More Kellogg Graduate School of Management students now will be able to receive loan assistance while working at nonprofit organizations because of a $10,000 increase in the maximum salary they can receive while in the program.
Kellogg students have until Jan. 31 to apply to the Loan Assistance Program, which pays part of the students’ loans for up to 10 years while they work at nonprofit organizations and earn less than $60,000.
The increase, which Kellogg administrators approved Dec. 11, will encourage students to apply for jobs with nonprofit groups, when they might have otherwise chosen a career in mainstream business because they have too many loan payments after graduation, said Donald Haider, director of Kellogg’s Public and Nonprofit Program. Many students wait several years after graduation to pursue careers in the nonprofit sector because of debt, Haider said.
“It’s a chronic problem if you look at the disparities in salaries,” he said.
Samantha Levine, a second-year Kellogg student who helped draft the proposal to administrators, said the increase should double the number of students who can take advantage of the program. Seven students now receive loan assistance, she said.
Levine, who also is co-chairwoman of Kellogg’s Social Impact Club, said the increase reaffirms her decision to search for a career with a nonprofit organization.
“I wasn’t certain I was going to go into nonprofit right away, but as I’ve gotten more into it and I’ve researched more, I’ve found it’s where my heart is,” she said. “It’s nice for me to know there’s a safety net.”
A survey of similar programs at top business schools showed that Kellogg needed to increase the salary limit in order to remain competitive with other schools. The increase puts Kellogg’s program in the league of Stanford University, which also assists students making less than about $60,000 after graduation.
The salaries of nonprofit professionals also have risen. The projected average salary for professionals who solicit donations in nonprofit organizations will increase this year by 26 percent, to $57,372 a year, according to a NonProfit Times article. Average salaries for positions such as program director and chief of direct marketing also fall between $50,000 and $60,000 a year.
Second-year Kellogg student Belinda Marcus said the increase in salary could diversify future classes by attracting students who might want careers in nonprofit sectors but are unlikely to take them because of financial reasons.
First-year Kellogg student Joey Olivier said the increase would make him more likely to take a lower-paying position with a nonprofit organization directly after graduating from the Public and Nonprofit Program.
“Sixty-thousand dollars is a respectable salary, especially if part of your loan is forgiven,” he said.
