Loans for internationals...terminated for 2009-2010

Question

Hi All,

I've heard that many loan programs will be terminated for the school year 2009-2010. This is especially a huge problem for international students without co-signers.

I know for sure Access Group will be terminating their international loans. Citibank i heard might be as well, or if they continue they will raise their rates by A LOT.

Anybody know what options internationals will have for next year?

Thanks.

trader1 · Answer

Actually, if you hadn't applied for and been approved about a month ago, then your options for school year 2008-2009 are also nil.

The main problem that started this was TERI filing for bankruptcy to protect their assets. They were the guarantor for IEFC and many other international loan programs. When TERI did this, the question of whether they could actually continue guaranteeing the loans came into doubt. Therefore, all of TERI's partners (the lenders) pulled out of this particular segment of the loan market.

aceman626 · Answer

I am already set for 2008-09, but do you guys know of any other options for next year?

I am talking internationals w/o co-signers of course.

kk.iyer · Answer

Where/how did you get to know of this?

I am in exactly the same scenario as you are but am contemplating on going 50-50...

Use personal funds to fund 50% of COA and the loan for the other 50%; this for each year.
With the way the things are shaping up, I have doubts on whether these no-cosigner loans will even be available next year.

I know I'd be taking a hit on the additional interest for the one year but doing this buys me time if these loans become unavailable next year and also reduces the amount that I would have to arrange for (by 50%). Throw in some money from the internship and some tax refunds..the amount becomes a lot more manageable.

What do you guys think?

nick_sun · Answer

We need some proof that it might happen. Has anybody got some newsletter or newspaper article?

trader1 · Answer

Expect the worst possible scenario.

If you prepare for the worst, then it can only improve from there.

sm332 · Answer

hmm ... the obstacles for Intls keep increasing in the USA. Makes me wonder whether it is even worth the hassle after having already been at the short end of the stick once post UG

trader1 · Answer

I am American.

But, the future lies in the East. And South.

sm332 · Answer

I never suggested that it doesnt, however that doesnt mean that getting an MBA in the US is a bad idea either.

trader1 · Answer

I agree with you. An MBA from a globally recognized program in the USA will take you many places. Plus, if you get a loan denominated in dollars, but work outside the USA and earn another currency, the chances increase that your loan actually "becomes cheaper" to pay off (since the value of the dollar most likely has further to fall).

sm332 · Answer

That is true ... the $ devaluation will probably assist in paying off loans. However, the sheer differential in salaries make working anywhere outside of USA and perhaps UK troublesome when it comes to paying off the loans in a reasonable amount of time.

In any case, hopefully I will be able to convince someone that I am a 'safe' loan and get a co-signer.

aceman626 · Answer

Since there are no more full loans that do not require co-signers, do you guys know if there are any organizations that help people co-sign loans? I don't have family in the states, don't really want to ask friends, not sure what my options are.

filmcity · Answer

You sure now every loan requires co-signor? In that case, I am gone. Off with my B-school dream!

Loans for internationals...terminated for 2009-2010

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