Should You Refinance Your MBA Student Loan?
This question is about MBA student loans.
Refinancing an MBA loan can lower interest rates but comes with trade-offs, especially if you have federal loans. However, federal student loans offer protections like income-driven repayment plans and student loan forgiveness, which private refinancing eliminates.
Refinancing is often best for high-income borrowers with private loans or those who don’t need federal benefits.
With that in mind, here's what to know.
Types Of Student Loans For Business School
Earning an MBA often comes with a significant financial commitment, and many students take out loans to cover tuition, living expenses, and other costs. The most common loans for business school fall into two categories:
Federal Loans
- Direct Unsubsidized Loans: Limited to $20,500 per year, with fixed interest rates set annually by the government.
- Graduate PLUS Loans: No longer available after July 2026.
Private Loans
- Offered by banks, credit unions, and online lenders.
- Interest rates depend on credit score, income, and loan term—some borrowers qualify for lower rates than federal loans.
- No federal protections, such as income-driven repayment or forgiveness programs.
For many business school graduates, these loans become a major financial burden after graduation. Refinancing can be a way to cut costs—but it’s not always the right move.
When Does It Make Sense To Refinance An MBA Loan?
Refinancing means replacing one or more existing student loans with a new private loan, ideally with a lower interest rate. But timing matters, and so does the type of loan you have.
1. You Have High-Interest Private Loans
If you funded your MBA with private loans, refinancing is often a good idea—especially if you have a good credit score and stable income. Since private loans don’t come with federal benefits, you’re not losing protections by refinancing.
2. Your Federal Loan Interest Rates Are Too High
- Graduate Loans could have interest rates that are often 7% or higher.
- If you qualify for a fixed-rate private loan with an interest rate 3%–4% lower, refinancing could mean significant savings over the life of the loan.
That said, federal loans offer protections that private lenders don’t, such as Public Service Loan Forgiveness (PSLF) and income-driven repayment (IDR) plans. If you think you might need these, refinancing may not be the right move.
However, many business school graduates don't go into careers that are PSLF-eligible.
3. You Have a Strong Income and Job Stability
Refinancing works best for borrowers who can afford consistent, high monthly payments without relying on IDR or forbearance options. Business school graduates who secure high-paying jobs in consulting, finance, or tech are often good candidates.
For example, a borrower with a $100,000 loan at 7.5% interest would pay $1,187 per month on a 10-year repayment plan. Refinancing to a 5% fixed-rate loan could lower payments to $1,061 per month, saving nearly $15,000 in interest over time.
Pros And Cons of Refinancing MBA Student Loans
As always, there are pros and cons to refinancing MBA student loans.
Pros | Cons | ||
|---|---|---|---|
Lower interest rates | Loss of income-driven repayment plans | ||
No origination fees | Loss of potential for student loan forgiveness | ||
Could save money over the life of the loan | Credit and income requirements | ||
Refinancing Options For MBA Borrowers
If student loan refinancing makes sense, it’s important to shop around for the best deal. Here are some lenders that offer competitive rates for business school graduates:
Student Choice Student Loans
Student Choice is a platform that connects student loan borrowers with credit unions that offer student loan refinance loans. They work with a network of 225+ credit unions, and as a result, they can offer some of the lowest student loan rates on the market.
Student Choice offers loans up to $250,000, with the potential for very low APRs. When you start the process on their website, they'll take your application and "shop" it to their network of credit unions, who will then make you a customized loan offer.
The result for you, as the borrower, is the potential for very low rates.
ELFI
ELFI is one of the best lenders out there and has been known for student loan refinancing for over 20 years.
The ELFI loan minimum is $10,000 for refinancers, with the maximum being your outstanding loan balance. This can be a huge win for borrowers with high student loan debt, especially doctors.
ELFI doesn’t have specific credit minimums posted, but they do require borrowers to be creditworthy (or have a creditworthy cosigner). One of the few downsides of ELFI, however, is that it's one of the few lenders on this list that does not offer a cosigner release program.
ELFI is offering an awesome bonus to our readers:
- A $1,100 bonus when you refinance at least $100,000 in student loans!
- A $550 bonus when you refinance less than $100,000 but at least $50,000 in student loans!
There are many other lenders that don't necessarily specialize in MBA loans, but are great places to check out for refinancing. Check out our full list of Refinancing Lenders here.
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Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.