Loan Assistance Program (LAP)

Kristen Zolla (MBA, class of 2003) "The Loan Assistance Program gives me the opportunity to work at an organization that I love with a mission that I believe in without questioning my decision to take this position over a comparable position for a for-profit company that would come with a higher salary. Moreover, the [LAP] provides a service to the community at large by giving nonprofits and socially responsible organizations a chance to recruit and retain MBA grads who provide experience and skills which complement those of the typical nonprofit employee."

The Loan Assistance Program (LAP) provides financial assistance, in the form of semi-annual loan forgiveness awards, to qualified Duke MBA-Daytime Program alumni who work full-time for eligible nonprofit and government organizations. The program, originally known as the Fuqua Loan Forgiveness Fund, was established through the generosity and vision of The Duke MBA-Daytime Class of 2001. The program is managed by Duke's Center for the Advancement of Social Entrepreneurship (CASE). Read some Alumni testimonials and quotes about the program here.

The nonprofit and public sectors are increasingly looking to business-inspired methods and approaches for addressing social problems. Concerns about the effectiveness of traditional charitable and governmental strategies have resulted in a shift in mindset from meeting needs to reducing needs, from charitable relief to systemic solutions, from social spending to social investment. These trends have led to a growing demand amongst nonprofit organizations and public institutions for management skills and business expertise. In response to these needs, many leading social sector organizations are hiring MBAs who are interested in applying their skills to having positive social impact, and MBAs are finding these opportunities to be both challenging and personally rewarding. However, even with some organizations raising the salaries for MBAs above their sector norms, salaries and potential financial rewards for MBAs working in the social sector remain below the standards in consulting, banking, high-tech start-ups, brand management, and other more traditional MBA careers. The LAP is designed to help reduce these financial disincentives and ensure that pursuing a career in the nonprofit or public sector is an option for Duke MBA-Daytime Program alumni. Read a report on the LAP payout history. Please conact CASE if you are interested in helping to support this important program at case@fuqua.duke.edu.

Eligibility will be based on several different criteria, including

Loan eligibility - The LAP program will consider loans incurred for the cost of Duke MBA-Daytime Program education only, including Federal and private loans. Please note that we are unable to consider personal loans from family and friends.
Employment eligibility - 501(c)(3) organizations, governmental agencies, and foreign equivalents.
Income eligibility - All recipients of loan assistance are expected to contribute toward the repayment of their Fuqua loans. The level of this self-contribution will rise with income. Every participant with an adjusted annual individual income at or below the threshold of $65,000 is to contribute 3% of his/her adjusted annual income towards repayment of loans. For example, someone with an income of $50,000 would be required to contribute $1,500 per year. Every participant with an adjusted annual income above this threshold of $65,000 is to contribute 3% plus an additional 1% of total income for every $5,000 by which his/her income exceeds the threshold. For example, someone with an income of $70,000 would be required to contribute 4%, or $2,800 per year ($1,400 in each six month award cycle). The program will cover the balance, up to a maximum of $5,000 per participant per 6-month cycle. All tax-related matters shall be the responsibility of the award recipient.

Application Forms

New Applicant Form - (".doc" format, you will need Microsoft Word to view it.)
Renewal Application Form for individuals already in the LAP program - (".doc" format, you will need Microsoft Word to view it.)
Calculation Worksheet - ("xls" format, you will need Microsoft Excel to view it)

Potential recipients must complete the application and calculation worksheet in their entirety. Applicants should email their completed application to the email below, AND send a hard copy with supporting documents to the following address:

CASE: Loan Assistance Program
Duke University: The Fuqua School of Business
One Towerview Road, Box 90120
Durham, NC 27708-0120
Fax: 919-660-1096
case@fuqua.duke.edu

SOME HELPFUL INFORMATION TO KNOW BEFORE YOU APPLY

Please review the documents above, which thoroughly outline eligibility requirements for both applicants and employers. It is our intention that, before officially applying to the program, applicants should be able to gauge whether they would be eligible for assistance.

Application Deadline Dates

First-time applicants will be reviewed on a rolling basis.
The Fall 2008 deadline for renewal applications is October 31 - This cycle covers January-June 2009; disbursements will be mailed by the end of December.
The Spring 2009 deadline for renewal applications is April 30 - This cycle covers July-December 2009; disbursements will be mailed by the end of June.

Graduating students may apply to the LAP program while still enrolled at Duke and considering career options; however, while students would be notified on a rolling basis if they are approved, they would typically not receive their first LAP award until December following graduation.

Please note that awards require up to 60 days for processing.

Disbursement Dates

Award disbursements will be made in late June and late December. These months were selected since graduating students typically receive at least a six-month grace period for need-based loans.