International Financial Aid Blog

The Credit Crunch and International Student Loans

noreply@blogger.com (Keith Clausen) — Mon, 21 Apr 2008 15:31:00 +0000

"College students in need of private loans to pay for the coming academic year will have to grapple with higher interest rates and tougher credit checks. Even then, some who have qualified for such loans in the past probably won't this year."
Wall Street Journal, 4/9/08

There has been a lot of media attention on the turmoil in the US student loan market over the past few months. In case you haven't been paying attention, the Wall Street Journal quote referenced above should get your attention.

Student loans will be harder to get, and for those that get them, they will be more expensive. The harsh reality is that there will be less students who can afford to go to school this coming year. Of course the majority of those impacted will be US students, but international students will face the same hurdles.

The problem stems from the fact that student lenders typically sell their student loans, to raise more capital to make more loans as well as for overhead and profit. Right now, no one wants to buy those loans. So lenders have had to take a number of actions -- here's a few of the responses we've seen:

Tightening Credit. Many student lenders have had to increase their credit requirements, meaning that you or your co-signer will need to have better credit to get a loan this year than you did last year. Although specific FICO score requirements are not made public by most lenders, we know that FICO score requirements are going up.
Less Schools. Many lenders are trimming schools from their list of "approved schools," both for federal and private loans.
More Expensive Loans. Lenders have increased the pricing on loans to make sure they are profitable enough to be able to sell.
Out of Business/Eliminating Programs. Over 60 lenders have decided to eliminate a private, consolidation or federal loan program or simply exit the market since they cannot make a profit on loans. Just last week, Bank of America decided that it will no longer make any private student loans, concentrating only on federal loans. Editor Mark Kantrowitz keeps a detailed chronology of the bad news on his site FinAid.com.

There is some good news. International student loans and study abroad loans are still available through InternationalStudentLoan.com and StudyAbroadLoans.com. We are committed to helping students fund an international education -- we do not participate in the much bigger domestic student loan market, so international loans are all we do. We will continue to source and make available the best international loan products available. Also, interest rates are based on LIBOR, and that index has been going down,helping to offset the higher margin that lenders are requiring.

What can you do to ensure that you will have enough money to pay for your education, if you rely on loans? First, as always, borrow as little as you can. Use your own funds or family funds, apply for scholarships, cut as much as possible out of your budget. That advice never changes. But here is some guidance specific to the educational funding mess, bordering on crisis, that we are now in:

1. Apply Early. InternationalStudentLoan.com and StudyAbroadLoans.com both process and fund loans quickly, so students typically can apply at a very late stage and still have their funds in time. However, with the current uncertainty, it is best to apply, get approved, and get your funds for this coming academic year as soon as possible.

2. Good Co-Signers. Get the best co-signer you can. Since credit criteria and pricing have gone up, a good US co-signer is critical to getting your loan approved and priced reasonably.

3. Check Your School. Don't assume that because you got a loan last year, you can automatically get another loan through the same program again. Many lenders have reduced their school lists. Also, InternationalStudentLoan.com now operates multiple programs -- if your school is not on the list, contact us, as there may be another alternative for you.

No one knows for sure how long this credit crunch will continue, or what the student loan marketplace will look like when it is over. One thing is for sure -- the earlier you start preparing for the coming school year, the less likely that you will be personally impacted by the turmoil.

We will continue to update any significant impact from the credit crunch on international student loans in this blog. Click here to subscribe to our blog and get an update when the next post comes out.

Canada Funds 500 New PhD Scholarships

noreply@blogger.com (Keith Clausen) — Fri, 29 Feb 2008 16:23:00 +0000

The new Canadian federal budget announced this week includes ambitious new funding for international education to help Canadian universities compete for top talent from Canada and around the world. From Macleans.Ca online:

"The program will award 500 PhD students with $50,000 each year for up to three years of study. The program will cost the government $25-million over two years. It will be open to both Canadian and international students.

The new initiative is a response to universities’ complaints that they are unable to attract the world’s brightest students to Canada. The program, named after Governor General George Vanier, aims to compete with high profile scholarship programs like the Rhodes program."

Click here to read the rest of the story on Macleans.ca Online.

The Canadian Federation of Biological Societies also reported on a new study abroad program for Canadian students:

"The Government will also provide $3 million over two years for Canada Graduate Scholarship recipients ($6,000/year to 250 students) to help Canadian students study abroad for one semester." For more information, visit the CFBS story.

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Dartmouth Goes Need-Blind for International Students!

noreply@blogger.com (Keith Clausen) — Thu, 14 Feb 2008 16:35:00 +0000

Dartmouth College, a member of the Ivy League and at the "forefront of US higher education since 1769," has joined the elite group of US universities and colleges that offer need-blind admissions to international students.

From Dartmouth's news release:

"Need-blind admissions for International Students

Starting immediately with the Class of 2012, the College will extend its need-blind admissions policy to all international students. Previously the College was need-blind for students from the U.S. as well as those from Canada and Mexico and provided financial aid to other international students up to a preset budget maximum. This cap will now be lifted and Dartmouth will join a very small group of schools that have a fully need-blind admissions process for international students."

Under a need-blind admissions policy, a school reviews a students application for admission without considering the student's ability to pay. Then if the student is admitted, the school must make the tuition affordable by meeting the student's demonstrated financial need for all four years of their undergraduate study, through a combination of grants and loans. Dartmouth will become the 7th US school offering need-blind admission, joining MIT, Harvard, Princeton, Yale, Williams College and Middlebury College.

Visit InternationalStudent.com's Schools Awarding Aid page to see more on the US colleges and universities that offer aid to international students.

Read the entire press release on Dartmouth's website.

$5.75 Million for African Scholarships at Brown

noreply@blogger.com (Keith Clausen) — Mon, 28 Jan 2008 16:35:00 +0000

From the Brown Daily Herald

A new endowment will increase financial aid for students from sub-Saharan Africa and will help them financially for two years after graduation if they pledge to return to work in Africa, President Ruth Simmons and Israeli businessman Idan Ofer P'12 announced Thursday.

The "Advancing Africa Scholarship Fund" was announced in Davos, Switzerland, where both Simmons and Ofer are currently attending the World Economic Forum. The scholarship requires students to sign a pledge to return home for at least two years after receiving their degrees - an effort to "build capacity" in the continent, Simmons told The Herald.

Ofer's gift of $5.75 million will fund $250,000 a year in scholarships for undergraduate students starting with the 2008-2009 academic year. The endowment will grow over time due to returns on investment, Simmons said, allowing the University to fund more students in the future.

The establishment of the fund marks an important milestone in Brown's efforts to attract international students. Until recently, Simmons said, it was hard to attract students from Africa. Even with financial aid, those students would have difficulty paying off loans or fulfilling the parent contribution. International students have long complained about a lack of economic diversity among their peers at Brown, something Simmons called "a valid concern." The endowment came as good news after years of "agonizing" over financial aid for international students, Simmons said.

Click here to read the rest of the story from the Brown Daily Herald.

Here's a list of US schools that offer aid to international students.

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International Student Loans for Study in the US and Canada

noreply@blogger.com (Keith Clausen) — Wed, 16 Jan 2008 13:26:00 +0000

Its that time of year again when international students are frantically trying to put together their funding for the year, and evaluating how much of a loan to apply for. To help, we are re-posting this article that originally ran last year.

Financing an education in the United States is difficult, even for a US student. For international students, paying for college in the US is even harder. Almost two-thirds of all students enrolled at private four-year US schools receive loans of some type. US students can receive loans guaranteed by the government (Stafford loans, among others), but these valuable loans are not available to international students. Luckily, private student loans are available to international students on the same terms received by US students.

Before applying for a loan, you should exhaust the following potential funding sources:

1. Apply for international student financial aid from your school. Here’s a searchable list of schools awarding financial aid to international students: http://www.internationalstudent.com/schools_awarding_aid/

2. Research and apply for international student scholarships on your own: http://www.InternationalScholarships.com

3. Carefully evaluate how much money you or your family can provide towards your education. Every dollar you can pay directly is one less dollar you have to borrow.

Some international students can fund their US education simply using the sources above. However, like US students, most international students will need to fund at least a portion of their US education, if not the entire amount, with loans.

· US Co-Signer Required. International student loans require a US citizen or permanent resident (Green card holder) as a co-signer. The loans are credit-based, meaning the co-signer must have good credit history, good employment history (or other income history if the co-signer does not work), and must have lived in the US for the past two years. Although not everyone can find a family member, friend or other US citizen or permanent resident to co-sign for them, for those that do, they can access private student loans on the same basis as US students.

· Funds Paid Directly to You. Loan funds are paid to you, not to the school. This is a great feature in that you can use the funds for living expenses – but it also means that it is up to you to use the funds responsibly. Pay your tuition, room and board, health insurance and books first – anything extra is a luxury!

· Repayment. Repayment of an international student loan can be deferred while you are in school, and for six months after you finish school. After that, you will have up to 20 years to repay the loan, with a payment due every month. You are also eligible for hardship extensions if you run into unexpected circumstances that prevent you from being able to repay the loan for a short period of time.

· Interest Rates. Interest rates are variable, based on the LIBOR plus a margin. LIBOR is always several points below prime, so the margin is from 3.5% to 7.75%, and will be set by the lender based on the credit history of your co-signer and the repayment plan you select. The better your co-signer, the better your rate! LIBOR changes monthly, up or down, so the rate will be reset monthly. Click here for repayment examples for a $10,000 undergraduate international student loan.

· Online Application. You can apply online or by phone, and receive an almost immediate response as to whether you are conditionally approved for the loan. Then, you will need to sign the promissory note, and provide proof of enrollment and immigration status to receive your funds.

· No Application Fees. There are no application fees to apply for an international student loan. There is an origination fee if you actually receive the loan, but that amount is rolled into the loan amount and does not have to be paid out of pocket.

For more information on international student loans, visit InternationalStudentLoan.com

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Rethinking College Rankings

noreply@blogger.com (Keith Clausen) — Mon, 19 Nov 2007 21:13:00 +0000

As we discussed in the last post, US News and World Report dominates rankings of colleges and universities in the US. The US News rankings are comprehensive and helpful in many ways, but there are critics of the rankings system. One small newspaper has proposed its own rankings system for the past three years.

When the Washington Monthly published its 2007 College Rankings, which can be viewed online here, it didn't look at average SAT score, average starting salary or average alumni giving, all standard fare in the US News and most other rankings. Instead, it graded schools based on three general categories -- Social Mobility, Research and Service. Why? In the words of Editor Paul Glastris, from his stint on the Colbert Report, colleges should be ranked on their contribution to the public interest, not on whether they have great rock-climbing walls.

Here's the three things Washington Monthly uses to rank a college's contribution to the public interest:

1. Social Mobility: "We want our colleges to be engines of social mobility so that the poor can get a better life." Under this criteria, the magazine looks at the percentage of students receiving Pell Grants, which it considers a good indicator of the school's commitment to poorer students, as well as the percentage of those students that graduate.

2. Research: "We want colleges to create the research and PhDs that can power the economy." Because Washington Monthly believes that research and PhDs are the key to growing the economy in a global market, they measure numbers of PhDs and amount of research spending by the university.

3. Service: "And we want colleges to inculcate an ethic of service for young people." For this, Washington Monthly looks at the number of students entering the Peace Corps, the size of the school's ROTC program, and the percent of work-study funds spent on community service projects.

Click here to see the whole college rankings report.

As an international student, did you use the US News and World Report rankings to help you select a US school? Would this alternative rankings system play into your decision-making process at all? We would love to hear your input.

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The Problem With College Rankings

noreply@blogger.com (Keith Clausen) — Mon, 29 Oct 2007 13:54:00 +0000

US News and World Report has dominated the college and university rankings in the US for years. Eagerly awaited each year, school administrators with improving US News rankings earn bragging rights while those schools on a downward trend must react vigorously to determine what has gone wrong. Parents and students use the rankings to determine to which schools to apply. By all measures, rankings have become critically important to how a college or university is perceived, particularly the US News rankings.

Critics of the US News ranking system are widespread and nothing new. For a summary of common critiques, read this excerpt from The Presidents Letter (dated May 10, 2007), developed by Lloyd Thacker of the Education Conservancy, and sent to college and university presidents in the United States in May 2007, concerning the U.S. News rankings:

"Among other reasons, we believe [...] rankings: imply a false precision and authority that is not warranted by the data they use; obscure important differences in educational mission in aligning institutions on a single scale; say nothing or very little about whether students are actually learning at particular colleges or universities; encourage wasteful spending and gamesmanship in institutions' pursuing improved rankings; overlook the importance of a student in making education happen and overweight the importance of a university's prestige in that process; and degrade for students the educational value of the college search process."

Perhaps the simplest critique is that parents and students get overly focused on rankings during their college search, and ignore the most important thing: what college or university is the best "fit" for the student? With thousands of excellent colleges and universities in the United States, offering all kinds of programs and experiences, there are so many better ways to choose a school than whether it is in the top 20 in the latest US News rankings.

For international students in the US, finding the right fit in a US school is even more important. Since you will be far from home, largely on your own, and probably on a limited budget, setting up a life you will enjoy in a comfortable environment is critical. The key is to start your research early, and be clear and realistic about your educational goals and budget. To get you started in choosing a school in the US, visit the Study USA section of InternationalStudent.com. This will help you think through questions like, city vs. country, large public university vs. small private college, community college or four-year college, specialized school vs. liberal arts college, etc., and will put you on the track to finding the school that is the right fit for you.

In the next post, we'll discuss an alternative rankings system proposed by Washington Monthly, a small, progressive DC-based magazine. Maybe you caught the editor on the Colbert Report last week? Check it out here.

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2nd Annual InternationalStudent.com $2500 Travel Video Contest

noreply@blogger.com (Keith Clausen) — Fri, 28 Sep 2007 20:38:00 +0000

InternationalStudent.com is running its travel video contest again this year, with an entry deadline of November 1 and an increased first prize of $2500. The winner will be announced in early November,and the finalists will be available for all to see on InternationalStudent.com. You can win $2,500 to travel anywhere in the world -- not to mention worldwide fame if your video is posted on the site! Any trip you want to take, and InternationalStudent.com will pay for it. There will also be runner-up prizes.

To enter, you must submit a 4-8 minute video that describes the trip you would take if you win, and why you should win. The best entry will win the $2,500 grand prize -- so be funny, or include some great footage and music, or tell a great story -- something to get your
entry noticed and stand out from the crowd. Check out last year's winning video and some other great entries.

The contest is open to anyone 18 or older and studying outside their home country, or planning a trip to study abroad.

For more information and to get an entry form, go to:
http://www.InternationalStudent.com/contest/

UAS7 Announces 45 Scholarships for Study in Germany

noreply@blogger.com (Keith Clausen) — Fri, 21 Sep 2007 14:17:00 +0000

If you are interested in studying and interning in Germany, you need to look at this program. UAS7, a consortium of 7 leading German Universities of Applied Sciences, announced this week that their Study & Internship in German program (SIP), launched last year, will continue and expand this year. UAS7 is cooperating with the German Academic Exchange Service (DAAD) and is granting 45 scholarships for the academic year 2008/09.

The program includes one semester of study at one of the 7 participating German universities, followed by a one semester internship in a company or research institute in Germany. Winners will receive a scholarship for the academic semester, a monthly stipend for the duration of the internship, and travel assistance, making it a very generous overall award.

To be considered for the program, students have to be currently enrolled in an undergraduate program at an accredited US or Canadian college or university (although US or Canadian citizenship is not required). Sophomores and Juniors in the fields of engineering, science, life sciences, business,management, economics, architecture, art, design, journalism, or social work are invited to apply. German language proficiency is an asset, but not mandatory.

All applications for the academic year 2008/09 must be postmarked no later than February 15, 2008. The application requirements are quite thorough and explicit, so make sure you start early and do the best job you can.

For complete details about the program, please visit the SIP website.

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Australian Technical Colleges Attract International

noreply@blogger.com (Keith Clausen) — Fri, 07 Sep 2007 19:17:00 +0000

For some international students, the ultimate goal of an overseas education is to obtain residency and the right to work in their adopted country. An article in today's Sydney Morning Herald, excerpted with explanation below, shows how international students have flocked to vocational training programs in Australia as an easier way to permanent residency.

In Australia, vocational training colleges are increasing their share of international students at a rate eight times faster than that of universities, after changes to the Australian Government's skilled migration system made vocational courses a more affordable way to gain residency.

Australian TAFE (Technical and Further Education) institutes provide mainly vocational and technical courses. Hospitality, secretarial skills, visual arts, computer programming, hairdressing and cooking are some of the courses and training typically offered through TAFE institutes. By contrast, higher education in Australia is dominated by universities offering degree courses in more typically academic subjects.

Universities remain the biggest educator of international students, with just under half the market share, but enrolments grew by just over 5 per cent in the year to July, compared with growth of more than 43 per cent in the vocational sector, government figures show. "It's clear that the main reason for that expansion is that it's seen as a relatively cheap and accessible route to migration," says Bob Birrell, a Monash University demographer who has mapped international students' paths to residency.

In 2005 the Australian Federal Government made it more difficult to migrate without expertise in an area of skills shortage, leading to a flood of international students taking cooking and hairdressing courses. Both courses give students extra points towards permanent residency. Unpublished government figures show that in 2005 just 3560 international students took vocational courses in services, hospitality and transport, which includes cooking and hairdressing courses. By last year, the number had swollen to 6339. And by this year it was 9454.

Read the whole story in the Sydney Morning Herald online.

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International Student Loans for Study in the US and Canada

noreply@blogger.com (Keith Clausen) — Mon, 23 Jul 2007 13:52:00 +0000

Its that time of year again when international students are frantically trying to put together their funding for the year, and evaluating how much of a loan to apply for. To help, we are re-posting this article that originally ran last august.

Financing an education in the United States is difficult, even for a US student. For international students, paying for college in the US is even harder. Almost two-thirds of all students enrolled at private four-year US schools receive loans of some type. US students can receive loans guaranteed by the government (Stafford loans, among others), but these valuable loans are not available to international students. Luckily, private student loans are available to international students on the same terms received by US students.

Before applying for a loan, you should exhaust the following potential funding sources:

1. Apply for international student financial aid from your school. Here’s a searchable list of schools awarding financial aid to international students: http://www.internationalstudent.com/schools_awarding_aid/

2. Research and apply for international student scholarships on your own: http://www.InternationalScholarships.com

3. Carefully evaluate how much money you or your family can provide towards your education. Every dollar you can pay directly is one less dollar you have to borrow.

Some international students can fund their US education simply using the sources above. However, like US students, most international students will need to fund at least a portion of their US education, if not the entire amount, with loans.

· US Co-Signer Required. International student loans require a US citizen or permanent resident (Green card holder) as a co-signer. The loans are credit-based, meaning the co-signer must have good credit history, good employment history (or other income history if the co-signer does not work), and must have lived in the US for the past two years. Although not everyone can find a family member, friend or other US citizen or permanent resident to co-sign for them, for those that do, they can access private student loans on the same basis as US students.

· Funds Paid Directly to You. Loan funds are paid to you, not to the school. This is a great feature in that you can use the funds for living expenses – but it also means that it is up to you to use the funds responsibly. Pay your tuition, room and board, health insurance and books first – anything extra is a luxury!

· Repayment. Repayment of an international student loan can be deferred while you are in school, and for six months after you finish school. After that, you will have up to 20 years to repay the loan, with a payment due every month. You are also eligible for hardship extensions if you run into unexpected circumstances that prevent you from being able to repay the loan for a short period of time.

· Interest Rates. Interest rates are variable, based on the LIBOR plus a margin. LIBOR is always several points below prime, so the margin is from 3.5% to 7.75%, and will be set by the lender based on the credit history of your co-signer and the repayment plan you select. The better your co-signer, the better your rate! LIBOR changes monthly, up or down, so the rate will be reset monthly. Click here for repayment examples for a $10,000 undergraduate international student loan.

· Online Application. You can apply online or by phone, and receive an almost immediate response as to whether you are conditionally approved for the loan. Then, you will need to sign the promissory note, and provide proof of enrollment and immigration status to receive your funds.

· No Application Fees. There are no application fees to apply for an international student loan. There is an origination fee if you actually receive the loan, but that amount is rolled into the loan amount and does not have to be paid out of pocket.

For more information on international student loans, visit InternationalStudentLoan.com

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US Students Can Save Money With a Foreign Degree

noreply@blogger.com (Keith Clausen) — Thu, 19 Jul 2007 18:53:00 +0000

A recent article in SmartMoney.com highlighted the potential time and money savings that US students, particularly future professionals, can realize by studying at a foreign university. Here's an excerpt from that article:

NEXT YEAR, CHRISTOPHER SCHULLER, a native of Nashville, Tenn., will complete his law degree at Oxford University, and he'll qualify to take the New York State Bar exam. Assuming he passes, he'll become a practicing attorney at age 22. Schuller didn't skip grades in high school or overload on his college coursework. Instead, he chose to attend college in England where most undergraduate programs — including law school — are three years long and where students begin their major on the very first day of classes.

"I knew since high school that I wanted to be a lawyer," says Schuller. "Once I realized that the Oxford law degree could get me straight to the Bar exam, going there seemed like the obvious choice."

In addition to skipping four years of traditional undergrad education, Schuller saved big bucks. Tuition for U.S. students at Oxford costs about $20,000 per year — or $60,000 to get a law degree. If Schuller had attended the University of Chicago, which was his first choice in the U.S., he'd pay more than $93,000 for an undergraduate degree, and then have to pay for a three-year J.D. to boot.

To read the rest of this story, click here.

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To read about Foreign Enrolled Loans, for US students like Christopher Schuller that want to study at foreign universities, click here.

Do International Students in the UK Pay Too Much?

noreply@blogger.com (Keith Clausen) — Fri, 13 Jul 2007 16:28:00 +0000

A new study from the Higher Education Policy Institute warned that the UK is in danger of losing international students if nothing is done to contain and reduce tuition and costs. The UK is the second most popular destination for international students, behind the US, but its share of all international students worldwide has dropped from 16% in 1998 to 11% in 2004.

Unlike in many other EU countries, non-EU students are charged higher rates in the UK than students from EU countries. The HEPI report warns that as global competition for international students heats up, the UK should address this inequity if it wants to maintain its status as the second most popular destination. The report argues that UK taxpayers should subsidize the education of international students, just as it does for UK and EU students. The report also reviews all of the economic and non-economic benefits that international students bring to the UK.

Read the article in the Chronicle of Higher Education or in the Guardian Unlimited.

Click here to see the full HEPI report.

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Funding Study Abroad

noreply@blogger.com (Keith Clausen) — Wed, 23 May 2007 14:47:00 +0000

Participation in study abroad programs by US students is exploding, as more and more students, schools and employers recognize the vital importance of a global education. Even Congress is getting in on the excitement, introducing the Paul Simon Study Abroad Foundation Act in March, which is designed to dramatically expand and democratize study abroad by funding thousands of study abroad scholarships. The goal of the Simon Act is to increase the number of US students abroad from the current 200,000 annually to 1 million within 10 years, focusing particularly on under-represented groups including lower-income students, and under-represented destinations like the Middle East and the developing world. Though aggressive, that goal is not unrealistic, as growth rates on US students going abroad are already quite healthy. Historic growth rates of 9.7% would get the number of US students abroad to about 640,000 by 2017; the Simon Act hopes to push that rate to 15% to achieve its goal.

The Simon Act recognizes what most students already know - the biggest hurdle to increasing study abroad participation is funding. Travel, exchange rates, international communication and simply living far from home all increase the normal burdens of tuition, fees and living expenses.

But there are strategies to help fund your study abroad – here’s the first few steps.

1. Visit your Study Abroad and Financial Aid offices. Your study abroad office or your program coordinator can provide guidance on a reasonable budget for your time abroad. Give your budget a careful reality check so that you can take advantage of travel and cultural opportunities. Choose a program carefully – London and Tokyo are much more expensive than the developing world. Then either your financial aid or study abroad office can help you sort out how much of your existing financial aid will transfer. Work study, institutional aid and some other types of financial aid often do not transfer fully to study abroad programs. Getting a handle on how much of your existing package will apply to your chosen program should be step one.

2. Research and apply for scholarships. There are many scholarships and funding opportunities available for study abroad. Fulbright scholarships are well-known, but there are a host of similar, lesser-known awards. Start with online resources. InternationalScholarships.com offers a large searchable database of scholarships for international study. Also, find out if your school offers any study abroad scholarships.

When it comes to researching and applying for scholarships, there is no substitute for hard work and preparation. Many are very competitive, so you’ve got to put your best effort into the application. Matt Brattin, winner of the 2006 InternationalStudent.com Travel Video Contest, chronicles the massive effort required to apply for the prestigious Jack Kent Cooke Foundation scholarship in his recent post on the InternationalStudent.com Study Abroad Blog.

3. Apply for loans. Prestigious awards are tough to get, and many awards don’t cover the full cost of studying abroad. After you’ve researched and applied for as many potential scholarships as you can, study abroad loans are available to cover any remaining amount of unmet financial need. At StudyAbroadLoans.com, students can apply for up to $50,000 per year, plenty of funding for just about any destination, and receive all the same terms as a standard student loan. Interest rates are competitive, repayment can be deferred until after graduation, you can apply online in minutes, and funding is fast and direct to the student. For more information or to apply online visit StudyAbroadLoans.com.

Study abroad is no longer just for well-to-do students at elite private schools. More and more, it is becoming the norm, an expected part of a complete education in an interconnected world. With effort and determination, almost any student can find a way to fund their study abroad.

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New Student Visa Rules for the UK

noreply@blogger.com (Keith Clausen) — Wed, 09 May 2007 20:53:00 +0000

Effective September 1, new student visa rules will be in effect in the UK. Under the old rules, most students did not need a visa and if you were studying for more than 6 months, you needed to get entry clearance. Under the new rules, there are two categories of student visa. Although students can enter the UK prior to September 1 under the old rules, if they leave and re-enter the UK after September 1, then the new rules will apply.

Here's a brief overview of the new rules for the Student Visitor Visa (less than 6 months) and the Student Visa/Prior Entry Clearance (greater than 6 months).

The Student Visitor Visa is for those that plan a stay of less than 6 months. Under the Student Visitor Visa, a student cannot have paid employment or an internship greater than 2 credit hours, and cannot extend their stay once they have arrived. For everyone else -- if you plan to stay more than 6 months, if you may extend beyond 6 months, or if you want to work or have an internship greater than 2 credit hours -- then you need to apply for a Student Visa/Prior Entry Clearance.

Although official UK sites have not been updated yet to reflect the new rules and processes, a summary of the new rules can be found on the NAFSA site. We will watch for further information and post an update when a good official resource on the new rules is posted.

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Brown University Increases Aid For International Students

noreply@blogger.com (Keith Clausen) — Fri, 09 Mar 2007 21:08:00 +0000

Although it hasn't yet joined the ranks of need-blind admissions for international students, officials at Brown University recently approved a dramatic increase in the amount of financial aid available to international students. The new budget approved last week will add $1.3 million to the existing $3.1 million in financial aid for international students, according to a report today in the Brown Daily Herald.

Very few schools (about 35, out of thousands) are able to offer need-blind admissions even to US students. Under a need-blind admissions policy, a college or university will admit students regardless of their ability to pay, and for any students that cannot afford the pricetag, the university awards scholarships and other institutional aid to make up the difference. Only a handful offer need-blind admissions to international students (MIT, Harvard University, Princeton University, Yale University, Williams College, Middlebury College, and Stanford University).

Obviously, any school with a need-blind admissions policy needs to have a very generous endowment (i.e. lots of money), as it costs the school dearly. Over the next few years, I expect more of the 35 schools that currently have need-blind admissions for US students to adopt need-blind admissions for international students as well. We'll keep you posted as the list grows . . .

Here's a list of US schools that offer aid to international students.

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You can read more about Brown's recent action in this story in the Brown Daily Herald online.

New Study Abroad Blog and Jack Kent Cooke Foundation Scholarships

noreply@blogger.com (Keith Clausen) — Fri, 02 Feb 2007 14:44:00 +0000

This week InternationalStudent.com launched a new Study Abroad Blog. For starters it will feature Matt Brattin, winner of the InternationalStudent.com travel contest, as he prepares to go to Spain this summer to begin his MBA at Esade. Matt has a unique tone and outlook and his writing promises to be funny and insightful -- check out his first post.

In his first post, Matt talks about the time he has spent preparing his application for a Jack Kent Cooke graduate scholarship. The application is a lot of work (eight essays!), and the process is very competitive -- but awards from the Jack Kent Cooke Foundation are very generous, and they come with an added dose of prestige. These scholarships are open to US students studying abroad, like Matt, but also to international students studying in the US.

Undergraduate Transfer Scholarship

The JKC Foundation Undergraduate Transfer Scholarship Program each year awards approximately 50 scholarships to students attending community colleges or two-year institutions in the US and planning to transfer to four-year institutions. These awards cover 2-3 years to finish the undergraduate degree, and cover tuition and living expenses up to $30,000.

The 2006 winners came from the US and eight other nations: Belarus, Vietnam, Ecuador, Jamaica, Palestine, Bhutan, Romania and China. To apply, you have to be nominated by your campus JKC Foundation representative. The 50 2006 winners were selected from 676 nominees from 438 community or two-year colleges throughout the US -- obviously a very competitive process.

Graduate Scholarship

The JKC Foundation awards 30 graduate scholarships per year, and each award can cover tuition and living expenses up to $50,000 per year for up to six years!

The 2006 award winners came from the US and nine other countries: Bosnia-Herzegovina, Germany, Mexico, New Zealand, Nigeria, Paraguay, Romania, Trinidad, and Togo.

Best of luck to Matt in his attempt to win one of these unbelievable awards. You can follow Matt through the process at the Study Abroad blog. And for more information on the awards themselves, visit the Jack Kent Cooke Foundation website.

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Internship programs in the US - earn while you learn!

noreply@blogger.com (Keith Clausen) — Thu, 11 Jan 2007 21:53:00 +0000

In the series of posts about international students working in the US, we explained generally how difficult it is to work while in the US. You can see those 5 posts here:

On-Campus, Severe Economic Hardship, OPT, CPT, International Institution

But there are exceptions to every rule, and this one is no different. There are a few well-structured internship programs in the US, that allow graduate international students to earn a significant amount of money while studying. Some students earn enough to pay their entire tuition plus living expenses!

Because the internship is integrated with the academic program, and a required part of the coursework, the internship qualifies as Curricular Practical Training (CPT), from the very beginning of the program, and the employment is permitted by USCIS. Two such internships programs, the HTIR program and Schiller International University's program, are highlighted below. With both of these programs, students can work full-time from their first day on campus!

HTIR is a private organization that refers international students to United States colleges and universities that offer paid internship employment to qualified Master degree students in Business (MBA), Management and Information Technology.

With the HTIR program, either part time or full time employment is allowed. All of the internship positions are with off-campus US-based companies in the vicinity of the university. Wages are paid at the same rate as for domestic workers in similar employment and vary from minimum wage for entry level CPT applicants and higher wages for those with more skills and work experience. Classes are offered during daytime, evening and week-ends to accommodate the students' employment schedules. All wages paid can be kept by the students and used for their tuition and fees, living and personal expenses.

Click here for more information or to pre-apply for the HTIR program.

Schiller International University, located in Largo, Florida offers a similar program for its international MBA candidates in one of the following concentrations: Hotel and Tourism Management, International Business or Information Technology.

All co-op applicants will be required to be employed in CPT working with an American company in the Clearwater-Tampa-St.Petersburg metropolitan area. Under the Schiller program, Internship jobs can be part-time (about 20 hours per week)or full-time (40 hours per week), as the student may choose. Classes are offered on week days, evenings and week-ends to accommodate the various work schedules of the students.

Both of these programs offer the international graduate student the unique ability to begin working and paying for their education immediately -- flexibility and earning ability that is not easy to find for an international student in the US.

Click here for more information or to pre-apply for the Schiller program.

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Student Loans for International Students

noreply@blogger.com (Keith Clausen) — Tue, 02 Jan 2007 02:21:00 +0000

Financing an education in the United States is difficult, even for a US student. For international students, paying for college in the US is even harder. Almost two-thirds of all students enrolled at private four-year US schools receive loans of some type. US students can receive loans guaranteed by the government (Stafford loans, among others), but these valuable loans are not available to international students. Luckily, private student loans are available to international students on the same terms received by US students.

Before applying for a loan, you should exhaust the following potential funding sources:

1. Apply for international student financial aid from your school. Here’s a searchable list of schools awarding financial aid to international students: http://www.internationalstudent.com/schools_awarding_aid/

2. Research and apply for international student scholarships on your own: http://www.InternationalScholarships.com

3. Carefully evaluate how much money you or your family can provide towards your education. Every dollar you can pay directly is one less dollar you have to borrow.

Some international students can fund their US education simply using the sources above. However, like US students, most international students will need to fund at least a portion of their US education, if not the entire amount, with loans.

· US Co-Signer Required. International student loans require a US citizen or permanent resident (Green card holder) as a co-signer. The loans are credit-based, meaning the co-signer must have good credit history, good employment history (or other income history if the co-signer does not work), and must have lived in the US for the past two years. Although not everyone can find a family member, friend or other US citizen or permanent resident to co-sign for them, for those that do, they can access private student loans on the same basis as US students.

· Funds Paid Directly to You. Loan funds are paid to you, not to the school. This is a great feature in that you can use the funds for living expenses – but it also means that it is up to you to use the funds responsibly. Pay your tuition, room and board, health insurance and books first – anything extra is a luxury!

· Repayment. Repayment of an international student loan can be deferred while you are in school, and for six months after you finish school. After that, you will have up to 20 years to repay the loan, with a payment due every month. You are also eligible for hardship extensions if you run into unexpected circumstances that prevent you from being able to repay the loan for a short period of time.

· Proof of Finances. One nice feature of international student loans is that you can use the initial loan approval to satisfy the school and visa requirement of showing one year's financial resources. You can apply for the loan without the proof of enrollment from your school, and receive conditional approval. Then you can provide your school with the conditional approval from the lender, and the school will see you have the necessary funds. Typically, a financial aid officer or international student advisor at a US school is quite familiar with this process and will help you. After admission and enrollment, you can complete the loan process and receive your funds.

· Interest Rates. Interest rates are variable, based on the LIBOR plus a margin. LIBOR is always several points below prime, so the margin is from 3.5% to 7.75%, and will be set by the lender based on the credit history of your co-signer and the repayment plan you select. The better your co-signer, the better your rate! LIBOR changes monthly, up or down, so the rate will be reset monthly. Click here for repayment examples for a $10,000 undergraduate international student loan.

· Online Application. You can apply online or by phone, and receive an almost immediate response as to whether you are conditionally approved for the loan. Then, you will need to sign the promissory note, and provide proof of enrollment and immigration status to receive your funds.

· No Application Fees. There are no application fees to apply for an international student loan. There is an origination fee if you actually receive the loan, but that amount is rolled into the loan amount and does not have to be paid out of pocket.

For more information on international student loans, visit InternationalStudentLoan.com.

International Students Save Money at Community Colleges

noreply@blogger.com (Keith Clausen) — Mon, 11 Dec 2006 14:29:00 +0000

Even though more US colleges and universities are making financial aid and scholarships available to international students, most international students at US colleges and universities still must rely on their own sources of funds to pay for their education -- like family funds, loans and savings. And the cost of education in the US continues to rise, both in tuition and other costs.

One solution that more and more students have found to make a US higher education more affordable is to attend a community college for two years. Community colleges usually offer 2-year programs that provide an "associates" degree, at much lower tuition than a traditional four-year school. Armed with an associates degree from a community college, students can move on to a full college or university and complete their undergraduate degree in only 2 years. Instead of paying four years of tuition at the higher rate for colleges and universities, students pay 2 years of community college tuition and 2 years of university or college tuition.

For example, the University of Florida estimates annual tuition and living expenses for an international undergraduate student at $30,205 for the 2006/2007 school year. Assuming that you could live on the estimated amount, and assuming no increase in costs over the four years (both questionable assumptions!), it would cost an international student $120,820 for a four-year undergraduate degree at the University of Florida.

If that student spent the first two years at Manatee Community College in Bradenton Florida (at $20,100 tuition and living expenses per year), and then 2 years at the University of Florida, the student still graduates with a University of Florida degree, but only spends a total of $100,610, saving over $20,000. There are many examples where the savings are even greater, but you get the idea.

US students have known this for years, and have been taking advantage of this system of community colleges. For US students, community colleges often also have the advantage of being close to home, so students can live at home and even continue to work, while paying the reduced tuition, making education even more affordable.

If there is a downside, its probably that completing your degree may be a little harder. I've never seen any statistics on it, but you must study hard, do well at community college, apply and be accepted to a new school after 2 years, then re-adjust and study hard to complete your degree there. This adds additional re-adjustment periods and transitions that the student who stays at one school for four years does not have to face. However, for highly directed and motivated students who will apply themselves and study hard wherever they are, it does offer a way to save a lot of money on your US higher education.

International students have started to figure the community college system out -- community colleges are bursting with international students. For instance, Houston Community College has 3,227 international students, Santa Monica College has 2,658 international students, and there are over 40 2-year colleges in the US with 500 or more international students.

As enrollment of international students increase, these schools are also becoming increasingly adapt at and in tune to the needs of international students, making community colleges a realistic and much more affordable way to begin your international education.

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Sources of Funds for International Students in the US

noreply@blogger.com (Keith Clausen) — Fri, 01 Dec 2006 16:11:00 +0000

Most international students at US colleges and universities still must rely on their own sources of funds to pay for their education -- like family funds, loans and savings. Although many US schools continue to increase the number of scholarships and the amount of financial aid available to international students (for instance, see InternationalStudent.com's November newsletter article #7 about Stanford's new policy), the responsibility for paying for college in the US still largely falls on the student and his or her family. This is particularly true for undergraduates.

Data from Open Doors 2006, an annual report published by the International Institute for Education, shows the sources of funds for international students in the US. Here's an excerpt showing the primary source of funds for international undergraduate and graduate students in the US:

Primary Source of Funds	% Under- graduate	% Graduate
Personal & Family	81.5	46.1
U.S. College or University	11.4	46.5
Home Government/University	2.2	2.7
U.S. Government	0.3	0.6
U.S. Private Sponsor	2.1	1.0
Foreign Private Sponsor	1.7	1.5
International Organization	0.2	0.3
Current Employment	0.1	0.9
Other Sources	0.6	0.5

Graduate students are much more likely to receive financial assistance from their school, often in the form of assistantships, research grants, etc., whereas very few undergraduates receive any form of aid from their school. There are undergraduate scholarships available at many schools -- search InternationalScholarships to see just how many are available -- but the lesson from these numbers is, be prepared to pay your own way.

In addition to scholarships, International Student Loans are available to international students in the US or Canada, if you have or can find a US co-signer. These loans are just as good as domestic US students can get, and make study in the US possible for thousands of international students.

But even with loans available, no one wants to be hundreds of thousands of dollars in debt coming out of college, which is easy to rack up at expensive schools in expensive cities (see our post on evaluating school program costs). A solution that more and more international students are turning to is the system of community colleges in the US. Just like US students, international students have figured out that they can save tens of thousands of dollars by doing the first two years of an undergraduate degree at a community college, then transfering to a four-year school to complete your degree.

In the next post, we'll talk about international students accessing community colleges in the US.

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Number of International Students in the US Poised to Rebound

noreply@blogger.com (Keith Clausen) — Tue, 14 Nov 2006 23:32:00 +0000

Each year, the Institute of International Education (IIE) publishes the "Open Doors" report on the number of international students in the US, together with detailed demographic information on the international student population. The 2006 Open Doors report was released this week, showing that the overall number of international students in the US has held steady from last year, at about 565,000. However, the number of new enrollments grew by 8%, from about 132,000 to about 143,000, indicating that the number of international students in the US is poised to return to the historic norm of steady year over year growth.

Open Doors 2006 shows an increase in the number of international students that rely primarily on personal and family funds to pay for their US education, from 61.8% to 63.4% of international students. Although it is still difficult to pay for a US education, funds from international student loans are included in that category, making the number a little bit deceiving.

There are also a lot of scholarship recipients in the US international student population -- 25.9% of international students list their US college or university as their primary source of funds. You can find lots of these scholarships listed at InternationalScholarships.com.

A few snapshots from Open Doors 2006:

US Schools With the Most International Students

University of South California 6,881
Columbia University 5,575
Purdue University 5,540
New York University 5,502
University of Texas - Austin 5,395

Leading Countries of Origin

India 76,503
China 62,582
Korea 58,847
Japan 38,712
Canada 28,202

US States with the Most International Students

California 75,385
New York 64,283
Texas 46,869
Massachusetts 28,007
Florida 26,058

Most Popular Fields of Study For International Students

Business and Management 18%
Engineering 16%
Physical and Life Sciences 9%
Social Sciences 8%
Mathematics and Computer Sciences 8%

Click here to see more details on the Open Doors 2006 report.

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$2,000 Holiday Travel Contest - Only for International Students!

noreply@blogger.com (Keith Clausen) — Tue, 07 Nov 2006 09:50:00 +0000

InternationalStudent.com unveiled an exciting new video contest last week, with an entry deadline of December 1. The winner will be announced the week of December 4-8, and the finalists will be available for all to see on InternationalStudent.com. You can win $2,000 to travel anywhere in the world -- not to mention worldwide fame if your video is posted on the site! Any trip you want to take, and InternationalStudent.com will pay for it.

To enter, you must submit a 4-8 minute video that describes the trip you would take if you win, and why you should win. The best entry will win the $2,000 grand prize -- so be funny, or include some great footage and music, or tell a great story -- something to get your entry noticed and stand out from the crowd. Film students, technical and artistic types -- you have a leg up on the competition. But it is open to anyone 18 or older and studying outside their home country.

For more information and to get an entry form, go to: http://www.InternationalStudent.com/contest/

Employment with a Recognized International Institution

noreply@blogger.com (Keith Clausen) — Mon, 06 Nov 2006 09:02:00 +0000

Today’s is the final post in our series on employment rules for F1 students in the US, covering employment with approved international organizations. You can see the earlier posts here:

Off-Campus Employment Now Permitted in Canada
On-Campus Employment in the US
Off-Campus Employment in the US – Severe Economic Hardship
Off-Campus Employment in the US – Optional Practical Training
Off-Campus Employment in the US – Curriculur Practical Training

Employment with an International Organization

The final category of employment for international students in the US on F1 visas is employment with a “recognized international organization.” To qualify, an organization must be on the official State Department list, and listed organizations include the Red Cross, African and Asian Development Banks, the World Health Organization, the World Trade Organization, and many other similar but less well-known organizations. Because it does not have the universal application of OPT or CPT, this category of employment is often overlooked. Only students with a job offer and sponsorship from one of the listed organizations are eligible. However, for those lucky students that do have such sponsorship, there are clear benefits to this category of employment.

Requirements to work for an international organization:

* The student must have an internship/employment with a “recognized international organization.” To see a recent listing of all “recognized international organizations, click here
* The employment must be within the scope of the organization’s sponsorship, and within the student’s field of study.
* The student must have been in valid F-1 status for at least one full academic year
* The student must be in good academic standing

If you meet these requirements, you can apply for an Employment Authorization Document (EAD) from the United States Citizenship and Immigration Service (USCIS). Only after you receive your EAD, which can take up to 3 months, can you start to work.

There are certain advantages of this type of employment when compared to CPT or OPT.

* Employment does not have to be for-credit nor required for your degree program
* Regardless of how much or how long you work, this type of employment will not take away from your 12-month post-completion OPT

To see the text of the entire rule governing off-campus employment with recognized international organizations by F1 students, click here.

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Swedish Schools Still Free for International Students -- For Now

noreply@blogger.com (Keith Clausen) — Mon, 30 Oct 2006 23:06:00 +0000

The number of international students in Sweden has been growing rapidly, primarily due to two factors. First, because Sweden is so committed to universal English in its population, there are lots of academic offerings in English. International students can find English language programs in all of the most popular disciplines -- which include social sciences, business or law (34.8 % of international student in Sweden); engineering, manufacturing and construction (17.9%); humanities and arts (17.6%); sciences (12.4%); health and welfare (9.1%); and education (4.8%). The number of international students in Sweden has now surpassed 36,000.

Second, international students pay no tuition!! Just like Swedish students, international students admitted to Swedish undergraduate or masters programs can attend without paying any tuition. This is reflective of an overall commitment to higher education -- Sweden ranked third in spending worldwide on tertiary education at 2.2% of GDP, behind only Denmark and Norway.

For more information on the increasing number of international students in Sweden, read the whole article from StudyinSweden.se here.

However, this great deal is being threatened. Sweden has proposed charging tuition to all international students except those from EU countries. This week, Swedish universities and unions went on the record to object to the government proposal . Academics are concerned that proposals to introduce tuition fees for international students at Sweden’s universities could discourage gifted foreign students from coming to study in Sweden.

To find out more, you can read the entire article from The Local here. Lets hope that Sweden maintains its commitment to international education, as any affordable international education program, no matter how few spots are available, provides hope and opportunity to students that couldn't otherwise afford to go abroad.

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