International Student - Financing your second year in school

Question

Hi everyone,

I have adequate finances to cover the cost of attendance for my first year in school, but certainly do not have enough moolah for my second. The program that I have admitted to and would like to attend does not have a no US co-signer loan program. I am wondering, what happens when students are unable to pay for their second year in the program, due to a change in their financial situation (e.g. sudden death of co-signer, bankruptcy of family business) ? Would the school bar the student from registering for second-year classes? Or would the school be empathetic enough to work with the student to explore ways to help him/her complete the program, assuming that the student is making good progress ? Has anyone come across such a situation before? And if so, how did the school in question react to that particular situation?

Most b-schools do not require International Students to establish adequate funding for both years for issuing the I20. Neither is the International Student required to renew his/her visa at the end of the first year. I reckon that there could be a small percentage of Int'l Students who took the riskier approach of matriculating in a program even though s/he already knew that they would not be able to pay for his / her living expenses and tuition fees in the second year. There could also be a case of the student running into genuine financial difficulties at the end of the first year and hence, does not have the ability to continue with tuition fee payments.

I am putting this up here to get some views on this issue. On one hand, I thought I should throw caution to the wind by taking the riskier approach of matriculating in the school I was admitted to and hope that I would be able to find a way to pay my bills before the start of the second year; on the other, I felt that I was playing with fire and that I could end up with no savings and no degree, if I were disallowed to continue in the program without first paying for my fees. Should I hence proceed to matriculate with the school or not?

Grateful for all advice that I can get from fellow GMAT clubbers. Thanks!

imaProfessor · Answer

Don't take the risk.

I was caught in the same situation and I decided against this idea. The risk is very real. You certainly won't want to mar your MBA experience. Let the 2 years be as memorable and enjoyable as they can be. If you can't afford the costs of an elite school, then go to a lower-ranked school. You may not have as much access to top companies initially but if you set your mind to it, you can surpass your own limits and get the dream job that you want, even if you are up against grads from other super-elite schools.

While this is an unfortunate situation, you are going through an experience that all grads who have sailed through their lives (and based on my own observation, students who attend elite schools usu have had a pretty easy life with little or no hiccups - don't ask me how they wrote their essays on setbacks) won't have. It sucks 100%, but take it in a positive light. You would have had the chance to attend an elite school had it not been for your family background (which is through no fault of yours to be born into poverty). Don't let yourself be mired in more miserable than you already have now by going to a school and having to worry constantly about fees for the next year (when you could use the time to strategize how to snag that job/gal/guy or gatecrash an MBB party). I can tell how determined you are to succeed. You will - I am sure - make it in life. Good riddance to this school it's unable to have such an amazing candidate like you. Go apply to another school, or accept the other offer which appreciates you for your achievements and who you are. Be receptive to change, network actively and be the person that no one can afford  not  to know.

Jock4MBA · Answer

This scenario of funding secured for 1st year, but unsecured funding in 2nd year is very real among international students. Particularly students from developing countries who don't have US cosigner for loan. I posed the same Q to international students enrolled at BSchools and alumni, the gist of replies is that BSchools don't empathise with you, they make sympathetic noises, but won't come up with funding such as scholarship or hardship $. BSchools warn you in their small print that you need to secure funding and encourage you to do this at home. The rationale is that the hardship is self induced due to imprudent planning and predictable prior to your MBA. For BSchools, it is money talks. People drop out of MBAs when they can't pay year 2 tuition for this reason. Do not rely on BSchool administration to help you out of the pickle.

If your target BSchool doesn't have loan for internationals without US cosigner and you don't have sufficient funds, this BSchools is simply the wrong place for you due to its lack of commitment. Have you explained your situation to FinAid and ask them to come up with some $ to make funding work?

Good luck.

If your target BSchool doesn't have loan for internationals without US cosigner and you don't have sufficient funds, this BSchools is simply the wrong place for you due to its lack of commitment. Have you explained your situation to FinAid and ask them to come up with some $ to make funding work?

Good luck.

slumdog1000000 · Answer

Yes, I have. I was told that my case was re-reviewed by the Admissions Committee but they were unable to offer me some $ to close the gap in my finances. Not a single cent. Naturally I was disappointed, but I am not going to let this setback stop me from achieving my dreams. While I don't deny that getting an MBA from a gd school will give me a headstart in recruiting, I am also aware that the brand can only help me open one door - the door to my first job ; it is certainly not the be-all and end-all. I am glad that I have on hand another offer from a lower ranked school, which definitely does not share the same prestige as the b-school that has denied me all forms of finaid. After some thinking, it makes no sense why I should put my future on the line just cos of the perceived prestige that I can get from the better school. I won't want to go to school worrying about my finances for Yr2 from day 1 of Yr 1, only to have to wake up to the harsh reality that I will soon have to abort my MBA journey even before it's completed. Thank you, Jock4MBA and slumdog millionaire. You guys rock with those comments! I hope other Internationals facing similar dilemmas will face this discussion illuminating and helpful. There is a thin line between being foolhardy and courageous - you are being courageous by turning down the offer from the better school and spending 101% of your time milking opportunities from the lower-ranked school, and being foolhardy by assuming that financing issues will work themselves out. Self delusion can only rob you of your dreams and bankrupt you! Good luck to all Internationals (me included!) who are in the same boat. Believe in yourself :wink:

AN225 · Answer

I fully second that Jock4MBA wrote and congratulate on your smart decision.

There is no need to endanger your future just of two positions in the FT rating. Go to a more secure school and you'll achieve better results as you won't be thinking about where to get money every single day.

At the end of the day, there are only several really cherry-pick companies such as Google that interview students from megasuperultraproelite schools only. And so be it.

iAqua4 · Answer

Congrats on making the decision. I am kind of in the same boat and I was feeling the same about the school prestige and all.
But having spoken to few alumnis and considering the economy and other factors, it certainly seems wise to make this kind of decision. 
End of the day it is our ability that is going to take us ahead and two years post MBA, its that ability to get the foot in the door and make things work, which will count, whether we come from top 10 or top 20, which would not 'really' matter (ofcourse it does but as the work experience increases school repo may not be as useful, if you are not from an ivey).

MBAbot · Answer

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International Student - Financing your second year in school

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