⚠ Policy change effective July 1, 2026: Grad PLUS loans eliminated for new borrowers. · Read the law →
Effective July 1, 2026

Your MBA just got $16,310 harder to fund

The MBA isn't classified as "professional" under federal rules, so you're capped at $20,500 a year. The median MBA costs $36,810. At top-50 programs, the gap runs $60K–$95K per year.

Median MBA Program — 2025–26
Cost of Attendance$36,810
New Federal Cap$20,500
Annual Gap−$16,310
2-Year Gap−$32,620
Programs Affected99% of MBA programs
907
MBA Programs Analyzed
99%
Exceed the $20,500 Cap
$16,310
Median Annual Gap
$100,000
Aggregate Limit

Three things every MBA
student needs to know

Under the new law, MBA students get the lowest federal borrowing cap. Three things to plan around.

01 — THE CAP

$20,500/year maximum

The MBA is classified as "graduate," not "professional," so your federal cap is $20,500. The median program costs $36,810, leaving a $16,310 gap per year.

02 — THE WALL

$100,000 aggregate limit

Two years at $20,500 is $41,000 in federal loans. The aggregate limit is $100K, but any undergraduate debt you carry reduces that number.

03 — THE TIMELINE

July 1, 2026 cutoff

Already enrolled? You may get up to 3 years of grandfathering. Starting fall 2026 or later? The caps apply from day one.

Funding gap by school

SchoolAnnual COAFederal CapAnnual Gap
Haas (UC Berkeley)$145,024$20,500−$124,524
Wharton (UPenn)$132,404$20,500−$111,904
Babson$131,490$20,500−$110,990
Columbia Business$130,954$20,500−$110,454
Tuck (Dartmouth)$130,773$20,500−$110,273
Stern (NYU)$127,996$20,500−$107,496
Stanford GSB$127,728$20,500−$107,228
Howard$130,270$20,500−$109,770

Source: The 2026 Graduate Education Funding Crisis: A Data Report. Full methodology →

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