Deferred Tuition Program
To bring this benefit to our students, UC Davis is partnering with EdAid, a platform that specializes in powering affordable ways to finance education via income-based payments. This program is currently available to online MBA students only. Financial Aid and Scholarships offers the following comparison between this pilot program and the traditional federal student loan program to help students make an informed decision.
The Deferred Tuition Program (DTP) is a student-friendly payment model that helps universities and colleges make their high-quality programs more affordable. It’s a direct financial commitment to affordability, ensuring that students only pay when they achieve financial success. With the deferred tuition program, students can alleviate the upfront financial barrier, tie repayment to salary benchmarks, and avoid large amounts of additional interest charges being applied. For eligible students with lower annual incomes after graduation, the DTP program will cap their debt at 120 payments. Any remaining balance owed after 120 payments (equivalent to 10 years) will be written off by the Graduate School of Management.
Please note: the DTP option is available once 36 units have been completed. These estimates are for students who have begun their 37th unit in Year 2 of the program and represent one year of tuition expenses.
Deferred Tuition Program vs. Borrowing Federal Loans
Deferred Tuition Program (DTP)
Based on annual income; 0% interest rate.
| Deferred Tuition Program (DTP) Repayment | Deferred Tuition Amount | Interest Rate | Amount to Repay | Monthly Payment |
|---|---|---|---|---|
|
Annual Income of $30,000 (or less) |
$52,875 | 0% | $0* | $0/month (if annual income remains at or below $30,000 for the 120-month payment period) |
| Annual Income of $40,000 | $52,875 | 0% | $39,960* | $333/month (120 payments once repayment begins)* |
| Annual Income of $100,000 | $52,875 | 0% | $52,875 |
$833/month |
*Balance owed after 120 payments will be written off by the Graduate School of Management.
Federal Loans
Based on borrowed amount. Use the Loan Simulator to determine repayment options.**
| Federal Loan Standard Repayment Plan** | Graduate PLUS Loan | Interest Rate | Amount to Repay | Monthly Payment |
|---|---|---|---|---|
| Year 2 | $52,875 | 6.2% | $71,338 | $594/month (120 payments once repayment begins) |
**Results of the Loan Simulator are for informational purposes only and should not be considered financial advice. You are encouraged to review all available options and make decisions about borrowing and repayment that align with your individual goals. Based on 2021-22 interest rates; subject to change based on program start date.