If you are planning to start an MBA in the next year or two, you are probably focused on admissions, recruiting, and ROI. What many prospective MBA students have not fully internalized yet is that the financing math of graduate school is about to change in a very real way.

Beginning with the 2026-2027 academic year, federal graduate lending will no longer automatically cover the full cost of most MBA programs. That shift matters even for students with strong resumes, high credit scores, and prior earnings.

The good news is that MBA students are uniquely well positioned to navigate this change, if they plan ahead.

Graduate PLUS loans are being phased out for new borrowers beginning July 1, 2026. Historically, these loans allowed MBA students to borrow up to the full cost of attendance, tuition plus living expenses, with minimal underwriting.

Unlike many other graduate populations, MBA students typically bring established credit histories, prior full-time work experience, higher expected post-graduation income, lower attrition risk, and a faster transition to repayment.

Lenders know this. As a result, MBA students often qualify for better private loan terms than other graduate borrowers, if their profile is prepared correctly. This is not a reason to be complacent. It is a reason to be intentional.

Private loans do not work like federal loans, even for high-quality borrowers. Underwriting matters, credit score, history, and overall debt profile all factor into pricing. Rates vary widely between lenders. Cosigners are optional for many MBAs, but can materially improve pricing. Federal protections like income-driven repayment and PSLF do not apply. Timing also matters, applying too early or too late can cost you real money.

For MBA students, private loans are not inherently bad, but they are a pricing game. Preparation determines whether you get favorable terms or expensive ones.

You do not need to become a finance expert. You just need to avoid common mistakes and position yourself as a low-risk borrower.

Protect your credit score aggressively. One late payment or maxed-out card can move your rate more than you expect, so autopay everything. 

Keep utilization low by aiming to keep balances under 10 to 20 percent of your available credit. 

Avoid unnecessary hard inquiries and do not shop for loans until you are close to actually needing one. 

Be thoughtful about cosigners. Many MBAs qualify without one, but a strong cosigner can still reduce rates, especially if you are pivoting careers or took time off work. 

Do not take on lifestyle debt pre-MBA. Cars, large personal loans, and revolving balances directly affect pricing.

These are boring actions, but they are worth thousands of dollars over the life of your loans.

Before you commit to a school, pull the full cost of attendance for each program. Account for scholarships and employer sponsorship. Identify your expected loan need. Determine whether federal loans or private loans through Juno are your best option.

Scholarships, employer sponsorship, fellowships, and school-specific aid matter more than ever under capped federal lending. Free money compounds just like interest, except in your favor.

Loan structure affects options. Monthly payments influence career flexibility, risk tolerance for startups or entrepreneurship, geographic mobility, and your ability to refinance later. MBA students should be choosing roles based on opportunity and fit, not because a loan payment cornered them.

Juno exists because individual borrowers are bad negotiators and groups are not.

We negotiate private loan rates using collective demand, giving MBA students access to pricing that is typically unavailable on their own. This year to date, Juno graduate members have achieved a median rate reduction of approximately 1.5 percent, with some seeing materially larger improvements depending on profile and timing.

Joining Juno is free. It does not obligate you to borrow. It simply puts you in a stronger position before decisions are locked in.

If you are planning an MBA in the next cycle, the smartest move is to prepare early and let leverage work for you.