MBA Grads Averaged $77K in Student Debt — Here Are 7 Ways to Borrow Less
New federal rules effective July 1, 2026 eliminate Grad PLUS Loans for new MBA borrowers and cap lifetime graduate federal borrowing at $100,000 — making scholarships, employer tuition benefits, and part-time enrollment more critical than ever.
The average MBA graduate carried $76,996 in student loan debt in 2025, according to the Education Data Initiative — and a major federal rule change makes minimizing that number more urgent. Starting July 1, 2026, new graduate borrowers lost access to Grad PLUS Loans and now face a $100,000 lifetime federal borrowing cap, down from the previous unlimited Grad PLUS access, meaning you'll hit a ceiling faster than students who enrolled before you. The smart funding sequence: exhaust grants and scholarships first (Columbia Business School awards $10,000–$30,000; many outside organizations offer additional awards), then check whether your employer offers tuition reimbursement before you touch any loans. Federal Direct Unsubsidized Loans still allow up to $20,500 annually at fixed rates with income-driven repayment options — borrow those before turning to private loans, which should be a last resort. If you're considering an MBA, map out your full funding stack before you accept an offer, because the borrowing rules that applied to last year's students no longer apply to you.
This issue draws on reporting and data from Student Loan Planner.