Indian Admits 2009 : Keep all desi discussions here!

I am wondering how many of us have been dissuaded to apply this year by the loan w/o cosigner issue. I know couple of friends who have decided against applying this year or are only applying to schools guaranteeing loans w/o cosigner.
When I applied to Duke, they still had the loan, but as of now nothing is confirmed.

Nice to see that the desi thread has been reincarnated. Last year's thread can be followed at 103-t61846.

Good luck folks! Hope to see some of you at our spanking new building at Ross.

aakashganga

Hope u get an admit soon. Sorry to hear about your wife. I got an admit from Tepper and dinged at Tuck(after Interview). BTW, i am planning to move back to India and not join Tepper. I am already 32 and couldn't commit myself working in US forever(It would be the case if I take a loan of 150,000 and work towards repaying the amount for another 6-7 years).

I would join IIM executive MBA program and would be leaving USA by Jan end.

Thanks all...

wooster, that is a bold decision. Wish you all the best...Did you not consider applying to part time programs? That way you could pay off the loan much earlier.

Tough call, but I guess a wise decision given your situation. All the best !

Aakashganga, So sorry to hear about your situation! I sincerely pray the situation will be alright soon.


My basic profile: 30/M/ Indian from India/ 4 Y WE in commercial bank and consulting/ Decent EC.

I have received an admit from Tuck, the school of my dreams since I started my MBA journey. But they dont have any no-cosignor loan for internationals any more ( The loan was there when I submitted the app). DELC ( university educational loan of dartmouth) seemed an opportunity, but I had a conversation with fin aid there , and they need US co-signor for even that! As a back-up applied to IIM PGPX but was not even shortlisted for interview. I am getting older and have a family and am the only earning member. So at this point can't think of re-app again ( last year had some decent admissions but turned them down to reapply to Tuck, I was waitlisted last year).

So, here is almost the endgame of my MBA journey.

It is really sad to see so many admits facing problems because of the economic condition. Just sad... Guys, try your best... Getting admit into Tuck, Duke is not an easy thing (ask me), so try your best.. Think about deferring the admission if nothing works out...

filmcity - many congratulations on the Tuck admit. I remember you responded to my zero admits call last year. I am really really sorry to hear about the Tuck loans/financial aid stuff. If I were you, I'd try my level best to find a co-signer. Opportunities like these dont come very often.

All the very best for the future.

Thanks BSD! I am trying my level best. But the problem is that dont have any relative in US. And being a co-signor means, if I dont pay he'll have to pay ( someone correct me if I am wrong), or simply their credit limit will be constrained. So, it is improbable to find someone willing to take this risk.

Can someone please share all the clauses and responsibilities of being a co-signor. That will be very helpful.

I can fully empathise with your situation, am in the same boat with Duke admit. Of late, Duke has committed that in case its not able to arrange for loans, I can defer my admission.

In US, becoming a cosigner has several repurcussions :
1) The cosigner becomes liable to payback the loan in case you default. Frankly, this is a minor issue as the cosigner has a good idea of your abilities and school's reputation. Moreover, you and I will try our best not to default..desi genes I say.

2) The more serious issue is that the loan shows as debt on the cosigner's credit report, which may seriously dent his chances of securing loans for himself/his family for such purposes as house, education of child.

Though I know couple of people in US, I am wary of asking them because of 2).

Further, its really ironic and funny that schools such as Wharton are urging admits to arrange for funds from their home country. So much about diversity !!
I guess as of now only K/Chi/HBS are guaranteeing loans w/o cosigner. Hats off to these schools !!

@wooster..your decision makes sense to me. One of my fellow admits has decided to go ahead with ISB, solely because of the loan issue.

Normally who can be co-signers(Sister,Uncle..)?

filmcity, I feel for you. Do cosigners have to be relatives? I'm sure there must be some sort of cosigner business that matches up US people with good credit lines with international students going to top schools. If not, there should be!

Thanks Abhyudyay for the informative post. That underlines my fear. It is just improbable even to approach people with the request.

And Msday, the idea is interesting. But that means one needs to give a collateral to the US person willing to be a co-signor. How one provides that? Definitely a scope for good business in the market today ( if only one has the machinery for the diligence in recovery)

There might be another way. I believe there is a website that tries to be the "ebay" for loans. Something like prosper.com or zopa.com . You might be able to find something there (although I dont have any personal experience with this side and wouldn't know of its rules etc.)

Hi everyone,
I too got admit to Duke and since then have been working hard to find noco-signor loan options. I checked with various Indian banks and best terms are with Rs. 20 Lakh limit, 10.5% interest and seven year pay back period. I have sent a mail to Sallie mae inquiring about various possibilities like if they permit Canadian citizens or citizens of other countries to be co-signor or if they are willing to consider credit history in India on a case basis. However for me there are four central issues
1. cost of MBA will be around $150K. to pay back that kind of loan, it will be necessary to work in USA for some time post MBA. now what will be probability that despite MBA from top 10 school (no biases), one may not land a job in USA - considering worsening job situation in USA and world over? If one does not land a job in say USA, is it possible to move to say Canada? (the package will go down to say Can$ 90-120K). Let us be optimistic but not blind, so with the kind of situation there, this is very important issue as we are not sure what would be US Government policy with work permits (H1B).
2. rather than sitting idle and waiting for school to work some loan for us, can we think differently? let us say what has been historic default rate amongst students from particular schools? let me assume for a moment it is 2%. (Duke admits about 50 Indian students and let me say over last ten years, one student defaults out of each class). definitely bank will be concerned over this. but what if rest of students become co-signor for every other student? Say if there are 50 students, then 49 students will be co-signor for every person. so we are spreading risk. the bank is assured and as a group will add credibility to the process. In case of default also for outstanding debt of say $100K, the liability to rest of us will be $2000? sounds vague or unworkable but bankers out of the group may help in stream lining the proposal? If we agree on this then take up with the University and through it to the bank.( it will be very unlikely that 50 Top MBA's will disgrace and let go of benefits of being Alumni of MBA program- then what for MBA?) Can INDUS club be requested to be co-signor? (Sounds funny - but alumni power!!! )
3. the credit situation has worsened in Sept 2008. however I think loan issue owes to some legislation passed by US government which objected to preferential treatment to some banks. Now, I believe no cosigner loan option can be worked out only through negotiations and by entering into agreement. so that could be one reason which is causing unavailability of no-cosigner loan option. and if that be the case, then I do not see any hope for loan issue getting resolved in near future.
4. Keeping all these issues pending, let me say first year requires $80000 and second year requires $ 70000 (typical case). Can any of you shed light on ( with intention of getting I-20 and Visa)
a. how much money in cash, bank deposit in savings or term deposit needed (loan will be credited to and hence counted as part of yuor bank balance)
b. where can asset in gold be reflected (first year or asset for second year?)
c. Can asset in Land ownership be shown ? how and what will be procedure? against second year requirement? I am proposing it hoping some thing will work out in second year. if in worst case scenario, I have to go with say $40000 loan from some Indian Bank.
Know it is a long post but if some one can enlighten, then I hope that will cover comprehensively all issues probably lot of us are baffling with.
Thanks.

If u r doing it in India,go to an Auditor who has exp in this area with ur asset documents.He will get u a notarised document with all ur assets listed.Bascially,ur asssets value shud tally with the amount mentioned in the I20.

If u don't have enuf assets,pay some money(around 50k) to a educational consultancy,they will get the bank statements for u.Don't worry too much abt Visa.

Any person with a decent credit history can be a cosigner. Ideally, people who are 55+ should have less problem in cosigning, as they are already done with such main responsibilities as house, and education.
A fellow admit approached a cosigner, he has agreed to cosign.

But msday's idea makes sense. I had been thinking about it, I am willing to pay 4% of the loan amount to the person who cosigns for me .