Parent Contribution
The parent contribution is an estimate of the portion of your educational
expenses that the bank/financial institution believes the parents can
afford. It is based on their income, the number of parents earning income,
assets, family size, the number of family members currently attending
a university, and other relevant factors. Students who qualify as independent
are not expected to have a parent contribution.
Principal
Principal is the amount of money borrowed under the loan. Interest is
charged as a percentage of the principal.
Professional Courses
Courses such as M.B.B.S., M.B.A., Fashion Designing, and Computer Programming
are termed as professional courses.
Repayment Schedule
The period during which the applicant actually starts repaying the principal
loan amount and the interest.
Scholarship
A form of financial aid given to students to help pay their education
expenses. Most scholarships are restricted to paying all or part of the
tuition expenses, though some scholarships also cover room and board expenses.
A scholarship is a form of gift aid and does not have to be repaid. Many
scholarships are restricted to students in specific courses of study or
for those with academic, athletic or artistic talent.
Security
Security is some form of providing comfort to the lending institution
against default or failure of repayment. It could be by way of a collateral
or guarantee.
Term
The term of a loan is the number of years (or months) during which the
loan is to be repaid.
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