Types of Financial Aid for Graduate Business Students

In general, the following types of financial aid may be available to you:

• Grants and scholarships
• Loans
• Federal Work Study

You may also be able to find financial assistance from at least two other sources:

• Employer reimbursement
• Tax credits for US citizens

You decide whether to apply for financial aid, and you are also in control of what kind of financial aid you seek. Most apply first for grants and scholarships, as these funding sources represent “free” money and can help reduce what you borrow.

Responsible borrowing and timely repayment of your student loans can help you establish, maintain, and possibly even enhance a positive credit history, something more important than ever in our current economic environment.

There are three main types or sources of student loans from which you may get assistance:

• Federal Loans
• Private Loans
• Campus-Based Loans

From this section, you can also learn more about:

• Student Loan Terminology
• Comparing Federal and Private Loans
• Deferring Previous Education Loans

Consider checking with state agencies as well—some states provide additional assistance. Your school’s Financial Aid Office may be able to help.

As you consider borrowing, please take note of the following:

• 54% of full-time MBAs and 33% of part-time MBAs graduated in 2007 with student loan debts of $45,065 and $35,367, respectively.
• Interest accrues and will be capitalized (added back to principal) on any unsubsidized loans you borrow such as the Unsubsidized Stafford, Grad PLUS, or private loans, and this can substantially increase your total amount due.
• While completely your decision, it is generally wise—but not required—to consider applying for federal loans first, before applying for private loans.