the GMAC survey found that MBA grads tended to be better performers on the job. High achievers are more likely to command a higher salary.
Maximizing Your MBA Salary Prospects
In addition to choosing the right MBA program, there are other steps you can take to land a good job and a higher salary when you graduate. Here are a few strategies that can help you get ahead.
• Take advantage of networking opportunities. Get to know your fellow classmates and connect with teachers and faculty members. Go to school gatherings, job fairs, and networking events. Find people who are in the field you’re in, and get to know them.Then make a point to stay in touch with the contacts you make. These people can be valuable resources over the course of your career.
• Apply for internships. Many MBA schools offer internship programs, and they typically expect students to take advantage of them if possible. An internship can give you real-world experience and also connect you to key contacts who may be able to help you find a job when the time comes.
• Seek out alumni. Make a list of the companies you’re interested in working for, and then search out any alumni of your school who work there. Ask to meet with them for coffee or an informational interview. Solicit their career advice. If you make a solid connection, they may keep you in mind for future job openings.
Choosing the Right MBA Program
It’s important to find an MBA program that fits your interests and goals. Look for programs that offer concentrations in the areas and fields you want to pursue. Then review the curriculum and the courses offered to make sure they appeal to you.
In addition, learn where graduates of the MBA program have ended up. What companies do they work for and what kinds of jobs do they have? You might even reach out to ask how they felt about the program and if they would recommend it.
Location
Where the school is located is also a prime consideration. If you’re working and going to school at the same time, you’ll need to find a program in your area. You could also explore top online MBA programs if you want to take advantage of a particular school’s offerings when you’re unable to attend it in person. These programs tend to cost $10,000 less than in-person ones, but you may miss out on networking opportunities.
If you’re a full-time student and you have the opportunity to move to attend school, you could choose an MBA program near the area where you hope to work. For instance, if you’d like to be employed in Silicon Valley, a school nearby might be a good choice for you. It may be easier to get an internship there as well as a job after graduation.
Cost
Of course, the cost of an MBA program is likely to be one of the most important factors in your decision. Beyond the tuition, find out the true cost of getting an MBA at any school you’re interested in. This includes living expenses, books, transportation, and so on.
How to Pay for Your MBA
There are a number of ways to pay for your MBA, such as scholarships, grants, and student loans. You may want to consider both federal and private student loans. Federal loans include Federal Direct PLUS loans for graduate students from the Department of Education. The maximum amount you can borrow with these loans is the cost of attendance, which is determined by the school minus any other financial aid you may have, and the loan’s interest rate is fixed.
Private student loans may have fixed or variable rates, and the MBA loan rates you might qualify for depend on your credit history, among other factors. These loans are offered by banks, credit unions, and online lenders. Be aware, though, that with private student loans, you will not have access to the same federal protections and programs you would with federal loans, including income-driven repayment plans. Also, if you refinance federal student loans with a private loan, you could pay more interest over the life of the loan, depending on its rate and term length.
Earning an MBA may help you fulfill your career dreams and earn a higher salary. Research shows that the degree can increase your salary by about 33%, depending on such variables as the school you attend and the field you work in. But getting an MBA can be costly, averaging more than $60,000 for a two-year program, up to $200,000 for top-tier schools. So you’ll want to weigh the pros and cons.
If you decide that earning an MBA makes sense for you, there are ways to help cover the costs and develop a solid budget. You can explore all options, including scholarships, grants, and federal and private student loans, as well as refinancing your existing loans.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
What is the average starting salary with an MBA?
The median starting salary with an MBA is $120,000, according to the Graduate Management Admission Council’s 2024 Corporate Recruiters Survey. That’s far higher than the $69,320 starting salary of graduates with a bachelor’s degree.
Is an online MBA worth the investment?
Whether an online MBA program is worth the investment depends on the program you choose and what you hope to get out of it. Online programs offer greater flexibility and are typically less expensive than in-school programs. According to one estimate, online MBA programs tend to cost about $10,000 less. However, with an online program, you may not have access to all possible networking opportunities or the opportunity to speak with professors face to face. You may also feel less connected to the school and the overall experience.
How long does it take to recoup MBA program costs?
How long it takes to recoup MBA program costs is different for everyone, depending on the price of the program and the salary increase they enjoy after earning their degree. According to the Graduate Management Admission Council, it takes grads of two-year full-time MBA programs about three and a half years of working to recoup the cost. Those who enroll in online MBA programs recoup the cost in about two and a half years of work.
Photo credit: iStock/Xavier Lorenzo
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
