Student Loan for Studies Abroad

[vinsku]

Hi,
I would like to get some information regarding student loan for studies abroad. Before I post the question, I will provide a background information of myself, which I believe is essential in this case, in order to get a somewhat accurate response.
I have a permanent resident permit and have been living and working in Finland for the last 5 years. I am married to a Finnish citizen, so my permit is based on family ties.
I am planning to do MBA, begining in the fall of this year. I have already taken my GMAT and was fortunate enough to score 700+, which has provided me an opportunity to get admitted into one of the top Business Schools. It is a well known fact that these Business Schools charge an astronomical tution fees, which is perhaps justified when you compare the opportunity cost and the investment on return.
However, the problem is that I cannot in any way finance my studies by myself. The average tution fee in any good European Business School is about 40,000€. The Helsinki School of Economics itself charges 33,000€ for the tution fee alone. Now the question is: Am I eligible for a bank loan to cover my tution fees for studies abroad? The Schools in which I am applying are consistently ranked among the top 30 globally and have an outstanding campus-placement record. Moreover, I have a clean credit history. Can the bank loan cover the entire tution fee, and if not, what percentage of the tution fee would any bank be willing to cover?
I have been to Kela and the lady there told me that I have a good chance for a favorable decision concerning government guarantee for student loan, but the amount of the loan itself will be decided by the bank. There is no point in going to the bank right now unless I have an admission letter, after which I may be granted a government guarantee on student loan, and eventually the bank loan.
I would just like to know if anyone has ever been granted such a high student loan for studies abroad, and is it possible for me to get a loan to cover the full tution fee of 40,000€?
Looking forward to your responses.

[rinso]

As you already know, the bank needs a security for the loan.
It depends on the security you can offer what the bank is willing to loan you.
You have to talk to the bank yourself, everybody situation is different.

[CH]

The bank decides how much they will lend to you, as for any loan, but the government only guarantees only up to 440e per month. Anything beyond that is for you to negotiate with the bank. http://www.kela.fi/in/internet/english. ... 01144101IL (a bit more detailed information in Finnish: http://www.kela.fi/in/internet/suomi.ns ... 02135541RS)

Do check from the Kela page above that you fulfill the requirements. And um... you want to go to a prestigious business school, but cannot find the information from the Kela-pages (took me about a minute)??? Use the Search Engine, Luke!

[Upphew]

And um... you want to go to a prestigious business school, but cannot find the information from the Kela-pages (took me about a minute)??? Use the Search Engine, Luke!

Ain't the MBAs for the management? Need I say more?

[vinsku]

The bank decides how much they will lend to you, as for any loan, but the government only guarantees only up to 440e per month. Anything beyond that is for you to negotiate with the bank. http://www.kela.fi/in/internet/english. ... 01144101IL (a bit more detailed information in Finnish: http://www.kela.fi/in/internet/suomi.ns ... 02135541RS)

Do check from the Kela page above that you fulfill the requirements. And um... you want to go to a prestigious business school, but cannot find the information from the Kela-pages (took me about a minute)??? Use the Search Engine, Luke!

Hi CH..Thanks for the info.However, I did mention in my post that I have already been to Kela and have sufficient information regarding government guarantee and the financial aid the government will provide me during my studies which will cover a part of my living expenses.
I think u misunderstood. I already know all information concerning Kela, government guarantee for student loan and financial aid provided by the government during my studies abroad. That is not my main concern here, as I already qualify for the government guarantee and aid. What does bother me at the moment is the TUTION FEE and how much loan would i be able to get once I do get a confirmation of acceptance.
All I want to know if there has been someone here, other than a citizen, who has successfully managed to get a student loan of atleast 40,000€ to cover the tution fee.
The thing is that in most other coutries, people negotiate with the bank beforehand and are able to get an idea about the amount of the loan that could be sanctioned to them. But in Finland its different. I cannot negotiate with the bank before I get a government guarantee. And I cannot get a government guarantee until I get a confirmation letter of acceptance from the School. The time period between receiving the acceptance letter and confirming my place is so slim that arranging a student loan during that time is leaving my faith to chance.

[vinsku]

As you already know, the bank needs a security for the loan.
It depends on the security you can offer what the bank is willing to loan you.
You have to talk to the bank yourself, everybody situation is different.

Hi riinso..Thanks for your response.
Do you mean security other than a government guarantee? Does the bank need some kind of collateral for a student loan, besides a government guarantee? I was under the impression that for a student loan, a government guarantee is sufficient. I believe I can't put my house as collateral as I already have a housing loan. But maybe, I can squeeze a little more out of it.

[Upphew]

As you already know, the bank needs a security for the loan.
It depends on the security you can offer what the bank is willing to loan you.
You have to talk to the bank yourself, everybody situation is different.

Hi riinso..Thanks for your response.
Do you mean security other than a government guarantee? Does the bank need some kind of collateral for a student loan, besides a government guarantee? I was under the impression that for a student loan, a government guarantee is sufficient. I believe I can't put my house as collateral as I already have a housing loan. But maybe, I can squeeze a little more out of it.

You can get government guarantee up to 440/month. No tuition in Finland = no government guarantee needed for that. Anything over that is just a regular loan which bank gives and thus demands warrantor or collateral, as it can't sell your degree if you don't pay.

[CH]

And um... you want to go to a prestigious business school, but cannot find the information from the Kela-pages (took me about a minute)??? Use the Search Engine, Luke!

Ain't the MBAs for the management? Need I say more?

Yeah, you're right... on both accounts.

[rinso]

Do you mean security other than a government guarantee?

It depends on how much that guarantee is. If you want to loan more than is guaranteed, you need to find additional collateral sources.

[CH]

I quite understood what you meant, how about going and reading that Kela page now?

The thing is that in most other coutries, people negotiate with the bank beforehand and are able to get an idea about the amount of the loan that could be sanctioned to them. But in Finland its different. I cannot negotiate with the bank before I get a government guarantee. And I cannot get a government guarantee until I get a confirmation letter of acceptance from the School. The time period between receiving the acceptance letter and confirming my place is so slim that arranging a student loan during that time is leaving my faith to chance.

There is absolutely no need to wait with the bank. You can negotiate the bank loan in advance, and for the 440e per month student loan you then sign the papers when you have the needed papers. The student loan is more or less a normal loan, but the government guarantees it so you don't have to find collateral or co-signers. The big difference between a student loan and a "normal" loan is that you don't have to start paying it back immediately. You can use the student loan for anything... living expenses, tuition, whatever... nobody is going to check what the heck you did with it. If you need a loan in addition to the 440e per month then it's a normal loan. So, go to at least a couple of different banks to ask about their student loans and how much they would be willing to lend you in additon.
Here for instance is Nordea's page for student loans: https://www.nordea.fi/Personal+customer ... n&link=1_1

Have you checked what loans, grants, fee wavers, whatever is available in the country you would be studying in? I found for instance this for England, Northern Ireland and Wales: http://webarchive.nationalarchives.gov. ... /DG_067556
and according to this forum fees in Scotland are waved for EU citizens: http://forum.isory.org/viewforum.php?f=10

[vinsku]

I quite understood what you meant, how about going and reading that Kela page now?

The thing is that in most other coutries, people negotiate with the bank beforehand and are able to get an idea about the amount of the loan that could be sanctioned to them. But in Finland its different. I cannot negotiate with the bank before I get a government guarantee. And I cannot get a government guarantee until I get a confirmation letter of acceptance from the School. The time period between receiving the acceptance letter and confirming my place is so slim that arranging a student loan during that time is leaving my faith to chance.

There is absolutely no need to wait with the bank. You can negotiate the bank loan in advance, and for the 440e per month student loan you then sign the papers when you have the needed papers. The student loan is more or less a normal loan, but the government guarantees it so you don't have to find collateral or co-signers. The big difference between a student loan and a "normal" loan is that you don't have to start paying it back immediately. You can use the student loan for anything... living expenses, tuition, whatever... nobody is going to check what the heck you did with it. If you need a loan in addition to the 440e per month then it's a normal loan. So, go to at least a couple of different banks to ask about their student loans and how much they would be willing to lend you in additon.
Here for instance is Nordea's page for student loans: https://www.nordea.fi/Personal+customer ... n&link=1_1

Have you checked what loans, grants, fee wavers, whatever is available in the country you would be studying in? I found for instance this for England, Northern Ireland and Wales: http://webarchive.nationalarchives.gov. ... /DG_067556
and according to this forum fees in Scotland are waved for EU citizens: http://forum.isory.org/viewforum.php?f=10

Finally you understood the point of the question.
Forget Kela and government guarantee. I know everything about it and and have no intention on dwelling on it over hundred time in different terms to get the point across. All I am concerned about is student loan to pay for my tution which ofcorse wont be covered by the paltry 440€/month granted by Kela.
kela is important only for getting a government guarantee and aid. Other than that, I dont see any other role of Kela in this regard. And for your convenience, I will repeat it once more that I have already been to Kela and have been assured of a favorable response.
Now coming back to the MAIN POINT, which is to obtain a loan to cover my TUTION FEE only, I have been to my bank. Infact I had a chat with my personal advisor and she told me that they would be able to discuss this loan thing only once i obtain the government guarantee, which again is based on my acceptance to a Business school. So, in the nutshell, I cannot move forward with the whole process until I get the confirmation letter. I hope you understand this. Anyways I will approach another bank just to get a second opinion.
And btw, a student loan is different from a normal loan in that a student loan entitles you for a tax rebate whereas a normal loan, there is no such provision. Also for a student loand, the repayment period begins once the studies are over.

And regarding financing options from the country of institution, it depends on the reputation of the School and whether that school has tie-ups with any banks. For instance, OXford, Cambridge and London Business Schools, each have a tie up with banks concerning education loan. But I wanted to explore the option of getting a loan from Finland. If its too difficult, then I will have to approach the banks which have a tie-ups with these institutuons.

[Upphew]

Anyways I will approach another bank just to get a second opinion.

Make clear to them that you don't mean the 300-440/month government backed loan.

[CH]

Now coming back to the MAIN POINT, which is to obtain a loan to cover my TUTION FEE only, I have been to my bank. Infact I had a chat with my personal advisor and she told me that they would be able to discuss this loan thing only once i obtain the government guarantee, which again is based on my acceptance to a Business school. So, in the nutshell, I cannot move forward with the whole process until I get the confirmation letter. I hope you understand this. Anyways I will approach another bank just to get a second opinion.
And btw, a student loan is different from a normal loan in that a student loan entitles you for a tax rebate whereas a normal loan, there is no such provision. Also for a student loand, the repayment period begins once the studies are over.

Well, since you seem to be the expert on student loans...

How about you go right back to the bank and ask them how much they are willing to loan you as a student loan with the same terms of payback etc in addition to the government backed amount. Or, if you don't want to do the leg work, just check the home pages of any bank for the "bonus surprise bonanza" amount that you can lend under those terms. Or, check www.vero.fi for what kind of loans the tax man will approve for the taxes (I'll help you out... http://www.vero.fi/nc/doc/download.asp?id=2250;52154 right at the top of first page... I'll leave it as an excersize to find the Enlish corresponding page).

I seem to have run out of any more metal wire.

[Pursuivant]

Well, the thing is:

a) Student loans and financial aid for those eligible are available for studying for "degrees".
b) MBA is not a "degree", so its not "studying". Master of Economics is a "degree".

And it is not you who defines what is a "degree" so no use trying to convince me MBA is a "degree" - the Finnish Government decides that and you need to convince *them*.

So now we get over that issue - as Finland has no tuition fees - the "Student loan" system hasn't been geared for paying for tuition fees. However there are Finns studying in "private" institutions (even for MBA), and they do finance it with loans. So it is not something you can not get a loan out for - you just have to take it out as a personal loan with collateral or a guarantor. The KELA handouts and Finnish student loans cover the same expences as they do in Finland, which is jack.

Hope this clarifies why you get the blank stares.