MBA Students Face An 8.94% Reality. GMAC’s New Financing Deal Is A Sign Of What’s Coming

The Graduate Management Admission Council and private lender Ascent Funding announced a new partnership today (May 19) aimed at helping MBA and specialized business master’s students finance their degrees amid rising pressure on graduate borrowers.

The collaboration connects students in GMAC’s ecosystem with financing products, repayment tools, and career readiness services from Ascent, a San Diego-based company that offers private student loans and other education financing products. The company says its lending model places greater emphasis on projected future earnings rather than relying solely on applicants’ current income or credit history.

The announcement comes as grad students face steep borrowing costs. Federal Direct Unsubsidized loans for graduate students currently carry a 7.94% interest rate, while Grad PLUS loans stand at 8.94%, according to U.S. Department of Education figures. Private graduate loan rates can range from roughly 2.6% to nearly 18%, depending on creditworthiness and loan terms.

FUNDING PRESSURES GROW

GMAC cites its own prospective student research showing that cost and lack of financial aid remain among the biggest barriers preventing candidates from pursuing graduate business education.

“As the path to graduate management education becomes more complex, collaborations like this play an important role in helping candidates navigate both the financial and professional aspects of their journey,” GMAC CEO Joy Jones says in a statement.

Ken Ruggiero, CEO of Ascent, says the partnership is designed to help students access financing based on long-term earning potential rather than traditional underwriting measures alone.

Beginning July 1, 2026, Grad PLUS loans will no longer be available to new borrowers, according to multiple university financial aid offices outlining forthcoming federal lending changes. The shift is expected to push more graduate students toward private lenders and alternative financing sources.

NEW TOOLS FOR MBA STUDENTS

Under the partnership, GMAC-connected students gain access to several Ascent offerings, including autopay interest-rate discounts of up to 1%, a 1% cash-back graduation reward, and access to career readiness and professional development tools. Ascent also says MBA students receive a nine-month post-graduation grace period before repayment begins.

The company has also launched a graduate school funding calculator designed to help students estimate total program costs, evaluate federal borrowing limits, and identify potential funding gaps that may require private financing options.

DON’T MISS GLOBAL GMAT TEST VOLUME FELL 19% IN 2025, GMAC CONFIRMS

© Copyright 2026 Poets & Quants. All rights reserved. This article may not be republished, rewritten or otherwise distributed without written permission. To reprint or license this article or any content from Poets & Quants, please submit your request HERE.