Loan options to fund a US MBA

MBA
1

Hi, I am trying to process a loan to fund my MBA in the US, and here are some of my experiences. Feel free to post more information to the thread which can help make the loan processing easier. 1. Most US banks require a US cosigner …

2

Hi,

I am trying to process a loan to fund my MBA in the US, and here are some of my experiences. Feel free to post more information to the thread which can help make the loan processing easier.

  1. Most US banks require a US cosigner (US citizen or permanent resident i.e. Green Card holder)
  2. Some banks insist on having a Social Security Number to process the application. This is not possible if you are not in the US already
  3. There is now a mandatory application disclosure clause for all US banks that provide loans, and this disclosure document comes with a standard format.
  4. Global Student Loan Corporation has a tie-up with HSBC to offer loans to international students. No U.S. cosigner is required, but a cosigner required is needed from your country of origin. More information: Global Student Loan Corporation - international student loan, education loans for international students, no U.S. cosigner required, student loan program, student loan services
  5. Credila is another lender that specializes in student loans. HDFC is a stakeholder in this organization, and but they have an upper limit of Rs. 20,00,000 (apparently, this is now raised to Rs.40,00,000 . They respond pretty quickly to the online form. More information: :: Credilas Education Loan India Web Site ::.
  6. There is some interesting advice on student loans in general from Citibank's website: https://www.studentloan.com/pay_for_college/studentloans101.htm

My experiences with some US banks (with a US cosigner):

  1. Wells Fargo has an upper limit of 35K per year max. for international students, and also requires an SSN number
  2. Chase Student Loans too require an SSN number
  3. Citizen's bank does process a loan, by generating a temporary admin. SSN no. (You can talk to the agent on the phone to help you generate this no.) Then, you need to complete a paper application, which you can request to be emailed to you. If the agent does not appear to be ready to email and insists on postal mail, you can push the request further to their manager. More info from their website (Private College Loans: Get a Private Education Loan from Citizens Bank | Citizens Bank)
  4. Citibank does process the loan online. You need to use your co-signor's information in the address field, and they assign a temporary number in place of the SSN #. You can mention that you have lived for 0 months in the US address, and then enter your India address in the form.
    The only catch though is that they have a higher interest and loan processing fee rate.
3

Good,, I am in India and if I go to USA/UK for MBA, cant I take loan from indaian banks,, icici/sbi/hdfc...
And u said about loans from US bank , are their branches in India??
How to go about taking in thisloan from US bank being in India?
Also does bschool help us in this regards??
How much time it will take to get the loan sanctiones.. also does it include accomodation/fooding/entertainment/miscallenious or just only tution??

4

Hi abhishekroshan1,

You can take a loan from Indian banks to fund your education abroad. However, there is an upper cap of Rs. 20,00,000 on the loan amount, which recently is supposed to have been raise to Rs. 40,00,000 (source: credila.com)

The US banks which offer international student loans work independent of their Indian arms. So, I don't think you can approach their branches in India. For e.g. you cannot approach Citibank branches in India for help with a student loan application with Citibank in the US.

Your business schools is a good place to start your processing. There are school specific tie-ups that could ease your loan process.

Student loans do include living expenses, but these are limited by the amount as estimated by your respective B School.

Most online educational loan processing times range from under a week to over 3 weeks. Depends on the bank really. The paper version may take more time.

Good,, I am in India and if I go to USA/UK for MBA, cant I take loan from indaian banks,, icici/sbi/hdfc...
And u said about loans from US bank , are their branches in India??
How to go about taking in thisloan from US bank being in India?
Also does bschool help us in this regards??
How much time it will take to get the loan sanctiones.. also does it include accomodation/fooding/entertainment/miscallenious or just only tution??
5

Hi ,
Can you kindly through some light on the availability of loans for canadian programmes .




Regards

6

Anybody who has worked with Canadian lending institutions previously?



Hi ,
Can you kindly through some light on the availability of loans for canadian programmes .




Regards
7

Hi Popper,
Have you taken any loan from Citibank US???
Can you please share your experience? How to start it and whom to contact?

8

Hi Soumita,

You can initiate the student loan with Citibank at studentloan.com. Please note that this is Citibank USA, and you require a cosigner for your loan who is either a US Citizen or US permanent resident (green card holder)

Regards,

popper.

9

Thanks Popper!!

Can you briefly describe the process and the no of days it takes to process the loan.
Also, it would be great if you can blog your experience with Citibank so that newcomers may find it handy to start with..

Thanks,
Mini

10

Hi Mini,

Regarding the process with Citibank, there is not much I can add than in my previous post. Here is a summary again:

1. Citibank does process the loan online. You can start the process at www.studentloan.com website.

2. When you mention you are an international applicant without SSN, the system allots you a temporary no. that the bank uses in lieu of an SSN.

3. Where you need to fill your address in the application form, you need to use your co-signor's information in the address field. You can mention that you have lived for 0 months in the US address, and then enter your India address in the form under the previous address section.

4. After you complete the form, your cosigner will receive an email asking for his approval and other details including SSN # and income.

5. After the cosigner information is complete, it may take a couple of days for the bank to decide on the approval. If your loan is approved, you will receive an approval disclosure with details of the interest rate and loan fee (Citibank usually has a high interest rate and also loan fee)

6. After you and your cosigner accept the approval disclosure, the bank will coordinate with your school regarding your admission, cost of attendance, and disbursement details.

7. At the last step, you will need to accept the final loan terms again before Citibank releases the funds to your school in your name.

The only catch though is that they have a higher interest and loan processing fee rate.

Regards,

popper.

11

Thanks Popper. That was a great help.... If I need to take a loan of 60k dollars, how many years will it take for the loan repayment, any idea?? Should I take for just 1 year or both the years?

12

From my understanding, you can apply a loan only for your first year cost of attendance (Tuition + Living Exp.) With Citibank the maximum time period you can choose is twenty years. They have multiple options for when your repayment schedule starts. More information on that is here: https://www.studentloan.com/pay_your_loans/repayoptions.htm

Regarding the second year loan, I believe this is only possible later on after starting your first year.

13

Hi Popper,

Thanks for this!! I am planning to go for a loan of 100,000 USD(for 2 years i.e. around 50,000USD for first year)...
I wanted to know the interest they charge usually... I am planning to repay it within 4 years after I start jobbing.. Cant bring back baggage from US :)
Also, how long does it typically take to get a loan approved?
Should I just start up with the online application directly or I need to call them up etc...

Thanks,
Mini

14

Also, does the co-signor have to pay any part of the rate of interest or loan processing fee??

15

Thats an interesting article.. Thanks!!

16

A little clarification on the SSN-- it is only given when you get paid i.e. if you have a proper job. As a student, you won't get one, but you can still apply and get a rejection letter. This doc will suffice in place of an SSN. Also, the SSN is used to check your credit-worthiness which is a big thing in America.

17

But does it affect Visa decisions in case we take loans from USA banks? Any idea?

18
soumitag Says
But does it affect Visa decisions in case we take loans from USA banks? Any idea?


Not that I've heard of. Visa officers are concerned with the fact that you have the ability to pay your fees, whether loan from India or US is irrelevant. However, unless the school is sponsoring it, getting a personal loan from US bank is kinda tough if you don't have anybody there.
19
Hi,

I am trying to process a loan to fund my MBA in the US, and here are some of my experiences. Feel free to post more information to the thread which can help make the loan processing easier.

  1. Most US banks require a US cosigner (US citizen or permanent resident i.e. Green Card holder)
  2. Some banks insist on having a Social Security Number to process the application. This is not possible if you are not in the US already
  3. There is now a mandatory application disclosure clause for all US banks that provide loans, and this disclosure document comes with a standard format.
  4. Global Student Loan Corporation has a tie-up with HSBC to offer loans to international students. No U.S. cosigner is required, but a cosigner required is needed from your country of origin. More information: Global Student Loan Corporation - international student loan, education loans for international students, no U.S. cosigner required, student loan program, student loan services
  5. Credila is another lender that specializes in student loans. HDFC is a stakeholder in this organization, and but they have an upper limit of Rs. 20,00,000 (apparently, this is now raised to Rs.40,00,000 . They respond pretty quickly to the online form. More information: :: Credilas Education Loan India Web Site ::.
  6. There is some interesting advice on student loans in general from Citibank's website: https://www.studentloan.com/pay_for_college/studentloans101.htm

My experiences with some US banks (with a US cosigner):

  1. Wells Fargo has an upper limit of 35K per year max. for international students, and also requires an SSN number
  2. Chase Student Loans too require an SSN number
  3. Citizen's bank does process a loan, by generating a temporary admin. SSN no. (You can talk to the agent on the phone to help you generate this no.) Then, you need to complete a paper application, which you can request to be emailed to you. If the agent does not appear to be ready to email and insists on postal mail, you can push the request further to their manager. More info from their website (Private College Loans: Get a Private Education Loan from Citizens Bank | Citizens Bank)
  4. Citibank does process the loan online. You need to use your co-signor's information in the address field, and they assign a temporary number in place of the SSN #. You can mention that you have lived for 0 months in the US address, and then enter your India address in the form.
    The only catch though is that they have a higher interest and loan processing fee rate.


Hi there,

you say , "...Credila is another lender that specializes in student loans. HDFC is a stakeholder in this organization, and but they have an upper limit of Rs. 20,00,000 (apparently, this is now raised to Rs.40,00,000 ..."

How did you come to know that Credilla has raised the upper cap to INR 4M? Credilla's site still says that the upper cap is INR 2M..

Finally, where did you arrange your finances from (assuming you did join the b-school you got admission in)?

-Manish
20

Hello folks,

I am planning to pursue my MBA in Wharton School of Business,PA,USA.While the fees is too high and scholarship is competitive to get I looked over internet for study abroad loans and too happy to have found The Paras Education Foundation through www.isloan.org. They provide Soft Term Loans for study abroad @ interest rate 3% to 5% p.a. ,without any collateral security.  I am applying through them as they also claim to process loan Within 2 to 4 weeks.Thought it might help you guys too!