The Harvard Business School has practiced what it teaches, tying up a savvy deal with Citibank that will give its students access to cheap loans.

International students, who have had trouble getting loans in the past, will especially benefit from the agreement, which does not discriminate on the basis of citizenship.

Citibank will get the status of preferred lender at HBS, though students can still find loans from other sources.

HBS tuition runs about $95,000 for two years--a lot to swallow without financial assistance for many budding business tycoons.

Director of MBA Admissions and Financial Aid James T. Millar said that the availability of tuition money is often a factor when students are deciding which business school to attend.

"I know for a fact that there have been people who have not been able to come because they have not been able to pull the money together," he said.

Despite financing problems, the yield rate and the number of applications to HBS have been very high in recent years, Millar said.

"This is not motivated by any perceived weakness. It's really starting from a position of strength," he said.

The loans are also a good move for HBS because they will help solve a recurring financial aid dilemma, Millar said.

Because international students have little access to loans, Millar said they tend to request more HBS fellowships, which are grants. However, HBS can't give away more fellowship money to foreigners and still be equitable to domestic students, Millar said.

"It hasn't been fair that just because they wouldn't get loans they would get more fellowship money," Millar said.

Millar said Citibank is making a safe investment in loaning to HBS students, who frequently go on to illustrious careers on Wall Street or as CEOs.

"Any lender is going to be interested in future income. I'm sure the fact that our students had favorable employment prospects was a factor," he said.

About one quarter of the students in HBS are international, hailing from spots all around the globe, Millar said.

"We have people from all the continents, with the exception of Antarctica," Millar said.

Citibank is the second largest holder of guaranteed student loans in the U.S., serving over one million customers with approximately $8 billion in education loans.

The loans must be repayed over a 15 year period.

There is no minimum loan and the maximum amount is the student budget less other financial aid.