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What is the story about?
One of the most recognised and expensive graduate degrees is seeing a sharp reset in pricing in the United States, with several business schools cutting tuition by as much as 50%.
This comes as demand for traditional MBA programmes weakens and hiring slows under pressure from artificial intelligence (AI) and tighter job markets.
According to a Wall Street Journal (WSJ) report, American universities are rolling out steep tuition discounts across select MBA and specialised business courses.
Which universities are slashing MBA fees?
Purdue University’s Mitch Daniels School of Business will cut tuition by 40% this fall by reducing the cost of its 48-credit online MBA from $60,000 to $36,000 for out-of-state students.
The University of California, Irvine is slashing fees by up to 38% on its Flex and Executive MBA programmes which will make room for savings of $30,000 to $48,000.
Also Read | NEET UG re-examination announced: Education Minister says test to be online from 2027
Johns Hopkins Carey Business School is providing 50% scholarships to Maryland college graduates enrolling in specialised master’s programmes this fall.
Why are the US univs offering discounts on MBA fees?
The discounts are largely focused on shorter, skill-based degrees aimed at working professionals facing a tougher hiring environment and rapid AI-driven disruption.
The WSJ report said the move shows weakness in demand for graduate business education.
The move could also be due to application volumes falling across the US. A drop of 20-30% has been reported across US business schools this year. International applications are down by as much as 43% at some institutions.
US puts cap on education loan borrowings
The shift comes ahead of new US federal loan caps taking effect in July 2026, which will limit graduate borrowing to $100,000. This will reduce access to financing for programmes that often cost more than $150,000 before living expenses.
Also Read | Cisco to cut about 4,000 jobs in AI-focused restructuring as orders surge
The US Department of Education said, “New loan limits taking effect this summer will curb excessive borrowing and force institutions to evaluate their costs.”
Investor Gagan Dhillon described the trend as a structural split in the MBA model.
“The MBA was always two products sold as one: a signal and a skill upgrade. AI just made the skill upgrade free. So schools that sold only skill are in a fire sale,” he said, as quoted in BeInCrypto.
Top schools including Harvard, Stanford, Wharton, Booth, Sloan and Kellogg have held tuition steady or raised it. None of the institutions cutting prices are ranked in the top tier, according to Dhillon.
Weak MBA hiring trends
Recruiter demand for MBA graduates has also weakened, falling from 92% in 2019 to 71% in 2024 in some surveys, while entry-level MBA job postings are down about 35%.
Also Read | How new Labour Codes rules could impact wages, compliance and workplaces
The WSJ attributed the slowdown to visa friction, loan constraints and cyclical hiring weakness, along with AI reducing demand for entry-level roles.
This comes as demand for traditional MBA programmes weakens and hiring slows under pressure from artificial intelligence (AI) and tighter job markets.
According to a Wall Street Journal (WSJ) report, American universities are rolling out steep tuition discounts across select MBA and specialised business courses.
Which universities are slashing MBA fees?
Purdue University’s Mitch Daniels School of Business will cut tuition by 40% this fall by reducing the cost of its 48-credit online MBA from $60,000 to $36,000 for out-of-state students.
The University of California, Irvine is slashing fees by up to 38% on its Flex and Executive MBA programmes which will make room for savings of $30,000 to $48,000.
Also Read | NEET UG re-examination announced: Education Minister says test to be online from 2027
Johns Hopkins Carey Business School is providing 50% scholarships to Maryland college graduates enrolling in specialised master’s programmes this fall.
Why are the US univs offering discounts on MBA fees?
The discounts are largely focused on shorter, skill-based degrees aimed at working professionals facing a tougher hiring environment and rapid AI-driven disruption.
The WSJ report said the move shows weakness in demand for graduate business education.
The move could also be due to application volumes falling across the US. A drop of 20-30% has been reported across US business schools this year. International applications are down by as much as 43% at some institutions.
US puts cap on education loan borrowings
The shift comes ahead of new US federal loan caps taking effect in July 2026, which will limit graduate borrowing to $100,000. This will reduce access to financing for programmes that often cost more than $150,000 before living expenses.
Also Read | Cisco to cut about 4,000 jobs in AI-focused restructuring as orders surge
The US Department of Education said, “New loan limits taking effect this summer will curb excessive borrowing and force institutions to evaluate their costs.”
Investor Gagan Dhillon described the trend as a structural split in the MBA model.
“The MBA was always two products sold as one: a signal and a skill upgrade. AI just made the skill upgrade free. So schools that sold only skill are in a fire sale,” he said, as quoted in BeInCrypto.
Top schools including Harvard, Stanford, Wharton, Booth, Sloan and Kellogg have held tuition steady or raised it. None of the institutions cutting prices are ranked in the top tier, according to Dhillon.
Weak MBA hiring trends
Recruiter demand for MBA graduates has also weakened, falling from 92% in 2019 to 71% in 2024 in some surveys, while entry-level MBA job postings are down about 35%.
Also Read | How new Labour Codes rules could impact wages, compliance and workplaces
The WSJ attributed the slowdown to visa friction, loan constraints and cyclical hiring weakness, along with AI reducing demand for entry-level roles.
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