More Medical Schools Reduce Debt-Burden on Students

According to a Medscape report, 11 medical schools in the last five years have eliminated or reduced tuition. The University of Houston waived tuition for its first class of students. And other programs, like the Yale School of Medicine, are demonstrating a longer-term commitment. The school recently announced that a large donor gift will ensure that all medical students with demonstrated financial need will take on no more than $10,000 in loans. 

On average, medical school tuition has increased by $1500 a year since 2015, which has significantly outpaced inflation. And the majority of students, almost three-quarters, take out loans to pay for its cost. Students bear an average debt burden of $200,000 to $215,000, although about 14 percent have loans worth more than $300,000. This is particularly noteworthy because tuition actually makes up a small percentage of schools’ operating budgets. While it varies between programs, at NYU Grossman, prior to it becoming tuition-free, tuition comprised just 0.25 percent of the budget. Via Medscape, Daniel Barron, MD, and a psychiatrist at Brigham and Women's Hospital in Boston, argued that most schools could cut tuition by belt-tightening and redirecting some existing funds. 

"Tuition can't keep rising without having unintended consequences. The resulting debt is putting a massive amount of pressure on future generations of physicians," said Robert Pearl, MD, and a professor at Stanford’s School of Medicine told Medscape.  

Below, we’ve compiled a list of schools that have created programs to reduce or waive tuition. The Education Data Initiative also provides a complete list of average costs for resident and non-resident attendees at the 193 accredited medical schools (allopathic and osteopathic). 

Schools With Eliminated or Reduced Tuition:

New York University Grossman School of Medicine: Provides full tuition for all admitted students, as well as student health insurance

Cleveland Clinic Lerner College of Medicine (CCLCM): Provides full tuition and select administrative fees for all admitted students

Columbia University Vagelos College of Physicians and Surgeons: Offers the Vagelos Scholarship Program, which will meet 100 percent of a student’s demonstrated financial need

Weill Cornell School of Medicine: Offers need-based financial aid under a financial program that offers full-ride grants (debt-free) instead of loans

Icahn School of Medicine at Mt. Sinai :The Enhanced Scholarship Initiative (ESI) allows qualifying (financial need-based) medical students to graduate with a maximum total debt of $75,000.

Washington University School of Medicine in St. Louis: Considers all admitted first-year students for a full or partial tuition scholarship for all four years of medical school based on need and/or merit (or a combination) 

Stanford School of Medicine: Provides scholarship funding to eliminate medical school debt for qualified students with demonstrated financial need

Geisinger Commonwealth Medical School: The Geisinger Primary Care Scholars Program provides debt-free medical school and living assistance to medical students who commit to work within primary care at the health system after graduating.

NYU Grossman Long Island School of Medicine: Provides full tuition, student health insurance, and offers debt-free scholarships to qualifying students for housing, food, books, and other miscellaneous expenses

Kaiser Permanente School of Medicine: Offers students, entering between 2019-2024, the school’s first five cohorts, a scholarship covering 100 percent of tuition for all four years of medical school

Yale School of Medicine: Beginning with the 2023–2024 academic year, Yale medical students with demonstrated financial need will not need to take out more than $10,000 in loans per year.

Declining MBA Applications Prompt Business Schools to Change Program Delivery Models

Late last month the University of Illinois at Urbana-Champaign announced its decision to shut down its two-year MBA program and reallocate funds to its online MBA. Just prior to this announcement, earlier in May, the last two-year MBA class graduated from the University of Iowa Tippie School of Management.

And they’re not the only ones. Wake Forest University, Virginia Tech, and Stetson University in Florida have also cut their two-year MBA programs. According to a recent Wall Street Journal article, “Between 2014 and 2018, the number of accredited full-time M.B.A. programs in the U.S. shrank nine percent to 1,189, with schools reporting 119 fewer two-year degrees in the most recent survey by the Association to Advance Collegiate Schools of Business.”

At the University of Illinois, the numbers told a clear story: In 2015 the incoming full-time, two-year MBA program had 74 students, in 2018 it had 49, and the current matriculation for the fall of 2019 is 38 students. Applications for the online MBA program, however, have tripled since 2016. Jeffrey Brown, dean of the business school at the University of Illinois, said the full-time MBA program will lose two million dollars this year. “This was an easy business decision to make, and a relatively easy educational decision, but it was an extremely hard call to make from the emotional side of things,” said Brown.

With the documented lackluster application volume to MBA programs and amidst a strong economy, some schools are focusing on offering competitive online MBA programs, as well as more specialized master of science degrees. The Wall Street Journal noted that among the business schools included in the aforementioned AACSB survey, there were 140 new specialized master’s programs in 2018, a 16 percent jump from 2014. And the number of online MBA programs doubled to 390.

Believing that one component of the decline in applications may be due to the steadily increasing costs of the two-year MBA, Harvard Business School and University of Chicago’s Booth School of Business have both decided to hold tuition costs steady while also increasing scholarship funds.  An article in Forbes recently noted that the “decades-long steady march of escalating price increases” has been consistent across almost all business schools and has typically exceeded the cost of inflation. The article notes that last year, tuition costs increased at variable rates from 11 percent at MIT’s Sloan to 1.6 percent at UCLA’s Anderson. Chicago Booth’s decision to freeze tuition garnered praise from Dean Edward Snyder of the Yale School of Management who said, “I think that is a brilliant move… It’s not because of weakness. It’s because of strength, and it’s the first school that is stepping back and saying we are not going to keep going down this path... It doesn’t indicate how the business model is going to get redone, but it is a signal that it needs to change.”

While online models may not be able to offer the corporate recruiting and networking opportunities, or prestige that the full-time, two-year MBA provides, the programs appear to meet a need in the market for developing business skills. And they do so with added flexibility and without the high costs of tuition and time out of the workplace.

This is good news for prospective students. The online route is providing a closer substitute for educational delivery than we’ve seen in the past. And for those still interested in the full-time, two-year model, lower application volume could mean a higher likelihood of securing both a coveted spot at a top ten school, as well as scholarship money.