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New Loan Program
Signals Breakthrough in HBS MBA Financial Aid for Non-US Citizens |
| Adapted from Harvard Business School Bulletin
Online |
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Imagine being accepted into the Harvard MBA Program
only to realize you can’t afford to enroll. This unfortunate scenario is
quickly becoming a thing of the past, thanks to an unprecedented new loan
program introduced last spring. HBS recently finalized an arrangement with
the Student Loan Corporation, a subsidiary of Citibank, that allows MBA
students to borrow funds through a customized version of Citibank’s private
CitiAssist program. |
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Citibank will be granted preferred lender status
with MBA students at HBS, although students can still borrow from any lender.
“This is a major strategic tool to attract exceptional young leaders, particularly
those from outside the United States,” says James T. Millar (MBA ‘92),
director of MBA Admissions and Financial Aid. “No other business school
offers anything like it.” The most compelling feature for Israeli applicants
of the new loan progam is its availability and guaranteed approval to any
HBS MBA student, without a cosigner, regardless of the student’s citizenship.
Other important features include low interest rates; no loan origination
or guarantee fees; nominimum loan; maximum loan equal to the student budget
less other financial aid; loan repayment over fifteen years; and prepayment
option without penalty. |
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Previously, access to private loan programs was
generally limited to U.S. citizens and permanent residents with a strong
credit history. These loan programs typically required either a significant
loan origination fee or a relatively high rate of interest. The new arrangement,
unique to HBS among business schools with similar cost and financing structures,
eliminates access limitations based on citizenship and creditworthiness
hurdles that have discouraged potential candidates from applying to the
MBA Program in the past. “The program gives all HBS MBA students access
to competitively priced loan financing, without fees,” says Millar. “As
a result, all students admitted to the MBA Program should be able to arrange
the necessary financing.” MBAs at Harvard have already benefited from the
new loan program. Of the Class of 2000, at least one-fourth of those using
the CitiAssist program would not have qualified for private loan funds
before this year. |
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Last modified: 08/01/06 |
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