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INSEAD & Financing / Debt!

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INSEAD & Financing / Debt! [#permalink] New post 03 Jun 2010, 14:05
I got accepted for the Jan '11 intake and currently the tuition costs are looming large on my mind. I'd like to know how other people are approaching it, and whether this has any weight on your acceptance of the offer.

Basically I can pay for living expenses and keep an 'oh-god-economy-sux' buffer in the bank, but that still leaves me having to finance nearly the entire 52,000 euro tuition payment with a loan (if I get it, but that's another story.)

With a good amount of luck I could swing a scholarship, summer internship, and sign-on bonus to cut this down to half almost immediately on graduation. On the other hand, a worst case scenario has me with a 1,000 monthly bill for the next five years. (If you can't tell by now I'm not a huge fan of debt, leveraged or not!)

What are other people's approaches here? According to adcom stats I won't be the only one self-financing. Am I the only one without a rich, benevolent family member? :)
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Re: INSEAD & Financing / Debt! [#permalink] New post 04 Jun 2010, 07:27
monkeypunch wrote:
I got accepted for the Jan '11 intake and currently the tuition costs are looming large on my mind. I'd like to know how other people are approaching it, and whether this has any weight on your acceptance of the offer.

Basically I can pay for living expenses and keep an 'oh-god-economy-sux' buffer in the bank, but that still leaves me having to finance nearly the entire 52,000 euro tuition payment with a loan (if I get it, but that's another story.)

With a good amount of luck I could swing a scholarship, summer internship, and sign-on bonus to cut this down to half almost immediately on graduation. On the other hand, a worst case scenario has me with a 1,000 monthly bill for the next five years. (If you can't tell by now I'm not a huge fan of debt, leveraged or not!)

What are other people's approaches here? According to adcom stats I won't be the only one self-financing. Am I the only one without a rich, benevolent family member? :)


No you arent - I havent even finalized my loan yet. But while 52K euros arent chump change, over a 30 yr working career it most certainly is chump change. I have never had debt of my own in the past but I am surprisingly relaxed about this future debt.
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Re: INSEAD & Financing / Debt! [#permalink] New post 05 Jun 2010, 12:28
Hmm, was the other comment self-deleted or is this a pro-MBA conspiracy? :)
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Re: INSEAD & Financing / Debt! [#permalink] New post 06 Jun 2010, 07:22
Prodigy Finance, a UK based company founded by INSEAD grads, offers loans to students admitted to INSEAD regardless of nationality. The avg loan they provide is 30000 euros.

google: "prodigy finance" (sorry i need to have 5 posts on gmatclub before i can post a link to their website)

Has anyone had any experience with Prodigy? Are the loans guaranteed ?
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Re: INSEAD & Financing / Debt! [#permalink] New post 13 Jul 2010, 21:20
I wrote to prodigy the day I got my admit and I still havent heard from them despite multiple followups. The only response I get is that we will look into your application later, were busy currently. Its almost 45 days now..

Has any INSEAD Jan 2011 admit heard from them as yet.
Did any of you June admits also encounter the same situation.
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Re: INSEAD & Financing / Debt! [#permalink] New post 13 Jul 2010, 23:05
I submitted my Prodigy app last week and got an automated response:

Thank you for your application with us. Please note that we are currently processing July 11 students and we will be processing your class’s applications by the end of July.

I think I'll give HSBC and NatWest a try soon. I heard not-so-good things about HSBC but met an admit last night who said her approval from them was a piece of cake (she banks with them, as do I.) I've heard better things about NatWest, but we'll see!
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Re: INSEAD & Financing / Debt! [#permalink] New post 17 Jul 2010, 20:57
Just heard from Prodigy Theyve asked to wait till the 26th.
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Re: INSEAD & Financing / Debt! [#permalink] New post 01 Aug 2010, 23:51
Hi everyone, thanks for your messages below.
I am admitted for the INSEAD MBA J12 Class starting in Singapore.

I am currently working in Australia under a 457 visa (sponsorship). I am not a Permanent Resident of Australia. My chances of becoming a Resident have been reduced due to last changes on immigration Policies (despite of my skills, work, etc); however, is still not impossible that I get the residency after September, but it will imply a big movement in terms of time and money investment, so I would like to be clear about how useful it would be in terms of getting a loan for the MBA.
My home country is in South America, and there are no loans to MBA students over there.

So I would like to explore (in advance, as you might see) the possibilities here, in Australia. My questions at this stage are the following, if anyone can help me:

1- Does anyone know about MBA loans for 457 visa holders? I can prove a quite good record of income in Australia, working for a quite important company, etc

2- How does it work for Permanent Residents (or citizens of Australia)? Do they get MBA loans "easily", for overseas Schools as the INSEAD? What banks should I contact? (I saw that Natwest could be an option) What interest rates?

If anyone would like to meet for lunch or coffee to discuss further, I would be very grateful as well. I currently work in North Sydney. Not sure if I can post my email here?

Many thanks in advance and wish the best for those admitted for the J11 intake as I saw below.
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Re: INSEAD & Financing / Debt! [#permalink] New post 02 Aug 2010, 00:00
Hey guys. Any idea what sorts of questions Prodigy asks your reference person? Since only one reference person can be a family member, I want to make sure that I am comfortable with the kind of information Prodigy seeks to verify before giving a name of a reference person.

Thanks!

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Re: INSEAD & Financing / Debt! [#permalink] New post 09 Aug 2010, 20:44
anyone here taken a study loan on top of home loan? i'm from india and have a home loan running with Euro 500 monthly instalment (fixed for 3yrs), any idea if that makes the chance of edu loan very low?

somewhat like monkeypunch - I can pay for living expenses, home loan and keep an 'oh-god-economy-sux' buffer in the bank and may be manage up to Euro 10K for tuitions, but thats max
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Re: INSEAD & Financing / Debt! [#permalink] New post 12 Aug 2010, 06:57
hey guys
Does any of you apply for any Insead scholarships as one of MBA financing option?
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Re: INSEAD & Financing / Debt! [#permalink] New post 31 Aug 2010, 06:41
Just following up on this thread - I applied to Prodigy for a loan some time back (in June - but they didn't process the 11'D apps until mid-July) and had my loan accepted. In terms of the questions they ask personal referees, I don't think they actually contacted anyone! They were really easy to deal with, and got the loan sorted very quickly once the decision had been made (around July 26th).
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Re: INSEAD & Financing / Debt! [#permalink] New post 31 Aug 2010, 07:02
Hi guys, many thanks for the tips, just asking again, any Australian here that did/will do the MBA INSEAD? CHeers.
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Re: INSEAD & Financing / Debt! [#permalink] New post 08 Sep 2010, 10:59
johnstan wrote:
Just following up on this thread - I applied to Prodigy for a loan some time back (in June - but they didn't process the 11'D apps until mid-July) and had my loan accepted. In terms of the questions they ask personal referees, I don't think they actually contacted anyone! They were really easy to deal with, and got the loan sorted very quickly once the decision had been made (around July 26th).



Hey johnstan

Thanks for the info. Could you also tell please how big (approx) the amount was and what interest they're going to charge?
(That may be a too personal question for you, I'm sorry if it is so)

Thanks in advance

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Re: INSEAD & Financing / Debt! [#permalink] New post 12 May 2014, 03:55
Hi all,

I work for Prodigy Finance and thought it'd be helpful to clarify/answer some questions here. Funding for MBA loans is contingent on: 1)your acceptance into INSEAD, 2) a conditional loan offer and the right supporting documentation, and 3) fundraising from alumni, friends of the school, and "impact investors." So some applicants in the past have unfortunately been placed on hold for somewhat lengthy periods of time. We apologise for that inconvenience. That said, now that Prodigy is in its eighth year, we are gaining momentum in our fundraising efforts--and are pleased to be funding 20-25% of each year's INSEAD class.

Regarding max loan sizes and representative rates, these may change slightly each year, so it is best to check our website. Currently, the max rate for a full-time MBA at INSEAD is 62,500 EUR. The interest rates vary (6.5-12%). We do our best to ensure our rates are internationally competitive.

Lastly, I would like to say that Prodigy's co-founders are all INSEAD grads who experienced firsthand the difficulty of getting an international loan. So we have shaped our company (and customer service) specifically with premium business schools in mind.

I hope this information helps. Good luck with your b-school and loan applications!

Cheers,
Charlie and the Prodigy Finance team
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Re: INSEAD & Financing / Debt! [#permalink] New post 13 May 2014, 00:45
prodigyfinance wrote:
Hi all,

I work for Prodigy Finance and thought it'd be helpful to clarify/answer some questions here. Funding for MBA loans is contingent on: 1)your acceptance into INSEAD, 2) a conditional loan offer and the right supporting documentation, and 3) fundraising from alumni, friends of the school, and "impact investors." So some applicants in the past have unfortunately been placed on hold for somewhat lengthy periods of time. We apologise for that inconvenience. That said, now that Prodigy is in its eighth year, we are gaining momentum in our fundraising efforts--and are pleased to be funding 20-25% of each year's INSEAD class.

Regarding max loan sizes and representative rates, these may change slightly each year, so it is best to check our website. Currently, the max rate for a full-time MBA at INSEAD is 62,500 EUR. The interest rates vary (6.5-12%). We do our best to ensure our rates are internationally competitive.

Lastly, I would like to say that Prodigy's co-founders are all INSEAD grads who experienced firsthand the difficulty of getting an international loan. So we have shaped our company (and customer service) specifically with premium business schools in mind.

I hope this information helps. Good luck with your b-school and loan applications!

Cheers,
Charlie and the Prodigy Finance team


Hi Charlie,
I am glad to have someone here from Prodigy Finance. Welcome!
I would like to know the process of lending, because its timing may seriosly impact a student's decisions. I expect that there might be some problems.

For example: INSEAD's R1 deadline for class matriculating in Sept-2015 is September 24th, 2014. The decision date is November 28th.
The AdComs asks applicants to comit a deposit amount equal to 7,000 EUR (huge chunk of cash if compared to US MBA) to reserve a sit about 4 weeks after offer of admission was issued, so it is December 26th (4 weeks after decision notification which is November 28th).

There is a risk that after being accepted and reservation amount is paid, an applicant would not be able to get financing from ProdigyFinance. So ultimately, he/she may comit 7,000 EUR and at the end find out that financing is not available, which means he/she looses 7,250 EUR (application fee and deposit).

What an ordinary accepted applicant should do?
1) Contact the ProdigyFinance team after decision date, which is November 28th and within 4 weeks get his/her request approved and a guarantee to have an available funding? Well, and then decide whether to pay or not the commitment deposit.
2) Contact the ProdigyFinance team before/after applying, and if accepted to INSEAD, by that time have a ProdigyFinance decision (total loan amount and rate%) and then to decide if he/she has sufficient funding to pursue the degree and commit 7,000 EUR deposit.

I wwould like to see a streamlined process and would NOT like to loose money due to different obstacles and stringent requirements of the school.
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Re: INSEAD & Financing / Debt! [#permalink] New post 16 May 2014, 04:14
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Hi PTK,

Thanks for your question. I've passed on your inquiry to our Student Operations team, and this is what they said:
"They will not be able to apply without confirmation of admission, so they will have to go with option #1.

We will make an offer based on the information in their application (aim is within 2 days) and have been able to fully finalise the loan within 4 weeks in many cases - mostly dependent on how quickly they provide us with the supporting documents required. As long as their supporting documents will line up with their application info and they don't have a negative credit history, there is no reason for the loan not to be finalised."

Cheers,
Charlie
Re: INSEAD & Financing / Debt!   [#permalink] 16 May 2014, 04:14
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