Mid-tier MBA Tuition Slashed Up to 50% Amid AI, Loan Caps

Several U.S. business schools outside the top 20 announced large tuition cuts for the upcoming MBA class. Purdue University’s Mitch Daniels School of Business reduced incoming MBA tuition from $60,000 to $36,000, a 40% cut. Johns Hopkins University is offering scholarships that cover roughly half of tuition across cohorts. The University of California, Irvine lowered tuition for its Flex and Executive MBA programs by about 38%.

Many programs are seeing application declines this admissions cycle. Several U.S. schools reported application drops of 20% to 30%, and some institutions reported international applications falling as much as 43%.

A new federal graduate loan limit that takes effect in July 2026 will cap total graduate borrowing at $100,000. The Department of Education stated the change “will curb excessive borrowing and force institutions to evaluate their costs.” Two-year MBA programs that cost $150,000 or more before living expenses will face a narrower financing window for students.

Investor Gagan Dhillon wrote on social media that the MBA historically bundled a prestige signal and a skills upgrade, and that advances in artificial intelligence have reduced the standalone value of the skills component. He added that the largest tuition cuts are concentrated at programs outside the top 20.

Several leading programs, including Harvard, Stanford, Wharton, Booth, Sloan and Kellogg, have kept tuition steady or increased it for the next cycle.

Employer demand for MBA hires has softened in recent years. Surveys and school reports show recruiter demand for MBA graduates declined from about 92% in 2019 to roughly 71% in 2024 at some firms. Entry-level MBA job postings are down about 35%, and some major consulting and finance firms reduced MBA-class hiring by 20% to 40% over the past two years.

Business school leaders point to multiple factors behind weaker demand: AI that automates many junior professional tasks, tighter graduate loan access, visa and international recruitment frictions, and softer hiring in parts of the economy. Schools that cut tuition stated they aim to keep programs accessible and aligned with shifting student and employer needs. Analysts and deans plan to monitor enrollment and hiring data in the coming admissions cycle.