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Join us for a live Ask Me Anything (AMA) session with Juno’s Co-Founder, where we’ll break down everything you need to know about financing your MBA in today’s rapidly changing landscape.
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12 Jan 2016, 12:01
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AnnouncementLive Q&A with Prodigy Finance
Congratulations to all new Admits!! We are delighted to inform you that we are holding a chat session with representative of Prodigy Finance on forum for the applicants who are considering Prodigy to fund their MBA education. This is the best opportunity for you to get to know about various education loan options provided by ProdigyFinance. You are also welcome to discuss your questions regarding eligibility criteria, funding limits, terms and conditions, interest rate, repayment tenure, country specific rules, etc.
Date: January 21, 2016
Time: 8 AM Pacific Time
Place: GMAT Club Chat Room https://gmatclub.com/gchat/
Presenter: Zack Hirschfeld - Student Relations Manager, Prodigy Finance.
Prodigy Finance&dates=20160121T154000Z/20160121T170000Z&details=GMAT Club Live Chat with Prodigy Finance&location=GMATClub chat room" target="_blank">
About Prodigy Finance and Zack Hirschfeld
Since 2007, Prodigy Finance has been revolutionising student finance. Our innovative model allows us to offer loans to international postgraduate students at leading universities and business schools. Through out community platform, alumni and other investors earn market-rate returns, while students gain access to higher education they otherwise may not have been able to finance.
Zack Hirschfeld is Prodigy Finance's Student Relations Manager. He was born in San Francisco, explored 35 countries across 5 continents, and now lives in New York. He has a degree in International Relations from Bucknell University. Zack loves his job, and believes it's a great privilege to speak with students from around the world, helping them to reach their goals.
25 Jan 2016, 10:26
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Hello Everyone. Thanks very much for participating in our recent live Q&A with Prodigy Finance's Student Relation Manager - Zack Hirschfeld. Here is summary and transcript of the chat for those who missed the event.
Can you tell me on what basis how much it is decided to allocate loan amount to the applicant?
Prodigy_Zack: Sure. Each prospective borrower completes an application (takes about 15-20 minutes to complete). With all information in this application, we use an innovative scorecard model to determine your Total Debt Burden (how much you can realistically be expected to afford to repay). Examples of information include: pre-MBA salary, past credit history, what school you are going to, what country you are from, GMAT score, etc.
Does the loan cover living expenses too?
Prodigy_Zack: Yes, we do cover living expenses in addition to tuition.
I'd like to know if any collateral is needed for getting a loan without having an US cosigner for an indian applicant
Prodigy_Zack: No collateral is ever needed. In fact, Prodigy will not accept any form of co-signor or collateral. We only assess YOU -- the individual student.
If a student have a low gpa and lets say average academics but he does crack a decent college ; will this affect his chances for the loan?
Prodigy_Zack: We do not take GPA into account, only GMAT and which school you will be attending.
For international applicants, what type of documentation will be required to be presented when requesting a loan?
Prodigy_Zack: Thanks, bppressa. Here's the link to all supporting documentation necessary: https://prodigyfinance.com/students_faq#category_105 You do not need to provide it all up front (before you find out your loan amount and interest rate), but you will need to provide proof of documentation before the loan is disbursed.
How are rates determined? I read that it depends on individual. Could you give us more information. Does pre-mba salary affects rates?
Prodigy_Zack: Rates are determined similar by country of residence, the school you're going to, even the extent of prior work experience. Salary can influence rate but it is mainly there to determine loan amount. Every data point we ask for can influence loan amount and interest rate.
Does everybody who applies and is qualified for a loan get the maximum loan amount they request?
Prodigy_Zack: We try to give every student 100% of what they ask for. However, often a student will not be able to afford all of what they want (based on our model). In this case, we will offer the student a reduced amount and ask the student to come up with the remainder of his or her budget with savings, scholarship or another means besides a loan. Some students unfortunately get declined by our model. However, more than 80% are approved.
Have you seen/heard many students be able to use the "loan approval" letter at the US consulate to secure the F1 visa stamp?
Prodigy_Zack: In terms of visas, many students apply to Prodigy once they've gained admission but before they have secured a visa. Students are welcomed to do this. If approved, we will send a "conditional approval" letter, with which the student can use on their visa application.
What are the factors you look for when sanctioning a loan less than asked for? And how much can my savings help?
Prodigy_Zack: Overall, we ask students to provide us a 2-year budget (for 2 year programs) based on the school's official Cost of Attendance, which includes all tuition, fees and expected living expenses. We will only offer a loan amount that is lower than desired by the student if we can understand that the student will be able to cover the gap in his/her budget by another means.
An Indian applicant is definitely having lower salary... so this is for sure Indian applicant on an average can’t depend on loan from prodigy for at least full tuition cost? How you compare Indian guys salary in your loan model?
Prodigy_Zack: Sure. Because we deal with many students from around the world, we understand reduced salaries and currency devaluation. As such, we will take this fact into consideration when assessing students.
If we apply right after receiving an offer, is there any chance that the loan is granted in time in order to pay the commitment/installment fees using loan money?
Prodigy_Zack: Unfortunately we cannot cover deposits.
Applicant's current savings pool/bank balance is not a factor in the loan decision process?
Prodigy_Zack: Savings will only matter when we are trying to determine if you are able to cover the entire Cost of Attendance budget. As a policy, we can only provide up to 80% of Cost of Attendance. As such, you will need to use either some savings, scholarship, or company sponsorship.
How much having assets such land and apartment affects our candidacy? Especially interest rates.
Prodigy_Zack: We can only evaluate these assets if they are liquidated as savings and use it to determine your ability to cover the Cost of Attendance budget. Having more or less assets will not affect your rate.
If I ask for 20,000 loan and also have 20,000 in savings. Will that help in getting a lower rate? Also are my savings and a family member’s savings treated equally? I got the impression from your reply that savings can actually be bad.
Prodigy_Zack: Savings are never bad. They simply are not a major factor in increasing your loan amount or decreasing your rate. We always will extend to you the maximum offer allowable by our model (no matter if you say you can cover more of the Cost of Attendance with savings). I urge my students to let us know how much money in total you have in savings, and then how much you would like to use towards your Cost of Attendance. We will let you know then how much of that savings you will need to use, based on our credit assessment.
You said about 20% of loan applications are declined. What are the main reasons for a loan application to be declined?
Prodigy_Zack: We decline students if our model shows they cannot reasonably pay back the minimum amount they need to cover Cost of Attendance. Also, some students have outstanding debt and liabilities, which can take up their entire Total Debt Burden, based on our model.
You mentioned 80% is the limit for tuition fee loan. Is there a similar cap on living expenses?
Prodigy_Zack: 80% of Cost of Attendance includes living expenses. For example, if tuition is $80k and living expenses are $20k, we can fund up to $80k ($100k x 0.8)
Is there any deadline for application? And if savings are not a factor, then why we need to report it?
Prodigy_Zack: There are no deadlines, but applicants should submit their application at least 1 month before they need funds to be disbursed. I tell my students to submit much earlier than that, especially because documents like credit reports can be difficult to obtain in some countries.
You mentioned pre mba salary as a factor. so do you differentiate it for an entrepreneur and salaried person because as an entrepreneur you might be earning less than a salaried person initially
Prodigy_Zack: if you are an entrepreneur that is purposely giving yourself a lower salary, we can take a closer look at your situation and re-assess. We have dealt with this situation in the past.
You mentioned about credit report. It can be difficult to acquire it in my country, because organizations provide them directly to loan providers. Also since I never took a loan not even a credit I do not have a credit history. It adds to my difficulty to get a credit report. What can I do?
Prodigy_Zack: If you do not have credit or are having trouble getting a credit report, we can accept a "letter of good standing" from your bank. Overall, we use either document to determine if you have a solid financial history. Hard to give "pointers" but I would just recommend being as transparent as possible and fill every part of the application out fully. Tell us everywhere you've lived and worked, what your highest salary was, and all debts / liabilities the better we can get to know you as an individual, the better chances we can help you!
How many days would the entire procedure take roughly?
Prodigy_Zack: It takes about 15-20 minutes to complete the application. From then, you will hear within 2-3 business days if you are approved, and what the loan amount and interest rate is. From there, we will ask for supporting documentation (proof) -- as soon as you can upload those documents we will prepare your loan and send you a loan agreement to sign electronically.
Chat Transcript
Prodigy_Zack: Sure. Each prospective borrower completes an application (takes about 15-20 minutes to complete). With all information in this application, we use an innovative scorecard model to determine your Total Debt Burden (how much you can realistically be expected to afford to repay). Examples of information include: pre-MBA salary, past credit history, what school you are going to, what country you are from, GMAT score, etc.
Does the loan cover living expenses too?
Prodigy_Zack: Yes, we do cover living expenses in addition to tuition.
I'd like to know if any collateral is needed for getting a loan without having an US cosigner for an indian applicant
Prodigy_Zack: No collateral is ever needed. In fact, Prodigy will not accept any form of co-signor or collateral. We only assess YOU -- the individual student.
If a student have a low gpa and lets say average academics but he does crack a decent college ; will this affect his chances for the loan?
Prodigy_Zack: We do not take GPA into account, only GMAT and which school you will be attending.
For international applicants, what type of documentation will be required to be presented when requesting a loan?
Prodigy_Zack: Thanks, bppressa. Here's the link to all supporting documentation necessary: https://prodigyfinance.com/students_faq#category_105 You do not need to provide it all up front (before you find out your loan amount and interest rate), but you will need to provide proof of documentation before the loan is disbursed.
How are rates determined? I read that it depends on individual. Could you give us more information. Does pre-mba salary affects rates?
Prodigy_Zack: Rates are determined similar by country of residence, the school you're going to, even the extent of prior work experience. Salary can influence rate but it is mainly there to determine loan amount. Every data point we ask for can influence loan amount and interest rate.
Does everybody who applies and is qualified for a loan get the maximum loan amount they request?
Prodigy_Zack: We try to give every student 100% of what they ask for. However, often a student will not be able to afford all of what they want (based on our model). In this case, we will offer the student a reduced amount and ask the student to come up with the remainder of his or her budget with savings, scholarship or another means besides a loan. Some students unfortunately get declined by our model. However, more than 80% are approved.
Have you seen/heard many students be able to use the "loan approval" letter at the US consulate to secure the F1 visa stamp?
Prodigy_Zack: In terms of visas, many students apply to Prodigy once they've gained admission but before they have secured a visa. Students are welcomed to do this. If approved, we will send a "conditional approval" letter, with which the student can use on their visa application.
What are the factors you look for when sanctioning a loan less than asked for? And how much can my savings help?
Prodigy_Zack: Overall, we ask students to provide us a 2-year budget (for 2 year programs) based on the school's official Cost of Attendance, which includes all tuition, fees and expected living expenses. We will only offer a loan amount that is lower than desired by the student if we can understand that the student will be able to cover the gap in his/her budget by another means.
An Indian applicant is definitely having lower salary... so this is for sure Indian applicant on an average can’t depend on loan from prodigy for at least full tuition cost? How you compare Indian guys salary in your loan model?
Prodigy_Zack: Sure. Because we deal with many students from around the world, we understand reduced salaries and currency devaluation. As such, we will take this fact into consideration when assessing students.
If we apply right after receiving an offer, is there any chance that the loan is granted in time in order to pay the commitment/installment fees using loan money?
Prodigy_Zack: Unfortunately we cannot cover deposits.
Applicant's current savings pool/bank balance is not a factor in the loan decision process?
Prodigy_Zack: Savings will only matter when we are trying to determine if you are able to cover the entire Cost of Attendance budget. As a policy, we can only provide up to 80% of Cost of Attendance. As such, you will need to use either some savings, scholarship, or company sponsorship.
How much having assets such land and apartment affects our candidacy? Especially interest rates.
Prodigy_Zack: We can only evaluate these assets if they are liquidated as savings and use it to determine your ability to cover the Cost of Attendance budget. Having more or less assets will not affect your rate.
If I ask for 20,000 loan and also have 20,000 in savings. Will that help in getting a lower rate? Also are my savings and a family member’s savings treated equally? I got the impression from your reply that savings can actually be bad.
Prodigy_Zack: Savings are never bad. They simply are not a major factor in increasing your loan amount or decreasing your rate. We always will extend to you the maximum offer allowable by our model (no matter if you say you can cover more of the Cost of Attendance with savings). I urge my students to let us know how much money in total you have in savings, and then how much you would like to use towards your Cost of Attendance. We will let you know then how much of that savings you will need to use, based on our credit assessment.
You said about 20% of loan applications are declined. What are the main reasons for a loan application to be declined?
Prodigy_Zack: We decline students if our model shows they cannot reasonably pay back the minimum amount they need to cover Cost of Attendance. Also, some students have outstanding debt and liabilities, which can take up their entire Total Debt Burden, based on our model.
You mentioned 80% is the limit for tuition fee loan. Is there a similar cap on living expenses?
Prodigy_Zack: 80% of Cost of Attendance includes living expenses. For example, if tuition is $80k and living expenses are $20k, we can fund up to $80k ($100k x 0.8)
Is there any deadline for application? And if savings are not a factor, then why we need to report it?
Prodigy_Zack: There are no deadlines, but applicants should submit their application at least 1 month before they need funds to be disbursed. I tell my students to submit much earlier than that, especially because documents like credit reports can be difficult to obtain in some countries.
You mentioned pre mba salary as a factor. so do you differentiate it for an entrepreneur and salaried person because as an entrepreneur you might be earning less than a salaried person initially
Prodigy_Zack: if you are an entrepreneur that is purposely giving yourself a lower salary, we can take a closer look at your situation and re-assess. We have dealt with this situation in the past.
You mentioned about credit report. It can be difficult to acquire it in my country, because organizations provide them directly to loan providers. Also since I never took a loan not even a credit I do not have a credit history. It adds to my difficulty to get a credit report. What can I do?
Prodigy_Zack: If you do not have credit or are having trouble getting a credit report, we can accept a "letter of good standing" from your bank. Overall, we use either document to determine if you have a solid financial history. Hard to give "pointers" but I would just recommend being as transparent as possible and fill every part of the application out fully. Tell us everywhere you've lived and worked, what your highest salary was, and all debts / liabilities the better we can get to know you as an individual, the better chances we can help you!
How many days would the entire procedure take roughly?
Prodigy_Zack: It takes about 15-20 minutes to complete the application. From then, you will hear within 2-3 business days if you are approved, and what the loan amount and interest rate is. From there, we will ask for supporting documentation (proof) -- as soon as you can upload those documents we will prepare your loan and send you a loan agreement to sign electronically.
Chat Transcript
Attachment:
10 Sep 2016, 20:47
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Hi,
I applied for the loan in Prodigy Finance. I got the conditional loan of 70,000 $. But due to some misunderstanding , the liabilities in CIBIL report did not match the debt i have declared in loan application. Because of that my loan is reduced to 40,000$. My Question is if i clear all my liabilities from CIBIL and re apply for the loan , will i get the 70,000 loan again ?
Thanks
I applied for the loan in Prodigy Finance. I got the conditional loan of 70,000 $. But due to some misunderstanding , the liabilities in CIBIL report did not match the debt i have declared in loan application. Because of that my loan is reduced to 40,000$. My Question is if i clear all my liabilities from CIBIL and re apply for the loan , will i get the 70,000 loan again ?
Thanks
