Overseas students who want to study the MBA in US institutions will face real problems trying to secure student loans in order to study the programme, according to the National Association of Student Financial Aid Administrators (Nasfaa).The reason being the credit crunch which is squeezing the US hardest of all.

The main problem is that the majority of lenders are becoming insolvent and in just the past month 50 lenders have suspended their loan schemes. The University of Chicago has even told its graduate students that its lending partner was unable to renew its line of credit owing to the dire economic conditions.

The lenders that are deciding to brave the storm are facing costs that are surging upwards every day.

Lenders are concerned that the high prices may lead to students defaulting on payments. This would be particularly bad for the US lenders as the the cost of loan repayment is particularly high for students from outside the US who apply for loans from US institutions.