Its that time of year again — everyone’s back in school, and InternationalStudent.com has launched its 3rd Annual Travel Video Contest! Time to start thinking about what you would do and where you would go with a fat wad of cash. The entry deadline is October 31 and the grand prize has been increased this year to $3,000. The winners will be announced in early November, and the finalists will be available for all to see on InternationalStudent.com.
Never mind the money – past winners now have worldwide fame among international students from their videos and blogs! In addition to the cash prize, the winner gets to blog on InternationalStudent.com for the duration of their trip or study abroad – providing a huge platform and millions of visitors to impress.
To enter, you must submit a video no longer than 5 minutes that describes the trip you would take if you win, and why you should win. The best entry will win the $3,000 grand prize. Humor is good, great footage helps, artistry and story-telling matter – you can tell from the past winners, which you can see on InternationalStudent.com. So be funny, or include some great footage and music, or tell a great story — something to get your entry noticed and stand out from the crowd.
Film students, technical and artistic types — you may have a leg up on the competition. But the contest is open to anyone 18 or older and studying outside their home country, or planning a trip to study abroad. And past winners include a guy going for his MBA – not exactly what you think of as an artistic pursuit – so anyone can win!
For more information and to enter, go to:
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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Almost two years ago on this blog, we talked about the debate in Sweden about whether to charge tuition to international students. Higher education in Sweden is free, but of course Swedes pay extraordinarily high taxes for high level services like free education. International students in Sweden so far have enjoyed the same free education as citizens — but unfortunately it looks like that is changing.
According to higher education minister Lars Leijonborg, no later than January 1, 2010, international students will have to pay tuition, unless they come from an EU country, Iceland, Liechtenstein and Norway.
From the Local online, Sweden’s News in English: “Our primary argument is that it is unwise of a country not to benefit from a payment system which obviously exists. Why should these students pay money to American or British universities, but not to Swedish [ones]?” Leijonborg explained to the Svenska Dagbladet newspaper.
The proposal includes stipends for students that cannot afford to pay the tuition. How those stipends would be implemented and how it would impact students from developing countries is yet to be determined.
The argument in favor of charging tuition to international students is understandable, as in general they don’t pay taxes into the Swedish system and most other country alternatives would require tuition payments. However, the simple fact that Sweden ignored this relatively minor revenue opportunity, and was gracious with its international student population, set it apart from the rest of the world of international education. While other countries have been criticized for viewing international students as a cash cow (for instance, in the UK international students typically pay much higher tuition than domestic students; in Australia universities have been criticized for enrolling students without sufficient English, arguably after the fees; and in the US international students are not eligible for subsidized federal loans like US students), Sweden has been the shining city on the hill, helping to attract the best and the brightest to its universities. As worldwide competition for international students continues to heat up, Sweden will likely lose a substantial portion of its international student population when it enacts this plan; there’s no doubt that it will lose some of its glimmer in the eyes of students from developing countries.
Click here to read the article in the Local.
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“College students in need of private loans to pay for the coming academic year will have to grapple with higher interest rates and tougher credit checks. Even then, some who have qualified for such loans in the past probably won’t this year.”
Wall Street Journal, 4/9/08
There has been a lot of media attention on the turmoil in the US student loan market over the past few months. In case you haven’t been paying attention, the Wall Street Journal quote referenced above should get your attention.
Student loans will be harder to get, and for those that get them, they will be more expensive. The harsh reality is that there will be less students who can afford to go to school this coming year. Of course the majority of those impacted will be US students, but international students will face the same hurdles.
The problem stems from the fact that student lenders typically sell their student loans, to raise more capital to make more loans as well as for overhead and profit. Right now, no one wants to buy those loans. So lenders have had to take a number of actions — here’s a few of the responses we’ve seen:
- Tightening Credit. Many student lenders have had to increase their credit requirements, meaning that you or your co-signer will need to have better credit to get a loan this year than you did last year. Although specific FICO score requirements are not made public by most lenders, we know that FICO score requirements are going up.
- Less Schools. Many lenders are trimming schools from their list of “approved schools,” both for federal and private loans.
- More Expensive Loans. Lenders have increased the pricing on loans to make sure they are profitable enough to be able to sell.
- Out of Business/Eliminating Programs. Over 60 lenders have decided to eliminate a private, consolidation or federal loan program or simply exit the market since they cannot make a profit on loans. Just last week, Bank of America decided that it will no longer make any private student loans, concentrating only on federal loans. Editor Mark Kantrowitz keeps a detailed chronology of the bad news on his site FinAid.com.
There is some good news. International student loans and study abroad loans are still available through InternationalStudentLoan.com and StudyAbroadLoans.com. We are committed to helping students fund an international education — we do not participate in the much bigger domestic student loan market, so international loans are all we do. We will continue to source and make available the best international loan products available. Also, interest rates are based on LIBOR, and that index has been going down,helping to offset the higher margin that lenders are requiring.
What can you do to ensure that you will have enough money to pay for your education, if you rely on loans? First, as always, borrow as little as you can. Use your own funds or family funds, apply for scholarships, cut as much as possible out of your budget. That advice never changes. But here is some guidance specific to the educational funding mess, bordering on crisis, that we are now in:
1. Apply Early. InternationalStudentLoan.com and StudyAbroadLoans.com both process and fund loans quickly, so students typically can apply at a very late stage and still have their funds in time. However, with the current uncertainty, it is best to apply, get approved, and get your funds for this coming academic year as soon as possible.
2. Good Co-Signers. Get the best co-signer you can. Since credit criteria and pricing have gone up, a good US co-signer is critical to getting your loan approved and priced reasonably.
3. Check Your School. Don’t assume that because you got a loan last year, you can automatically get another loan through the same program again. Many lenders have reduced their school lists. Also, InternationalStudentLoan.com now operates multiple programs — if your school is not on the list, contact us, as there may be another alternative for you.
No one knows for sure how long this credit crunch will continue, or what the student loan marketplace will look like when it is over. One thing is for sure — the earlier you start preparing for the coming school year, the less likely that you will be personally impacted by the turmoil.
We will continue to update any significant impact from the credit crunch on international student loans in this blog. Click here to subscribe to our blog and get an update when the next post comes out.
The new Canadian federal budget announced this week includes ambitious new funding for international education to help Canadian universities compete for top talent from Canada and around the world. From Macleans.Ca online:
“The program will award 500 PhD students with $50,000 each year for up to three years of study. The program will cost the government $25-million over two years. It will be open to both Canadian and international students.
The new initiative is a response to universities’ complaints that they are unable to attract the world’s brightest students to Canada. The program, named after Governor General George Vanier, aims to compete with high profile scholarship programs like the Rhodes program.”
Click here to read the rest of the story on Macleans.ca Online.
The Canadian Federation of Biological Societies also reported on a new study abroad program for Canadian students:
“The Government will also provide $3 million over two years for Canada Graduate Scholarship recipients ($6,000/year to 250 students) to help Canadian students study abroad for one semester.” For more information, visit the CFBS story.
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Dartmouth College, a member of the Ivy League and at the “forefront of US higher education since 1769,” has joined the elite group of US universities and colleges that offer need-blind admissions to international students.
From Dartmouth’s news release:
“Need-blind admissions for International Students
Starting immediately with the Class of 2012, the College will extend its need-blind admissions policy to all international students. Previously the College was need-blind for students from the U.S. as well as those from Canada and Mexico and provided financial aid to other international students up to a preset budget maximum. This cap will now be lifted and Dartmouth will join a very small group of schools that have a fully need-blind admissions process for international students.”
Under a need-blind admissions policy, a school reviews a students application for admission without considering the student’s ability to pay. Then if the student is admitted, the school must make the tuition affordable by meeting the student’s demonstrated financial need for all four years of their undergraduate study, through a combination of grants and loans. Dartmouth will become the 7th US school offering need-blind admission, joining MIT, Harvard, Princeton, Yale, Williams College and Middlebury College.
Visit InternationalStudent.com’s Schools Awarding Aid page to see more on the US colleges and universities that offer aid to international students.
Read the entire press release on Dartmouth’s website.
From the Brown Daily Herald
A new endowment will increase financial aid for students from sub-Saharan Africa and will help them financially for two years after graduation if they pledge to return to work in Africa, President Ruth Simmons and Israeli businessman Idan Ofer P’12 announced Thursday.
The “Advancing Africa Scholarship Fund” was announced in Davos, Switzerland, where both Simmons and Ofer are currently attending the World Economic Forum. The scholarship requires students to sign a pledge to return home for at least two years after receiving their degrees – an effort to “build capacity” in the continent, Simmons told The Herald.
Ofer’s gift of $5.75 million will fund $250,000 a year in scholarships for undergraduate students starting with the 2008-2009 academic year. The endowment will grow over time due to returns on investment, Simmons said, allowing the University to fund more students in the future.
The establishment of the fund marks an important milestone in Brown’s efforts to attract international students. Until recently, Simmons said, it was hard to attract students from Africa. Even with financial aid, those students would have difficulty paying off loans or fulfilling the parent contribution. International students have long complained about a lack of economic diversity among their peers at Brown, something Simmons called “a valid concern.” The endowment came as good news after years of “agonizing” over financial aid for international students, Simmons said.
Click here to read the rest of the story from the Brown Daily Herald.
Here’s a list of US schools that offer aid to international students.
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Its that time of year again when international students are frantically trying to put together their funding for the year, and evaluating how much of a loan to apply for. To help, we are re-posting this article that originally ran last year.
Financing an education in the United States is difficult, even for a US student. For international students, paying for college in the US is even harder. Almost two-thirds of all students enrolled at private four-year US schools receive loans of some type. US students can receive loans guaranteed by the government (Stafford loans, among others), but these valuable loans are not available to international students. Luckily, private student loans are available to international students on the same terms received by US students.
Before applying for a loan, you should exhaust the following potential funding sources:
1. Apply for international student financial aid from your school. Here’s a searchable list of schools awarding financial aid to international students: http://www.internationalstudent.com/schools_awarding_aid/
2. Research and apply for international student scholarships on your own: http://www.InternationalScholarships.com
3. Carefully evaluate how much money you or your family can provide towards your education. Every dollar you can pay directly is one less dollar you have to borrow.
Some international students can fund their US education simply using the sources above. However, like US students, most international students will need to fund at least a portion of their US education, if not the entire amount, with loans.
· US Co-Signer Required. International student loans require a US citizen or permanent resident (Green card holder) as a co-signer. The loans are credit-based, meaning the co-signer must have good credit history, good employment history (or other income history if the co-signer does not work), and must have lived in the US for the past two years. Although not everyone can find a family member, friend or other US citizen or permanent resident to co-sign for them, for those that do, they can access private student loans on the same basis as US students.
· Funds Paid Directly to You. Loan funds are paid to you, not to the school. This is a great feature in that you can use the funds for living expenses – but it also means that it is up to you to use the funds responsibly. Pay your tuition, room and board, health insurance and books first – anything extra is a luxury!
· Repayment. Repayment of an international student loan can be deferred while you are in school, and for six months after you finish school. After that, you will have up to 20 years to repay the loan, with a payment due every month. You are also eligible for hardship extensions if you run into unexpected circumstances that prevent you from being able to repay the loan for a short period of time.
· Interest Rates. Interest rates are variable, based on the LIBOR plus a margin. LIBOR is always several points below prime, so the margin is from 3.5% to 7.75%, and will be set by the lender based on the credit history of your co-signer and the repayment plan you select. The better your co-signer, the better your rate! LIBOR changes monthly, up or down, so the rate will be reset monthly. Click here for repayment examples for a $10,000 undergraduate international student loan.
· Online Application. You can apply online or by phone, and receive an almost immediate response as to whether you are conditionally approved for the loan. Then, you will need to sign the promissory note, and provide proof of enrollment and immigration status to receive your funds.
· No Application Fees. There are no application fees to apply for an international student loan. There is an origination fee if you actually receive the loan, but that amount is rolled into the loan amount and does not have to be paid out of pocket.
For more information on international student loans, visit InternationalStudentLoan.com
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As we discussed in the last post, US News and World Report dominates rankings of colleges and universities in the US. The US News rankings are comprehensive and helpful in many ways, but there are critics of the rankings system. One small newspaper has proposed its own rankings system for the past three years.
When the Washington Monthly published its 2007 College Rankings, which can be viewed online here, it didn’t look at average SAT score, average starting salary or average alumni giving, all standard fare in the US News and most other rankings. Instead, it graded schools based on three general categories — Social Mobility, Research and Service. Why? In the words of Editor Paul Glastris, from his stint on the Colbert Report, colleges should be ranked on their contribution to the public interest, not on whether they have great rock-climbing walls.
Here’s the three things Washington Monthly uses to rank a college’s contribution to the public interest:
1. Social Mobility: “We want our colleges to be engines of social mobility so that the poor can get a better life.” Under this criteria, the magazine looks at the percentage of students receiving Pell Grants, which it considers a good indicator of the school’s commitment to poorer students, as well as the percentage of those students that graduate.
2. Research: “We want colleges to create the research and PhDs that can power the economy.” Because Washington Monthly believes that research and PhDs are the key to growing the economy in a global market, they measure numbers of PhDs and amount of research spending by the university.
3. Service: “And we want colleges to inculcate an ethic of service for young people.” For this, Washington Monthly looks at the number of students entering the Peace Corps, the size of the school’s ROTC program, and the percent of work-study funds spent on community service projects.
Click here to see the whole college rankings report.
As an international student, did you use the US News and World Report rankings to help you select a US school? Would this alternative rankings system play into your decision-making process at all? We would love to hear your input.
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US News and World Report has dominated the college and university rankings in the US for years. Eagerly awaited each year, school administrators with improving US News rankings earn bragging rights while those schools on a downward trend must react vigorously to determine what has gone wrong. Parents and students use the rankings to determine to which schools to apply. By all measures, rankings have become critically important to how a college or university is perceived, particularly the US News rankings.
Critics of the US News ranking system are widespread and nothing new. For a summary of common critiques, read this excerpt from The Presidents Letter (dated May 10, 2007), developed by Lloyd Thacker of the Education Conservancy, and sent to college and university presidents in the United States in May 2007, concerning the U.S. News rankings:
“Among other reasons, we believe [...] rankings: imply a false precision and authority that is not warranted by the data they use; obscure important differences in educational mission in aligning institutions on a single scale; say nothing or very little about whether students are actually learning at particular colleges or universities; encourage wasteful spending and gamesmanship in institutions’ pursuing improved rankings; overlook the importance of a student in making education happen and overweight the importance of a university’s prestige in that process; and degrade for students the educational value of the college search process.”
Perhaps the simplest critique is that parents and students get overly focused on rankings during their college search, and ignore the most important thing: what college or university is the best “fit” for the student? With thousands of excellent colleges and universities in the United States, offering all kinds of programs and experiences, there are so many better ways to choose a school than whether it is in the top 20 in the latest US News rankings.
For international students in the US, finding the right fit in a US school is even more important. Since you will be far from home, largely on your own, and probably on a limited budget, setting up a life you will enjoy in a comfortable environment is critical. The key is to start your research early, and be clear and realistic about your educational goals and budget. To get you started in choosing a school in the US, visit the Study USA section of InternationalStudent.com. This will help you think through questions like, city vs. country, large public university vs. small private college, community college or four-year college, specialized school vs. liberal arts college, etc., and will put you on the track to finding the school that is the right fit for you.
In the next post, we’ll discuss an alternative rankings system proposed by Washington Monthly, a small, progressive DC-based magazine. Maybe you caught the editor on the Colbert Report last week? Check it out here.
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