Financing a VERY expensive investment

They like to assure you that financing should be the last consideration when you plan to study at an ivy-league MBA
Everything will be resolved, so they claim.
(p/s. you most probably can't borrow to finance living expenses from a Asian bank)

Well, I manage to kinda solve mine... after much pulling of hair (mine..)and frustrations due to earlier miscommunication and misinformation ...
In the process, I have probably self-taught a mini-module on financing for a business venture with minimal capital :p, the importance of positive relationships and network (because the banks need co-applicants), and financial analysis of leveraging options (a.k.a loans...)

It is extremely important to obtain from the bankers ALL relevant information. Keep asking if there is anything they have yet disclosed, because from my experience, they somehow reveal gradually the terms and conditions, charges $$$ etc, perhaps so not to scare us poor students away?

Eg,
- Different processing fee may be applied for different number of co-applicant. The difference for the bank to just 'process' the loan can amount to over $1000.
- If you need a buffer for the loan amount approved to prepare for an unexpected drastic forex movement, what's the cost?
I was offered to pay an additional $400 admin. fee for such service. The cost is upfront and not refundable even if I don't eventually utilize that extra amount. Did some calculations and figured that it won't unnecessary for my case since my tuition fee instalments are all due within the next 5.5 months.
I applied a simple analysis of option pricing (in theory).

a) the buffer my approved loan amount already gives.
b) the maximum threshold for the exchange rate to rise beyond what my loan amount can absorb.
c) the estimated risk of such drastic forex movement between now and the last instalment.
d) estimated extra cost to be paid in cash. I used 2-3 rates to calculate my cost.
e) compare (d) with the option fee charged by the bank.
f) take into consideration of cashflow needs


Perhaps the following considerations would also be useful as you explore your options.

- If the bank requires the co-applicant (ie. guarantor who is required to disclose their income and liability) to be a family member, holds a residency status, is below a certain age, has a good income etc.
- If the bank allows your guarantor to have access to the loan account. May need to compromise on your privacy.
- Any penalty on refinancing or early redemption of loan

And, I recommend any loan owner to get insurance. It provides the co-applicant, who kindly agree to risk their asset and creditability with the bank, a better peace of mind.