For MBA applicants, getting admitted is only half the journey. Once the offers roll in, a new—and often more stressful—question emerges: how do you pay for it?
On a recent episode of the Clear Admit MBA Admissions Podcast, Graham Richmond sat down with Chris Abkarian, co-founder of Juno, to unpack the realities of MBA financing. From rising costs and shifting federal policies to smart borrowing strategies, the conversation offers a timely roadmap for applicants navigating this increasingly complex landscape.
The Real Cost of an MBA
Let’s start with the numbers. At top MBA programs, the cost of attendance is now substantial. According to Abkarian, “the average cost of attendance…is right around $120,000 a year.” That figure includes tuition, fees, and living expenses, but even that doesn’t tell the full story. Students should expect additional out-of-pocket costs for travel, clubs, and social activities, often another $8,000 to $12,000 annually. All in, a two-year MBA at a top school can easily cost $250,000.
Despite the headline cost, most MBA students are not paying the full amount. “About 60% of people receive some form of grants or scholarships,” Abkarian explains. This is an important shift in the MBA landscape. Schools are increasingly using scholarships to attract top candidates, meaning the net cost can be significantly lower than advertised. Still, even after scholarships, many students need financing. “Over 50% of people still end up using student loans in some form,” he notes.
A Major Policy Shift: The End of Grad PLUS Loans
One of the biggest changes affecting future MBA students is the elimination of Grad PLUS loans. Historically, U.S. students could rely on federal loans to cover nearly the full cost of attendance. That safety net is going away. “There is no longer going to be access to Grad PLUS loans for MBA students who are starting school after July of 2026,” Abkarian says.
Going forward, Federal borrowing will be capped at only $20,500 per year. “If you need more than that, then you would need to explore private loan options.”
How Much Do Students Actually Borrow?
While the total cost can exceed $250,000, students typically borrow less than that thanks to scholarships and savings. “The average MBA student… has been borrowing right around $74,000 per year,” Abkarian shares. About 60% borrow at least $60,000 annually and about 25% borrow $100,000+ per year. These figures may sound high, but they need to be viewed in the context of post-MBA earning potential.
Private loan terms vary, but Abkarian offers a useful benchmark. “Last year the average interest rate… was about 7.5%.” Typical features include 10-year repayment terms, fixed interest rates and deferred payments until after graduation. Thus, many students don’t begin repayment until 9 months after they graduate. For example, borrowing $100,000 with a ten-year term and a 7.5% fixed interest rate would translate to a $1190 monthly payment.
The Hidden Lever: Refinancing After Graduation
One of the most overlooked strategies in MBA financing is refinancing. Once you graduate from an MBA program and secure a job, “you’re viewed as being a significantly less risky borrower… and so the rates… are a lot lower,” Abkarian explains. In many cases, students can refinance immediately after graduation, sometimes before making their first payment. This can lead to lower interest rates, reduced monthly payments and significant long-term savings. For many borrowers, refinancing is one of the most important steps in managing MBA debt.
International Students: Additional Challenges
International students face a more complex financing landscape. “There are fewer lenders who are willing to provide funding to international students,” Abkarian notes. This often results in higher interest rates and fewer options. However, there is a key workaround: securing a U.S.-based co-signer. “If you can… find a U.S. citizen or permanent resident as a co-signer, then you’re going to suddenly get the same exact rates [as a US MBA student],” he explains. The difference can be dramatic, cutting borrowing costs in half.
Why the MBA Still Delivers Strong ROI
Given the costs involved, it’s natural to question whether an MBA is still worth it. Abkarian’s answer is clear. “I’ve now seen a lot of my friends five years post-graduation and… all of them are doing very well,” he says. He points to strong salary growth, career acceleration and the power of the MBA network. And beyond the financials, there’s an experiential upside that’s harder to quantify, but equally important. “It really is one of the most unique experiences… leading to lifelong connections,” he adds.
Juno’s Approach: Better Rates Through Collective Bargaining
Juno’s model is built on a simple idea: group buying power. By aggregating thousands of MBA students, the company negotiates directly with lenders to secure better terms. “We’ve got 5,000 MBA students… what is the best that you can actually do for this group?” Abkarian explains. Key features of Juno are that it is free to join, there is no obligation to borrow, there are only soft credit checks and there are group-negotiated rates. Students can explore options without commitment, making it a low-risk addition to their financing toolkit.
Final Takeaway: Treat Financing as Your First MBA Lesson
Perhaps the most compelling insight from the discussion is how Abkarian reframes the entire process. “The way that you finance this might be the most expensive single decision you’ve made,” he says. Rather than viewing loans as a burden, he encourages students to approach financing strategically. “Think about how you finance school as one of your first business school lessons. It’s your personal capital stack.” For MBA applicants, that mindset shift may be the most valuable takeaway of all.
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