INSEAD Alumni Create MBA Bond for Student Loans

International business school INSEAD has formed a partnership with Prodigy Finance, a company specializing in international educational finance, to offer all of the school’s MBA applicants a new international loan program, the school announced Monday.

Founded by three INSEAD alumni, the project addresses a complex and global need to finance higher education without the involvement of any bank. The initial pilot launched in 2007 and has expanded today to cover 198 INSEAD MBAs representing 57 nationalities. INSEAD reports that in December 2010, Prodigy will provide loans to an additional 160 students.

The Prodigy MBA Bond for INSEAD also provides alumni and other investors the opportunity to earn a return on their investment while funding a diversified pool of students.

“We have worked with Prodigy Finance over the last four years to bring to market a comprehensive finance solution for our diverse group of globally minded MBA participants,” says J. Frank Brown, dean of INSEAD.

“This investment vehicle enables our students to expand their global business skills while alumni and other investors contribute to the development of tomorrow’s leaders and enjoy steady returns.”