Financial Aid and Funding for

Financial Aid and Funding for International Students The objective of this work is to research the financial aid and funding similarities and differences for international students at private vs. public colleges and universities in the United States. This work will answer the question of whether there are federal funding restrictions and look at what some institutions have done in order to overcome these restrictions.

The work of Altbach entitled: "The Coming Crisis in International Education in the United States" relates that in order to keep pace with the global world "American universities will need to be international institutions." (nd) Information concerning financial aid, specifically for international students states, at least on one website, that education in the United States is "very expensive" since each year the cost for tuition, room and board will be approximately $15,000 to $40,000 a year in an undergraduate institution varying in relation to the specific school one attends.

For students from other countries, or international students who travel to the U.S. To study, there are practically no venues of financial aid however students from Canada and Mexico are exceptions to the rule. Generally, grants, scholarships and loans from public and private entities are only for citizens of the United States and international students are restricted from these sources in funding.

(eduPASS: The SmartStudents Guide to Studying in the U.S.A., 2007) Upon having made a review of the literature in this area revealed is the fact that there are, while very few, some banks in the United States that will make students loans to the international student however, the loan requires a co-signer that is a United States citizen or permanent resident who has a good credit history. The type of visa may present a restriction in receiving a student loan.

However, some international student do qualify for the Federal Stafford and PLUS loans. The Astute Student Loan is one that has been established as a private program allowing students attending schools in the United States to receive loans of a maximum of $40,000 per year with a 20-year loan schedule. The minimum one may borrow is $1,500 per year. International students must have a U.S. citizen cosigner with good credit. Interest rates and fees depend upon the cosigner credit history.

Another program is the 'Canadian Higher Education Loan Program (CanHELP) which is a program designed to assist Canadian students in pursuing college education in the United States. The International Education Finance Corporation (IEFC) in collaboration with Bank of America, Fleet Boston, Citizens Bank, and the Education Resources Institute (TERI) loan students as much as the full cost of the education, which includes the student's tuition, room and board, and fees.

The maximum amount the graduate student is loaned per year is $15,000 unless the students has a cosigner and then the entire educational cost may be loaned. The minimum loan amount per year is $1,000. Students are allowed 20 years to repay the loan. A $50.00 per month payment minimum is set and provisions for deferment are also included in the loan agreement. The work entitled: "Is the U.S.

Right for You?" published in the Princeton Review states that "of the 1.4 million students pursuing postsecondary education outside their home countries, more than one-third chose to study in the United States." (the Princeton Review, 2007) U.S.

schools makes the offering of: 1) Academic excellence; 2) Variety of educational opportunity; 3) Cutting-edge technology; 4) Opportunities for research, teaching experience and practical training; 5) Flexibility; 6) Support services for International students; 7) Campus life; and (8) global educational." (Princeton Review, 2007) In the work of Miller and Huff, entitled: "International Students and Medical Education: Options and Obstacles" it is related that colleges in the United States are increasingly seeking "to attack a geographically diverse student population" and this is true of the smaller liberal arts colleges throughout the United States.

Miller and Huff state that: "Indeed, many undergraduate admissions offices now use a 'need-blind' financial aid policy, which means that foreign students from all economic levels can now consider an undergraduate education in the United States." (Princeton Review, 2007) it is extremely difficult for individuals who are not permanent residents or citizens in the United States to be granted admission to medical school in the U.S.

And for those who do apply there are two primary barriers, which are: 1) the lack of funding for foreign students; and 2) the small number of American medical schools who will consider applications from foreign students." (Miller and Huff, 2004) For the foreign students who enters the medical school in the United States a requirement exists for these students to "escrow the equivalent of one to four years' tuition and fees (U.S. $40,000 to U.S.

$200,000) Miller and Huff state that the international students should be encouraged to "seek information about loans that may be available from their home government." (Miller & Huff, 2004) Many of the lesser developed nations provide funding and financial support for medical students education but require that the student practice medicine in their home country for some set period of time after graduation for the purpose of repayment of the financial support.

It is related by the California Institute of Integral Studies that employment on campus for F-1 visa holders is permitted up to 20 hours each week and 40 hours a week during breaks in the school year however, it is related that these positions are not guaranteed and that work at school positions are very limited in number. The work of Kargbo and Yeager (2007) entitled: "The Race to Attract International Students" states that: "The U.S.

has long been a magnet for the world's top college students, and many of them...stay in the U.S. after graduation and contribute to the country's economic competitiveness. By one recent estimate, they help pump more than $13 billion annually into the U.S. economy, and many become lifelong economic contributors by remaining in the U.S. through employment or marriage. For 50 years the U.S.

benefited as the number of the valuable international college students rose continuously." (2007) the following illustration shows the distribution of the total number of student visas issued in 2006 by country. Distribution of Total Number of Student Visas Issued in 2006 (by Country) Source: Kargbo and Yeager (2007) Stated to be the top sending countries of students to the United States during 2006 were the countries of: 1) South Korea; 2) China; 3) India; 4) Japan; 5) Taiwan; 6) Saudi Arabia, 7) Mexico; 8) Turkey; 9) Brazil; and 10) Germany.

(Kargbo and Yeager, 2007) It is becoming more and more difficult for the United States to attract foreign students due to intensification of competition from Australia, Canada and the United Kingdom, which are stated to have "...better national marketing, more specialized programs for foreign students and generally lower tuition costs." (Kargbo and Yeager, 2007) Additionally many of the governments of foreign countries are putting policies into place that encourage the students to stay in their own country to attain their education.

If the United States is to "...retain its position as the destination of the greatest number of foreign students - and the advantage that such students afford in the battle for global economic competitiveness - the U.S. will have to be increasingly proactive in international marketing, simplify visa processing and increase affordable educational opportunities." (Kargbo and Yeager, 2007) The work entitled: "International Students and U.S.

Policy Choices" written by Stuart Anderson, Executive Director, National Foundation for American Policy states that "The United States has lost its edge in attacking and enrolling international students in U.S. universities. This is particularly troubling in science and engineering at the graduate school level and carries implications for America's economy, its technological leadership and its role in the world. Obstacles remain that prevent the United States from significantly increasing the enrollment of international students at U.S.

universities." (Anderson, 2007) Anderson identifies several areas in which improvements to policies may ensure "American leadership in international education and a strong scientific and technological foundation for the nation." (Anderson, 2007) Anderson states that data generated on international college students provides indications that real problems have emerged and specifically that: Enrollment by international graduate students in the United States and specifically in engineering study programs experienced an 8% decline during the time period between 2003 and 2004 according to report of the Council of Graduate Schools, while a 10% decline in life sciences international graduate students was reported for this same time period; There was an overall decline of 2.4% between the time period from 2003 to 2004 and stated in an Institute of International Education report; Between FY 2003 and FY 2004 there was a 25% decline in the number of F-1 visa issued for international students according to a U.S.

Department of State report. (Anderson, 2007) Obstacles of international student enrollment in U.S. colleges are stated by Anderson to include: 1) U.S. Visa Policy; 2) Competition; 3) Cost; and 4) the ability to work in the United States. (Anderson, 2004) The main reason that international students are denied visas is because receiving a 214(b) visa requires that the applicant prove that they do not intend to stay in the U.S. Because educational options have increased more competition is coming from other countries in this market.

Costs associated with the international student attending a U.S. school may often be too great for many international students to afford. Depending upon the outlook for work in the U.S., the international student may or may not attend college in the U.S. Costs for a college education in the United States is however, not the primary barrier.

Anderson relates that Robert Gelfond, CEO of MagiQ Technologies in New York is reported as stating that "We've seen foreign scientists try to get here to do research and can't get in who not only go elsewhere but are so upset they say they will not come to the U.S. now under any circumstances...Clearly we are losing our ability to attack talented people, since the word has spread about the difficulties of getting into the United States.

Individuals have to plan their lives and can't afford to spend months and months putting everything on hold only to discover they won't be able t come to America after all." (Andersen, 2007) the international student's contribution has been noted by the National Academy of Sciences in the May 2005 report entitled: "Policy Implications of International Graduate Students and Postdoctoral Scholars in the United States" which stated conclusions that: "International students contribute to U.S.

society not only academically and economically, but also by fostering the global and cultural knowledge and understanding necessary for effective U.S.

leadership, competitiveness and security." (Anderson, 2007) Additionally stated was that should the United States "maintain overall leadership in science and engineering, visa and immigrations policies should provide clear procedures that do not unnecessarily hinder the flow of international graduate students and postdoctoral scholars." (Anderson, 2007) In a 'Symposium Overview" entitled: "In America's Interest: Welcoming International Students - the Role of Higher Education" it is stated that: "Educational systems are developing rapidly in many parts of the world, and worldwide competition for international students has increased and become much more aggressive.

These and numerous other factors have created a complex new environment for the U.S. higher education and have contributed substantially to recent decline in the U.S.

share of the worldwide flow of international students." (in America's Interest: Welcoming International Students - the Role of Higher Education, 2007) the symposium was attended by "more than seventy respected leaders in higher education." (in America's Interest: Welcoming International Students - the Role of Higher Education, 2007) Recommendations which arose from the symposium are stated to be geared toward a reversal in the decline of international students in the United States.

The main points that were stated include those as follows: 1) Best practices exist for recruitment of students "can be found by looking abroad to competitor institutions, looking to domestic colleagues at other institutions and looking within the campus administration itself.

Novel and proven approaches in the areas of recruitment, admissions, retention, and enrollment should be examined and possibly adapted to new contexts." (in America's Interest: Welcoming International Students - the Role of Higher Education, 2007) 2) Institutions were called upon to "proactively collect data on their international students to assist with the identification of issues and barriers to international student recruitment." (in America's Interest: Welcoming International Students - the Role of Higher Education, 2007) This information can be utilized in assisting universities in the refinement of the recruitment approaches and in the conveyance of messages to prospective international students in order to ensure the efficacy and accuracy as to the target population's context.

3) There must be a focal point on each campus that works in coordinating the efforts of institutions and to make sure that the effort does not become "too diffuse or disjointed." 4) Retention programs are stated to be just as critical as recruitment programs and requires that institutions work to be sure that these student's education experience is positive. 5) International recruitment efforts must be ongoing even when the numbers do not cause concern in order to ensure that the international students continue to seek education in the United States.

Efforts for reducing financial barriers that impede international student's access to college education in the United States are focused toward six common problems, which include the following: The need for closer coordination with internal and external stakeholders that play a critical role in student financing; Overcoming internal and external policy barriers that inhibit the development of sound financial solutions for international students; Development of more effective communication strategies abroad; Allocation of more resources and energy to international student marketing campaigns; Surmounting the myriad political barriers that institutions face when looking to gain outside support for assistance programs; and Developing effective strategies for creatively utilizing alumni to support incoming international students.

The Symposium recommendations include those as follows: 1) Institutions should use "collective bargaining power with lenders to find ways to overcome the perception of risk that U.S. financial institutions have with respect to international students." (Ibid) 2) Colleges should give consideration to developing payment plans for international students in order to assist them in paying educational costs over time and without penalties. 3) Programs, to assist in the direction of the cost of higher education should be developed with a focus on international students. Examples are stated to include home-stay programs.

4) Sponsors are often associated with many efforts at a university however, in the past this venue has not been considered in connection with international students and could make the provision of diverse types of sponsorship to assist the international student. 6) Endowment fund development should be considered by college students in order to support international diversity. (Ibid, paraphrased) The following chart illustrates the enrollment rates of international students in the United States during the years 1989 to 2004. Enrollment Rates of International Students in the U.S.

(1989-2004) Source: In America's Interest: Welcoming International Students - the Role of Higher Education, 2007 The following table lists the international student by enrollment by program of study for the years 1999 through 2004. Source: In America's Interest: Welcoming International Students - the Role of Higher Education, 2007 International student enrollment is stated to be highest in the countries of the United States, the United Kingdom, Germany, France, Australia, and Japan.

The following table illustrates the enrollments in colleges in these countries of international students from 1999 to 2004 and the percentage change of enrollment during that time period in each of these countries. International Student Enrollment in the Top Six Host Countries 1999-2004 Source: In America's.