10 Schools With MBA Loan Forgiveness — Plus Other Relief Options

How Student Loan Hero Gets Paid

How Student Loan Hero Gets Paid

Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

MBA loan forgiveness programs
Logo

We’ve got your back! Student Loan Hero is a completely free website 100% focused on helping student loan borrowers get the answers they need. Read more

How do we make money? It’s actually pretty simple. If you choose to check out and become a customer of any of the loan providers featured on our site, we get compensated for sending you their way. This helps pay for our amazing staff of writers (many of which are paying back student loans of their own!).

Bottom line: We’re here for you. So please learn all you can, email us with any questions, and feel free to visit or not visit any of the loan providers on our site. Read less

Note that the situation for student loans has changed due to the impact of the coronavirus outbreak and relief efforts from the government, student loan lenders and others. Check out our Student Loan Hero Coronavirus Information Center for additional news and details.

*          *          *

Whether you’ve already graduated with significant debt or are eyeing school sticker prices, the idea of MBA loan forgiveness likely sounds appealing.

Nearly half of MBA students at prestigious universities borrow at least $100,000 to finance their postgraduate education, according to a Bloomberg Business Week survey of 10,000 students from the Class of 2018. The average Harvard MBA graduate, for example, leaves school with about $90,000 in student loans.

Fortunately, there are many MBA loan forgiveness programs, right on campus.

Under most school-offered repayment assistance options, you commit to a period of public service at a qualified agency, nonprofit or government job. You’d be trading a potentially high salary in the private sector for getting MBA loan forgiveness in the often lower-paying public sector.

Here are 10 schools with such robust MBA loan forgiveness programs. (And if yours isn’t on the list, scroll to the end of this post to see other ways to receive relief.)

SchoolAmount of MBA loan forgiveness per year
1. Columbia University$2,000 to $10,000
2. Duke University$15,000
3. Harvard University$5,000 to $20,000
4. New York University$1,194 to $15,000
5. Northwestern UniversityUp to $15,000
6. Stanford UniversityUp to the full amount of your loan payments
7. University of California, BerkeleyUp to the full amount of your loan payments
8. University of Michigan$1,530 to $8,000 (numbers for 2020)
9. University of PennsylvaniaUp to $20,000
10. Yale UniversityUp to 10% of your loan principal

1. Columbia University

Through the Columbia Business School Loan Assistance Program, MBA grads from this Ivy League school who work in the nonprofit or public sector or with a social venture may be eligible for loan assistance.

Graduates can apply for the assistance program within the first five years after graduation. Candidates must work full time (classified as 35 hours or more per week) at a nonprofit or government agency or other social-purpose employer as described in Columbia’s eligibility requirements.

Student loan debtAnnual MBA loan forgiveness
Less than $30,000$2,000
$30,000 to $40,000$3,000
$40,001 to $50,000$4,000
$50,001 to $60,000$5,000
$60,001 to $70,000$6,000
$70,001 to $80,000$7,000
$80,001 to $90,000$8,000
$90,001 to $100,000$9,000>
$100,000$10,000*
*When former students report more than $100,000 in education debt, they could be eligible to receive a higher amount of MBA loan forgiveness. The maximum annual assistance is $30,000.

2. Duke University

The Rex and Ellen Adams Loan Assistance Program offers student loan forgiveness awards to graduates of the daytime MBA program at Duke University’s Fuqua School of Business if they serve public agencies or nonprofit organizations. Candidates must work full time for a qualifying employer.

The school has awarded $2.1 million in MBA loan forgiveness to 102 alumni, at last count.

To be eligible, candidates must apply for the program within four years of graduation. You can receive up to $15,000 in loan assistance each year and remain eligible for the program, as long as you are employed at the qualifying agency within eight years of your graduation.

Next application period for Duke MBA loan forgiveness
● April 15, 2021 through May 15, 2021

3. Harvard University

If you went to Harvard or are set to attend the school, then you’re in luck. The Ivy League titan has multiple programs to help secure MBA loan forgiveness and relief.

HBS Social Enterprise Loan Repayment Assistance Program

The program provides aid to MBA graduates employed in managerial positions in the nonprofit or public sectors, as well as (starting in 2017) those working in select for-profit enterprise positions. MBA student loan borrowers can apply for this program within 10 years of graduation, although preference is given to those who apply within the first three years after graduating.

Awards are based on a number of factors, including the applicant’s earnings, qualifications, need-based debt and job fit. Candidates with salaries of $100,000 or less are eligible for up to $10,000 each year. If your salary is higher than that, you may still be eligible for partial assistance.

Rock Center Loan Reduction program

If you’re a Harvard graduate working in for-profit entrepreneurial endeavors, then you, too, have a shot at repayment assistance. This program provides one-time, needs-based awards ranging from $10,000 to $20,000 to current graduating MBA students pursuing entrepreneurship.

Candidates looking to reduce their MBA student loans through this program must demonstrate significant financial need and serve as a founder or senior executive of their entrepreneurial venture.

HBS Loan Reduction for Private Sector Employees

Graduates working in the private sector with an emphasis on social enterprise aren’t totally left out either. This program offers a one-time loan reduction of $5,000 to $15,000 at the time of graduation to qualified students working in the private sector. To be eligible, you must earn a total compensation at or below $95,000.

4. New York University

Did you get your MBA from NYU’s Stern School of Business and now work in a leadership position at a place with a social mission? If so, you may be eligible for NYU’s Loan Assistance Program. It’s designed to encourage graduates to use their skills to benefit an organization that might typically pay a lower salary.

Stern MBA graduates are eligible for this loan assistance within 10 years of the date of their graduation. Graduates from the Classes of 2012 through 2021 applying for the first time face a 2021 application deadline of Dec. 15.

Candidates must be employed full time at a nonprofit, in public service or with another organization that carries out a social mission.

Graduates with gross annual compensation of up to $100,000 are eligible for assistance and can receive a maximum award of $15,000 per year. The amount you receive is based on how much you borrowed for your education, as well as on your income level.

Image: Stern.NYU.edu

5. Northwestern University

Graduates of the MBA program at Northwestern who pursue a career in the nonprofit world or in public service may be eligible for The Collins Family Loan Assistance Program.

Applicants must make an adjusted annual income of $115,000 or less to qualify for aid, and they can receive a maximum of $15,000 annually.

6. Stanford University

The Stanford Graduate School of Business offers loan assistance for MBA grads who work in the nonprofit or public sectors, including local and national government jobs, through the Stanford MBA Nonprofit/Public Service Loan Forgiveness Program.

Candidates must work at least part time (20 hours) with the intention of remaining at the organization for a minimum of six months.

If your adjusted income is $95,000 or less, you can receive the full amount of your annual loan payments. If your income exceeds that threshold, you can receive partial loan forgiveness.

7. University of California, Berkeley

The Haas School of Business at the University of California, Berkeley, offers the Haas Loan Repayment Assistance Program for business grads employed in the nonprofit or public sector. To qualify for this MBA loan forgiveness program, candidates must work more than half-time at a government agency or nonprofit.

The amount of loan assistance you receive is based on your gross income. You can receive full loan repayment assistance if your modified gross income is up to $95,000, but if you make more, you are still eligible for partial loan assistance.

Annual application deadlines for Cal MBA loan forgiveness
July 15: For loan payments made from January through June
January 15: For loan payments made from July through December

8. University of Michigan

MBA grads from the University of Michigan who work in the public sector or pursue nonprofit employment may be eligible for the Ross Loan Repayment Assistance Program.

Under this program, full-time workers for an eligible employer can receive funding to help repay their student loans. Award amounts vary, with the average payment for 2020 reported at $4,578. Awards ranged between $1,530 and $8,000 per graduate.

Annual application period for Michigan MBA loan forgiveness
● Sept. 1 through Nov. 1

9. University of Pennsylvania

The John M. Bendheim Loan Forgiveness Fund is designed to encourage Wharton MBA grads to pursue meaningful careers in public service and nonprofit sectors.

This option is open to Wharton alumni who graduated within the last five years. Eligible candidates could receive up to $20,000 per year to help reduce their MBA student loan balance. Criteria include career goals, salary and social impact activity.

Since 2005, the fund has doled out $2 million in MBA loan forgiveness to about 100 alumni.

Next application period for Wharton MBA loan forgiveness
● Sept. 15, 2020 through Dec. 1, 2020

10. Yale University

Yale MBA grads working in the public or nonprofit sectors may be eligible for loan repayment assistance through the Yale School of Management Loan Forgiveness Program.

Graduates of the MBA, MAM and MMS programs are eligible for repayment assistance if they work full time at a qualified nonprofit or government organization.

The amount you get depends on your annual income:

  • If you earn up to $85,000, you could receive repayment assistance for 10% of your eligible loan principal
  • If your income is between $85,000 and $102,000, you could qualify for prorated support
  • If you make more than $102,000, you aren’t eligible

Through 2018, Yale had awarded more than $9 million in MBA loan forgiveness to 400+ alumni since the fund was founded.

Application periods for Yale MBA loan forgiveness
● May 1 through May 31
● Nov. 1 through Nov. 30

Other ways to receive MBA loan forgiveness

As you can see by now, going to a school that offers MBA loan forgiveness can help end your student debt, especially if you’re willing to commit the early part of your career to the nonprofit or public sector.

First, check whether your school has an MBA loan forgiveness or repayment assistance program. And if your school isn’t on the list above, check with your campus financial aid office.

Then consider other options to get your MBA student loans forgiven, including:

  • Public Service Loan Forgiveness: If you have federal student loans and work for a qualified agency for 10 years, you may be eligible for forgiveness of your remaining student loan balance.
  • Income-driven repayment: Under these plans, monthly payments for your federal loans are capped at a certain percentage of your income, and any remaining debt will be forgiven after 20 to 25 years. Keep in mind, however, that extending your repayment term generally results in paying more money on interest over the life of the loan.
  • More loan repayment assistance programs: State governments, plus public and private employers are among other entities that will help you pay off education debt, typically in exchange for working in a certain professional field.

It’s also important to note that your forgiven debt under the PSLF is not considered taxable income, whereas any forgiven loans under an income-driven plan (or by some schools, above) is considered taxable income. Sure, your tax obligations might be less than what you would have owed, but it’s key to prepare for the possibility of a big tax bill.

If you have MBA student loans, there are ways to reduce your debt and get repayment assistance and/or MBA student loan forgiveness. Your school is a great place to start your search, but continue your quest for relief by also considering the full list of student loan forgiveness programs.

Andrew Pentis and Marty Minchin contributed to this report.

Interested in refinancing student loans?

Here are the top 6 lenders of 2020!
LenderVariable APREligible Degrees 
1.89% – 6.66%1Undergrad
& Graduate

Visit Splash

1.89% – 5.90%2Undergrad
& Graduate

Visit Laurel Road

2.25% – 6.09%3Undergrad
& Graduate

Visit SoFi

1.99% – 5.34%4Undergrad
& Graduate

Visit Earnest

1.97% – 8.54%5Undergrad
& Graduate

Visit Lendkey

2.39% – 6.01%Undergrad
& Graduate

Visit Elfi

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of October 1, 2020.


2 Important Disclosures for Laurel Road.

Laurel Road Disclosures

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.

KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

This information is current as of December 1, 2020. Information and rates are subject to change without notice.
 


3 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student loan Refinance: Fixed rates from 2.99% APR to 6.09% APR (with AutoPay). Variable rates from 2.25% APR to 6.09% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.25% APR assumes current 1 month LIBOR rate of 0.18% plus 2.32% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. 

4 Important Disclosures for Earnest.

Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.49% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.34% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of October 26, 2020, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 10/26/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.


5 Important Disclosures for LendKey.

LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it  endorse,  any educational institution.

Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

As of 11/13/2020 student loan refinancing rates range from 1.97% to 8.54% Variable APR with AutoPay and 2.95% to 8.77% Fixed APR with AutoPay.