MCLEAN, Va., Feb. 12 /PRNewswire-USNewswire/ -- Responding to a request
from the Graduate Management Admission Council(R) (GMAC(R)), a leading
international bank has joined with experienced service providers in student
financial aid to create a new pilot lending program for international students
who attend graduate business schools around the world.
The pilot is prepared to provide at least $500 million in loans to
students in about 40 business schools in the United States and Europe,
beginning with the 2009-10 academic year.
International students, who comprise a high percentage of all U.S.
graduate business school enrollment, have been especially hard-hit by the
financial crisis. They are not eligible for federal loans and several major
lenders have terminated the "no-cosigner" student loan programs that were
widely used by this group.
"Our role has been to act as a 'convening authority,' bringing together
business school administrators, lending organizations, and other resources to
help develop a solution to this challenge," said David A. Wilson, GMAC
president and CEO. "Schools greatly value the talent and diversity that
international students add to the classroom, and we all want to ensure that
these students and future world leaders continue to have access to graduate
The new lending structure is designed to be school-centric and
school-controlled and is not dependent on any particular bank or group of
banks. Students who borrow under the program will not be required to secure
co-signers. Schools involved in the program will not own loans, incur
up-front costs, or have liability for individual loan defaults.
A key participant in the project is Kevin Moehn of Moehn Management,
Inc., a new company established to bring lending organizations together to
facilitate student loans through a program that "delivers a sustainable and
dependable structure for business schools to finance international students."
Moehn helped create the MBA LOANS program that provided billions of dollars in
low cost loans to graduate business school students. Most recently, he was
executive vice president of Sallie Mae, responsible for developing numerous
successful programs to meet the special borrowing needs of diverse groups of
Wilson added that GMAC, which is a non-profit education organization of
leading graduate business schools worldwide, may serve as an advisor to the
program, but will have no management, operational, or financial interest.
"Our job is to serve and help our schools," Wilson commented. "GMAC has been
a catalyst in this process. We were able to initiate and influence significant
change, without actually being a part of it."
GMAC, founded by a group of leading business school deans in 1954, also
owns the Graduate Management Admission Test(R) (GMAT(R)), which is the world's
leading predictor of success in graduate management education and is taken by
more than 250,000 students annually in more than 100 countries.
For further information:
For further information: Judy Phair of Graduate Management Admission
Council, Direct: +1-703-245-0660, Mobile: +1-202-903-3227 Web Site: