diff --git a/common/djangoapps/student/management/commands/manage_user.py b/common/djangoapps/student/management/commands/manage_user.py
index dcb299006e..fed69c7771 100644
--- a/common/djangoapps/student/management/commands/manage_user.py
+++ b/common/djangoapps/student/management/commands/manage_user.py
@@ -23,6 +23,7 @@ class Command(BaseCommand):
         parser.add_argument('--remove', dest='is_remove', action='store_true')
         parser.add_argument('--superuser', dest='is_superuser', action='store_true')
         parser.add_argument('--staff', dest='is_staff', action='store_true')
+        parser.add_argument('--unusable-password', dest='unusable_password', action='store_true')
         parser.add_argument('-g', '--groups', nargs='*', default=[])
 
     def _maybe_update(self, user, attribute, new_value):
@@ -68,7 +69,7 @@ class Command(BaseCommand):
         user.delete()
 
     @transaction.atomic
-    def handle(self, username, email, is_remove, is_staff, is_superuser, groups, *args, **options):
+    def handle(self, username, email, is_remove, is_staff, is_superuser, groups, unusable_password, *args, **options):
 
         if is_remove:
             return self._handle_remove(username, email)
@@ -91,6 +92,11 @@ class Command(BaseCommand):
         self._maybe_update(user, 'is_staff', is_staff)
         self._maybe_update(user, 'is_superuser', is_superuser)
 
+        # Set unusable password if specified
+        if unusable_password and user.has_usable_password():
+            self.stderr.write(_('Setting unusable password for user "{}"').format(user))
+            user.set_unusable_password()
+
         # Ensure the user has a profile
         try:
             __ = user.profile
diff --git a/common/djangoapps/student/management/tests/test_manage_user.py b/common/djangoapps/student/management/tests/test_manage_user.py
index 1335ee5b14..3b3186e250 100644
--- a/common/djangoapps/student/management/tests/test_manage_user.py
+++ b/common/djangoapps/student/management/tests/test_manage_user.py
@@ -48,6 +48,29 @@ class TestManageUserCommand(TestCase):
         call_command('manage_user', TEST_USERNAME, TEST_EMAIL, '--remove')
         self.assertEqual([], list(User.objects.all()))
 
+    def test_unusable_password(self):
+        """
+        Ensure that a user's password is set to an unusable_password.
+        """
+        user = User.objects.create(username=TEST_USERNAME, email=TEST_EMAIL)
+        self.assertEqual([(TEST_USERNAME, TEST_EMAIL)], [(u.username, u.email) for u in User.objects.all()])
+        user.set_password(User.objects.make_random_password())
+        user.save()
+
+        # Run once without passing --unusable-password and make sure the password is usable
+        call_command('manage_user', TEST_USERNAME, TEST_EMAIL)
+        user = User.objects.get(username=TEST_USERNAME, email=TEST_EMAIL)
+        self.assertTrue(user.has_usable_password())
+
+        # Make sure the user now has an unusable_password
+        call_command('manage_user', TEST_USERNAME, TEST_EMAIL, '--unusable-password')
+        user = User.objects.get(username=TEST_USERNAME, email=TEST_EMAIL)
+        self.assertFalse(user.has_usable_password())
+
+        # check idempotency
+        call_command('manage_user', TEST_USERNAME, TEST_EMAIL, '--unusable-password')
+        self.assertFalse(user.has_usable_password())
+
     def test_wrong_email(self):
         """
         Ensure that the operation is aborted if the username matches an