Beginning of April ‘09 was quite a turbulent period for me. The joy of getting into Ross was marred by the realization that without a Student Loan/Scholarship, I will not be able to pursue my MBA. Things were looking bleak with all schools saying that they are working a way out of this mess caused by the financial meltdown.

But End of April Ross got back to me, announcing the RSB‐UMCU International Student Loan Program for incoming International Ross MBAs. It not only covered the whole cost of the program, but also gave a very healthy interest rate of [rate of prime + 1.75%] (with a floor of 4.5% and a ceil of 18%).Quoting an article “The variable-interest loans feature no origination fee, a rate of prime plus 1.75 percent, a floor of 4.5 percent and a rate cap of 18 percent adjusted quarterly. (Borrowers with a qualified U.S. cosigner can receive an additional 0.5 percent discount.) The loans feature a 20-year repayment period with a six-month post-graduation grace period.“

I was elated and applied for it and now am on the verge of getting my I-20. But I never realized how competitive these rates were, until I saw this post on ClearAdmit today. The article says that a lot of schools are not giving a loan for the whole amount. The other’s rate vary from a constant rate of 7-9% to variable rate of prime rate + approximately 3%.

I only wish there was a moratorium period on the loan during my two years at school. But, quoting the school’s PDF on the loan details:

No payments on principal or interest required while in school or during the six‐month grace period. Interest is deferred while in school. Unpaid interest will be capitalized to the principal once the borrower begins repayment. This means that deferred interest is added to the principal loan amount and payable once repayment begins.

But I guess you can’t have all :) So my steps are fast moving towards AA this fall. Go Blue!