Financing an MBA in the U.S.

International students coming to the U.S. have resources—online and off—to help them find financial aid for business school

by Erica Pelzek

Perhaps you attended university in Australia, New Zealand, or Britain and seek a different career and educational experience among Yanks? Or maybe your education in India or China piqued your interest in obtaining an MBA in the U.S.?

Regardless of your motives as a globe-trotting, full-time business student, you have to get here somehow, and that journey can be expensive—anywhere from $20,000 to $47,000 a year for tuition alone. But worry not, traveling student. A few key financial aid Web sites and resources are like markers on a treasure map for those who wish to head to the U.S. for B-school.

Financial aid is often complicated, and for international students in the U.S., it can be even more trying. Besides a lack of federally designated aid, many international loans for students studying in the U.S. require permanent resident or U.S. citizen co-signers. Adding yet another hurdle is the limited availability of scholarships specifically for international students studying in the U.S. Often, international students are added to the same pool as all other entering students, making scholarships incredibly competitive and difficult to obtain.

Online Resources

The No. 1 stop for international students for financial-aid resources is the Web, including the International Education Financial Aid's Web site, which provides grant listings and a database brimming with domestic and international scholarship opportunities.

More important, the Web site links to International Student Loan, a site devoted to giving students who wish to study internationally information on loan providers. These loan monies don't flow freely without a few obstacles, though. The international loan highlighted on the site requires a creditworthy co-signer who must be a U.S. citizen or permanent resident. Additionally, the student must attend a qualifying school from the Web site's list.

As of August, 2007, most of BusinessWeek's top-ranked full-time MBA programs for 2006 were qualifying schools for this loan. However, even if a school is not on the list, it may have its own loan program for international students. For instance, Diane Hunt, assistant director of financial aid for the University of Michigan's Ross School of Business, says the B-school has a loan arrangement for international students through Citibank (C). CitiAssist Loan recipients can borrow up to the full cost of attendance, regardless of their credit scores and less the amount of financial aid (scholarships, etc.) received.

Similar to the International Education Financial Aid site is the Institute of International Education's Funding for U.S. Study Online. The site provides a large, free, searchable database of grants, scholarships, and other awards for international students studying in the U.S.