Note that the government has paused all repayment on federally held student loans through the end of 2022, with no interest to be charged during that period and no loans to be held delinquent or in default.
* * *
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.)
|School||Amount 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 University||Up to $15,000|
|6. Stanford University||Up to the full amount of your loan payments|
|7. University of California, Berkeley||Up to the full amount of your loan payments|
|8. University of Michigan||$1,530 to $8,000 (numbers for 2020)|
|9. University of Pennsylvania||Up to $20,000|
|10. Yale University||Up to 10% of your loan principal|
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 debt||Annual 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>|
|*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.|
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|
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.
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.
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.
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.
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.
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.
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.
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
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|
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|
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 9 lenders of 2022!
|Lender||Variable APR||Eligible Degrees|
|2.49% – 11.72%1||Undergrad & Graduate|
|2.50% – 6.30%2||Undergrad & Graduate|
|4.13% – 7.39%3||Undergrad & Graduate|
|2.49% – 7.99%4||Undergrad & Graduate|
|2.49% – 7.99%5||Undergrad & Graduate|
|3.24% – 8.24%6||Undergrad & Graduate|
|2.48% – 7.98%||Undergrad |
|1.74% – 7.99%7||Undergrad & Graduate|
|3.69% – 9.92%8||Undergrad & Graduate|
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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 September 6, 2022.
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 $9 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.
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 April 29, 2021. Information and rates are subject to change without notice.
3 Important Disclosures for LendKey.
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 09/09/2022 student loan refinancing rates range from 4.13% APR – 7.39% Variable APR with AutoPay and 2.99% APR – 9.93% Fixed APR with AutoPay.
4 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.
You can choose between fixed and variable rates. Fixed interest rates are 3.99% – 8.74% APR (3.74% – 8.49% APR with Auto Pay discount). Starting variable interest rates are 2.74% APR to 8.24% APR (2.49% – 7.99% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA.
5 Important Disclosures for Navient.
6 Important Disclosures for SoFi.
Fixed rates range from 3.99% APR to 8.24% APR with a 0.25% autopay discount. Variable rates from 3.24% APR to 8.24% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. 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. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.
7 Important Disclosures for Purefy.
Purefy Student Loan Refinancing Rate and Terms Disclosure: Annual Percentage Rates (APR) ranges and examples are based on information provided to Purefy by lenders participating in Purefy’s rate comparison platform. For student loan refinancing, the participating lenders offer fixed rates ranging from 2.73% – 7.99% APR, and variable rates ranging from 1.74% – 7.99% APR. The maximum variable rate is 25.00%. Your interest rate will be based on the lender’s requirements. In most cases, lenders determine the interest rates based on your credit score, degree type and other credit and financial criteria. Only borrowers with excellent credit and meeting other lender criteria will qualify for the lowest rate available. Rates and terms are subject to change at any time without notice. Terms and conditions apply.
8 Important Disclosures for Citizens.
Education Refinance Loan Rate Disclosure: Variable interest rates range from 3.69%-9.92% (3.69%-9.92% APR). Fixed interest rates range from 4.49%-10.11% (4.49%-10.11% APR).
Undergraduate Rate Disclosure: Variable interest rates range from 6.39%- 9.60% (6.39% – 9.60% APR). Fixed interest rates range from 6.58% – 9.79% (6.58% – 9.79% APR).
Graduate Rate Disclosure: Variable interest rates range from 3.69% – 9.16% (3.69% – 9.16% APR). Fixed interest rates range from 4.49% – 9.35% (4.49% – 9.35% APR).
Education Refinance Loan for Parents Rate Disclosure: Variable interest rates range from 3.69%- 9.09% (3.69%- 9.09% APR). Fixed interest rates range from 4.49% – 9.28% (4.49% – 9.28% APR).
Medical Residency Refinance Loan Rate Disclosure: Variable interest rates range from 3.69% – 9.16% (3.69% – 9.16% APR). Fixed interest rates range from 4.49% – 9.35% (4.49% – 9.35% APR).