We’ve been talking about the turmoil in the student loan market, and how this turmoil will impact international students in particular. In this difficult student loan environment, one US school has really stepped up to provide a solution for its international students. Yesterday, the University of Chicago Graduate School of Business announced in a press release that they have launched a guaranteed loan program for international students that covers the full cost of tuition, housing and related expenses. All international students in the M.B.A. and Ph.D. programs qualify for the loan program and no U.S. cosigner is required.
An excerpt directly from the press release on PR Web:
“Administered by Citibank, the Chicago GSB International Loan Program is available to returning students as well as new students entering the school in September. The new program replaces one that ended abruptly in July when the Illinois Designated Account Purchase Program (IDAPP) failed to renew its line of credit due to disruptions in the capital markets.
“In order to obtain the best terms for our students, the school is contributing funding to the new program,” said Rosemaria Martinelli, associate dean for student recruitment and admissions. “Compared with the previous loan program, the new rates and terms are more favorable to students.”
The school is committed to ensuring that all students, regardless of citizenship, have access to funds by the start of classes on September 25, 2008, Martinelli said. An online application will be used to simplify the process for applying for a loan.
“Students will be able to borrow up to $150,000 and have 20 years to repay. Payments can be deferred to begin six months after graduation. The University’s arrangement with Citibank is for one year. Beginning next year we expect to offer our international students a choice of several loan programs from multiple lenders,” Martinelli said.
The University of Chicago Graduate School of Business is one of the leading business schools in the world. The school’s faculty includes many renowned scholars and its graduates include many business leaders across the United States and worldwide. The Chicago Approach to Management Education is distinguished by how it leverages fundamental knowledge, its rigor, and its practical application to business challenges.”
Its great to see a US school taking the financing needs of its international students seriously enough to ensure a loan program available to all. Of course, its easier to put together a program like this when you are a premier business and graduate school like the University of Chicago. However, as loans get tougher and tougher for international students to get, more schools could look to this model.
International student loans are still available from International Student Loan. However, credit criteria and interest rates have gone up, and all borrowers need a US co-signer. Click here for more information.
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