Post-recession, there has been a general perception that financial aid for international students, especially securing a non cosigner student loan (i.e an education loan that does not require a U.S. cosigner) is difficult to obtain. It is true that the economic slowdown coupled with the increase in the number of defaulters have been the contributing factors causing many credit lenders to withdraw their student loan programs without a U.S. co-signer.
However the good news is that in spite of this, the MBA loan scenario is not that bleak as there are a good number of colleges offering student loans without a U.S. co-signer. Here’s a list to get you started.
1. Johnson at Cornell University in partnership with QUORUM Federal Credit Union offers no co-signer loans to students enrolled in full-time two year MBA as well as the accelerated MBA program. The loan amount would cover the cost of tuition after deduction of scholarship amount if any.
2. The NYU Stern School of Business in association with The First Marblehead Corporation and Union Federal Savings Bank provide a no co-signer loan to eligible international candidates.
3. Duke Fuqua School of Business offers a no co-signer loan through Coastal Federal Credit Union with the current rate being 8.25%.
4. Haas School of Business provides loan assistance through the Eli Lilly Credit Union to international students without a U.S. co-signer.
5. At Wharton, students can take a loan to cover up to 80% of the total student budget which includes tuition and living expense. Wharton in collaboration with Quorum Federal Credit Union would be offering this no co-signer loan to international candidates starting in the fall 2013 semester.
6. Yale School of Management offers the Yale International Student Loan to all international students. This loan does not need a U.S. co-signer and covers the tuition and fees after deduction of scholarships. The interest rate is fixed at 7.75%.
7. The Darden School of Business and the Darden School Foundation have entered into a multiyear International Loan Program agreement with Discover to provide no co-signer international student loans beginning with the class of 2014. The maximum loan amount is fixed at $65, 000 per year.
8. UCLA Anderson has partnered with Eli Lilly Credit Union to provide no co-signer loans up to $85,000 per year.
9. International students admitted at UNC’s Kenan-Flagler Business School can borrow up to $50,000 per year through the Coastal Federal Credit Union without needing a co-signer.
10. At Olin business School, loan without a U.S. co-signer is being offered though the rates and terms for 2012-13 are yet to be announced. Last year the loan was available for the tuition amount after deducting scholarship at an interest rate of 10%.
11. Emory University’s Goizueta Business School offers its international MBA students Emory Alliance Credit Union Custom MBA Loan under which they can borrow a total of $84,000 for their MBA program.
12. Chicago Booth also provides multiple loan options without requiring a co-signer. Admitted students are able to access details regarding the same.
13. MIT Federal Credit Union provides loan assistance up to $170,000 for students enrolling at MIT Sloan program without the need for a co-borrower.
14. International students admitted at Ross School of Business can avail the RSB-UMCU (Ross School of Business-University of Michigan Credit Union) loan without the need for a co-signer.
[Update: The RSB-UMCU loan is no longer available effective March 1, 2013]
15. At Tuck School of Business, numerous options are available for international students. The maximum loan amount is arrived at by doing a need-based analysis by the financial aid office.
The repayment term would vary for each school from a minimum of ten to up to twenty or twenty-five years.
Check with the college for the latest updates like any changes in the interest rates, loan amount or other loan-related aspect before applying for the loan as these tend to change each year.
Instead of just relying on information available on the web (including this list), it would be advisable to get all your queries answered by the financial aid office so that you have complete clarity and you can prepare your MBA financing roadmap accordingly.
If you can’t get into any of the schools mentioned here, you don’t need to give up hope. Check out third party options like Prodigy Finance that offer MBA education loans without collateral.