Source: Http:financeequityloans.comCategory: Student LoansArticle Body: Need Is The Only Criteria That Lead To A Lot Of Assistance Aided By The Government Today. Especially When It Comes To Student Educational Needs, Every Country's Government Has Definitely Taken Pains To Invest On Them.When A Student Applies For A Financial Aid, His Financial Situation Is Analyzed And Finally The Need For Students' Loan Is Recognized. When The Family Or The Individual Himself Cannot Finance For The Educational Period Then The Need For Student Loan Comes Into The Screen To Help All Students.Many Private Companies That Exist To Care Students' Education Perform This Exact Calculation Of Need For Students' Loan. They Include College Scholarship Service (CSS) Or American College Testing (ACT), Who Calculate These Figures For Colleges, Private Institutions, And Government Agencies.These Private Organizations Are Not The One That Decides The Amount Being Offered To Students. The Amount That Is To Be Sanctioned Would Be Decided By Individual Schools, On The Basis Of Various Factors Such As Amount Of Aid Funds Available At That Particular School And How Many Other Students Are Also Applying For Aid.It Is Declared That Parents Are Not The Only To Pay A Student For His Her Education. A Substantial Amount From Student's Income And Savings Would Also Contribute To His Education. Parents Are Not The Only Ones Who Are Expected To Partially Finance A College Education. In Such Cases Need For Students' Loan Becomes An Implicit Need. In General The Formula Would Be,Total Cost Of College - Estimated Family Contribution Financial NeedNote: Source News:Congress Under The Higher Education Amendment Of 1986 Developed A Standard Formula Used By These Companies.Called The Congressional Methodology, It Is Used To Evaluate Parents' Income And Assets, In Conjunction With The Number Of Children In The Family Who Are College-aged And Their Anticipated College Costs.Estimated Family Contribution Calculator:The College Board Offers An Online EFC Calculator To Help Estimate This Amount. The List Would Be,TuitionBooks And Supplies Housing Costs (rent, Utilities) Meals Personal Expenses (clothing, Entertainment) Transportationtravel Support Of Dependents (if Applicable) Any Other Miscellaneous Expenses TOTAL COST OF ATTENDANCETerms To Be Known:EMERGENCY LOAN: Temporary, Low- Or No-interest Loan Assistance Given To Students To Help Them Cover Costs Until Their Financial Aid Is Received; Usually Granted Immediately And Without Question GRACE PERIOD: A Period Of Time After College Graduation - Typically Six To Twelve Months - In Which A Student Does Not Have To Begin Repaying A Loan Interest: A Charge For Borrowed Money; Generally A Percentage Of The Amount Borrowed (see Principal Below) LOAN CONSOLIDATION: A Repayment Option For Students With More Than One Outstanding Loan; This Lowers Monthly Payments And Makes The Repayment Process Simpler LOAN DEFAULT: The Failure To Repay A Loan According To The Terms Agreed To In The Promissory Note; A Lender May Take Legal Action To Get The Money Back LOAN DEFERMENT: A Postponement Of A Loans Repayment; Many Federal Loan Programs Have A Deferment Program LOAN DELINQUENCY: Failure To Make Loan Payments When They Are Due; Extended Delinquency Can Result In Loan Default LOAN FORGIVENESS: Demand For Repayment Of The Balance Of A Loan Is Waived Because Of Extenuating Circumstances On The Students Part, Such As Financial Hardship Or, In Some Cases, In Compensation For Community Service PRINCIPAL: In Terms Of Loans, This Represents The Amount Of Money Borrowed, Not Including Any Interest Charges (see Interest Above) SUBSIDIZED LOAN: A Loan That Does Not Accrue Interest Until The Recipient Leaves School UNSUBSIDIZED LOAN: A Loan That Accrues Interest While A Student Is Still In School
