Private Loans: You Better Shop Around

Interest rates are higher, but there's no shortage of money to borrow to fund your B-school education

If you've hit your $18,500 federal-loan limit and exhausted your scholarship opportunities, your last resort for financing business school is private loans. There's no dearth of lenders who cater to B-school students. According to Sallie Mae, the nation's largest provider of student loans, more than 450 banks, not-for-profit education groups, and schools give money to students with a good credit history. For lenders, B-school students are a top-notch investment. B-schoolers "have a 6% default rate," says Nicole Chestang, executive vice-president and secretary of the Graduate Management Admissions Council (GMAC). "It's the lowest default rate in graduate programs."

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