One of the leading companies, focusing on refinancing and student loans, CommonBond, has partnered with Prodigy Finance, the ET reports. The aim is to help post-graduate MBA students in the US by connecting them with loan options to finance their studies.
The CommonBond-Prodigy Finance initiative will allow students outside of the US, who come to CommonBond seeking loan options, to secure their funding for business post-graduate education through Prodigy, on its behalf, determines the terms and conditions of the student loans.
According to David Klein, CEO and co-founder of CommonBond, Indian students will profit the most from the partnership since they represent the largest base of international students in the US.
The market for international students financing their degrees in the US business schools is awfully underserved largely due to the lack of funding options from traditional financial institutions […] Our partnership with Prodigy Finance will make US business schools more accessible and affordable for international students,
Klein told ET in a telephonic interview.
The aim of the CommonBond-Prodigy partnership is to meet an important need in the post-graduate student lending market in the US.
According to the US Department of Education, in 2012, 13% of total 472,000 post-graduate students in the US business schools came from outside of the US. The CommonBond and Prodigy Finance are trying to resolve a big issue for the international students in the US, as the funding options for them are quite limited. Students from outside of the US are not eligible for federal loans and are required to have a credit-worthy US resident cosign in order to get a loan from a US bank.
We understand first hand just how difficult it is to finance an international MBA, which is why we launched Prodigy Finance eight years ago as a way of offering borderless loans to international MBA students while enabling investors to earn a competitive financial and social return by investing in these students. We are excited about our partnership with CommonBond as it furthers our vision to create global funding options for international post-graduate students,
Cameron Stevens, CEO and co-founder of Prodigy Finance, said in a release.