Business schools across the U.S. are rolling out major tuition cuts — some as high as 50% — as MBA applications continue to decline amid growing economic uncertainty and AI-related job fears.
According to The Wall Street Journal, schools like Purdue University, University of California, Irvine, and Johns Hopkins University are slashing tuition prices, expanding online options, and offering major scholarships to attract students. Purdue’s online MBA program, for example, is dropping from $60,000 to $36,000 for out-of-state students.
The push comes as traditional full-time MBA programs face a steep drop in demand. Data from the Graduate Management Admission Council showed MBA applications fell nearly 5% in 2023, with some schools now reporting declines between 20% and 30% in the current admissions cycle.
International applications have reportedly dropped even more sharply. Experts say the rise of AI and ongoing economic instability are fueling a “job-hugging” trend, where workers are staying put instead of leaving jobs to return to school. A recent survey found 57% of Americans now consider themselves “job huggers,” while 70% said they worry AI could impact their careers.
“In the past, many people used the MBA as a two-year career exploration period, but in today’s unstable environment, leaving a job for school is no longer seen as a safe choice,” said Petia Whitmore, founder of graduate admissions consultancy My MBA Path and former dean of admissions at Babson College.
The drop in international students has added even more pressure on U.S. business schools. According to the Institute of International Education, new foreign student enrollment in the U.S. fell roughly 17% in 2025, with stricter visa rules and immigration policies playing a major role. Graduate enrollment among international students also declined nearly 6%, reversing recent growth trends.
In response, many business schools are shifting away from lengthy, expensive MBA programs and focusing more on shorter, flexible master’s degrees centered around AI, tech, and business innovation. Schools are increasingly marketing these programs to young professionals looking to build AI skills without stepping away from their current jobs.
A 2024 survey found that most business school deans now believe lower-cost, brand-driven MBA programs will dominate the future market. Students appear to agree, with many saying AI knowledge has become essential for landing internships and entry-level jobs in today’s workforce.
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