Now, what you've all been waiting for... GMAC announced today a new loan program for international students. To quote the press release:
"Responding to a request from the Graduate Management Admission Council® (GMAC®), a leading international bank has joined with experienced service providers in student financial aid to create a new pilot lending program for international students who attend graduate business schools around the world.
"The pilot is prepared to provide at least $500 million in loans to students in about 40 business schools in the United States and Europe, beginning with the 2009-10 academic year.
"International students, who comprise a high percentage of all U.S. graduate business school enrollment, have been especially hard-hit by the financial crisis. They are not eligible for federal loans and several major lenders have terminated the "no-cosigner" student loan programs that were widely used by this group.
"The new lending structure is designed to be school-centric and school-controlled and is not dependent on any particular bank or group of banks. Students who borrow under the program will not be required to secure co-signers. Schools involved in the program will not own loans, incur up-front costs, or have liability for individual loan defaults.
"A key participant in the project is Kevin Moehn of Moehn Management, Inc., a new company established to bring lending organizations together to facilitate student loans through a program that "delivers a sustainable and dependable structure for business schools to finance international students.'" Emphasis added.
The press release did not indicate which 40 schools will participate in the program.
