Sandy explains impact of barring International MBA's from US Banks....this appeared in hip, new online news site Scoop 44
Stimulus Puts Pinch on Foreign MBAs
By Prateek Kumar • on March 23, 2009
The desire of foreign students to work in American financial institutions may become yet another casualty of the growing impact that the current financial crisis is having on the global economy.
The reason for the cancellation of the job offers is a series of rules included in the recently passed stimulus plan that would prevent any financial institution that fired American workers and received government bailout funds from hiring foreign MBAs to join their ranks.
According to the Financial Times, approximately 50 students will be affected by BoA’s decision. However, as more financial institutions are forced to rescind job offers to foreign students, that number could quickly multiply.
"An American MBA is incredibly expensive if you can’t work in America to pay back the loan,” said Sanford Kreisberg, an independent consultant who runs the business school admissions blog HBSGURU.com. "If you have to return to China or India to pay off a business school loan, then you’ll never come to study in America unless you were already rich.”
Kreisberg also highlighted the tightening credit markets as another potential factor in dissuading international students from applying to American business schools, as these students now face greater problems for getting student loans.
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As a result of these difficulties, American business schools worry that international students will head elsewhere to earn their MBAs, thus harming the global focus of these schools while also negatively impacting the talent pool available to them.
"There are a lot of international kids who are in American MBA programs and claim they want to become IT managers, but their secret dream is to go into finance,” Kreisberg said. "This puts a real scare into the secret dreamers, and that’s the group that you’ll never be able to pull [into American b-schools] with these new regulations.”