PhD without funding_Admit or a polite rejection?

[Jezza]

Hi, need some advice!

I really don't know what to make of my situation right now. Should I be elated or just downright sad? Am I being too sceptical, or just playing it safe?

I received an admit from Carnegie Mellon University and the University of California, Berkeley for my PhD (Direct Entry) in Mechanical Engineering. I was given a potential research advisor for both universities and told to contact him regarding my research domain and funding. It was only upon discussing further with the profs did I realise that both the offers were without funding!! I mean, who does a PhD WITHOUT FUNDING!? That too, being an international student from India, there is no way anyone can even consider these offers! Graduate studies in itself, is way too expensive.

Now, upon explaining to the department regarding the current condition, they told me to approach other professors who would have a position available. I'm doing that right now, but it doesn't seem to be going anywhere. I have applied to Purdue, UIUC, UTexas Austin and UMichigan as well, but I still haven't received any information yet.

If my plan goes all south, I will be stuck making one of these mentioned things- I either choose to pursue my PhD in one of the universities and decide to search for a potential advisor and funding en-route (Very, Very risky). Or, I request the university to convert my admit to an M.S program (unfunded) and think of a PhD later on (Not sure if possible in the first place). 

Any advice?