MBA Finances


Haas Loan Repayment Assistance Program


Click here to download LRAP application

PROGRAM GUIDELINES
The Haas Loan Repayment Assistance Program (LRAP) is designed to provide modest financial support to recent graduates of the Full-time MBA program employed in the public or nonprofit sectors where salaries are typically lower than in the private sector. Graduates who have accumulated significant debt for their education may feel constrained in their choice of employment by the need to repay that debt. The Haas LRAP provides financial support to facilitate these employment decisions. The program is administered by the Director of Financial Aid and funded with Professional Degree Fee (PDF) revenue.

The Haas LRAP will issue grants to each qualified participant on a semi-annual basis reimbursing her or him for all or a portion of the qualified educational loan payments made in the preceding six months. Because most educational loans offer a six-month grace period following graduation, graduates going directly into qualifying employment will usually receive their first Program grant approximately one year after graduation.

  1. Qualifying Employment
To be eligible for the Haas LRAP, an applicant must work more than half-time for a nonprofit organization or an agency of government. For the purposes of this determination, a nonprofit organization is any organization that is tax-exempt under section 501(c)(3) or 501 (c) (4) of the Internal Revenue Code. An agency of government can be any unit of local, state or national government in the United States. In special situations, the Program is available to graduates who are employed by a foreign government, a foreign nonprofit organization, or an international nonprofit organization as determined by the Financial Aid Committee.
  1. Income Eligibility and Calculation

    Participation in the Haas LRAP is limited to those graduates with an adjusted annualized full-time taxed and untaxed income of up to, and including, $75,000. Annualized full-time income is the gross income reported on federal tax returns (Form 1040, line 36; form 1040A, line 21; or form 1040EZ, line 4; or Telefile, line 1), adjusted for the calendar period employed and the number of hours worked per week. If housing is provided, a participant’s income will be increased by $1,000 per month unless she/he can show that the value is less. A married participant's eligible income will not be adjusted unless her or his spouse has a higher income, in which case the participant's eligible income will be calculated based on half of the joint income of the couple. For purposes of entrance into and participation in the LRAP, persons with dependents, as determined under federal income tax guidelines, shall have their income adjusted downward by $6,000 for one dependent, and by $4,000 for each additional dependent. 

  2. Eligible Loans

    The LRAP will reimburse payments made only on the principal and capitalized interest of loans (private and federal) borrowed during the course of, and in order to fund, study in the Haas Full-time MBA Program. The following shall not be considered in determining Program assistance: loan amounts in excess of $55,500 and any loan amount borrowed in a given year in excess of the general student budget as determined for that year by the Director of Financial Aid.

  3. Length of Program Participation

    Haas MBA graduates are allowed up to three years after the end of their first scheduled repayment period to begin participating in the Program. (Normally the end of the first scheduled repayment period would be approximately a year after graduation.) The maximum length of LRAP participation is ten years. This length of eligibility will provide Program participants with financial support throughout the entire ten-year standard repayment plan.

  4. Calculation of Program Assistance

    The Haas Director of Financial Aid will determine and award all LRAP grants, subject to the review and approval of the Financial Aid Committee. The Program will award each participant a grant on a semi-annual basis equal to the participant's total repayments actually made on the principal and capitalized interest of eligible loans during the preceding six month period. To take maximum advantage of the Program, participants are advised to make payments equal to those due under a standard ten-year repayment plan. Payments made in excess of those due under a ten-year repayment schedule are not eligible for reimbursement by the Program. Expect up to 8 weeks for reimbursement from campus.

  5. Application Procedure

    Download the application in .PDF format. Applications must include all pertinent information regarding loans, employment and income. Appropriate tax records, paycheck stubs, and W-2s are also required. Applications are due on June 10 for August disbursements, and December 10 for February disbursements.

  6. Limited Funds Contingency and Right to Modify


Important!
In Addition to the application you must provide:

Return this application and all required documents to:

Haas Financial Aid Office
Haas School of Business, #1900
University of California, Berkeley
Berkeley, CA 94720-1900
voice (510) 643-0183 
fax (510) 642-9387

"I am grateful for, and proud of, Haas' support of those who pursue a career in the non-profit sector. What we do is important, and the support I receive enables me to continue doing what I love." Jen Sang, MBA '03