While 90 percent of MBA hopefuls report they would consider studying abroad, over 60 percent say they would be unable to do so without financial aid, according to data obtained by BusinessBecause.
With all the perks of studying abroad tend to come a fair share of problems too. And as more students realise the advantages to obtaining an MBA abroad, loan providers and banks have, on the whole, failed to respond to the demand.
Those who make it abroad for their MBA face international payment charges from banks, fluctuating exchange rates, an inability to work in some destinations, and a lack of credit history in their university’s country.
British multinational bank HSBC recently launched an ‘International Education Payment Service’ to eradicate the hassle which comes with paying tuition fees from abroad.
BusinessBecause data shows that 90% of #MBA applicants would consider studying abroad, but over 60% say an MBA would be impossible without financial aid. Enter @ProdigyFinance – they helped this MBA start a new career abroad. Read his story: https://t.co/TgNEsezLP0 pic.twitter.com/xsvENfrZsY
— BusinessBecause (@businessbecause) April 26, 2018
While an innovative move, it currently only caters for Chinese nationals, as the largest group of international students in the world, so all other nationalities are yet to benefit.
Fed up with the lack of funding available for MBA students, three graduates who struggled to finance their degrees abroad set up a service to give international students the access to funding they so desperately need.
The borderless service, Prodigy Finance, has to date loaned over US$505 million to more than 10,300 students all over the world.
“I was very much focused on venture capital and technology, so the US was the natural place to be,” Brazilian national Alex Brack, who used the service to fund his MBA, told BusinessBecause.
At the beginning of Brack’s second year on his MBA course, the co-signer of his student loan fell into financial difficulty, affecting Brack’s credit score.
If you're faced with two (or more) MBA offers, you've got a wonderful problem on your hands. Here is some advice from Fortuna, shared with @ProdigyFinance, on how to choose your path. https://t.co/IBvmpJVO3r pic.twitter.com/hgZIaNZvfx
— Fortuna Admissions (@FortunaAdmit) February 21, 2018
“After asking some other friends to be my co-signer – a very awkward ask to make – and seeing some resistance, the alternative I had was bringing money from my country and suffering a very strong exchange rate penalty due to a momentary economy crisis in Brazil,” Alex said.
And these situations are incredibly common, BusinessBecause reported.
With little option other than to risk landing himself in financial trouble, Alex felt he would have to leave his course, but finding services such as Prodigy Finance, which do not require a co-signer, meant he could continue his studies.
“Without [it], it would have been very difficult to conclude my course.”
The company asserts the idea that finance should never stop someone from pursuing higher education. As more MBA students recognise the benefits of studying overseas, loan providers and banks would be wise to keep up and adapt to the ever-changing global world.