Asking friends or family for financial help requires being honest about one's financial situation, including the possibility of and timetable for paying money back. It also involves treating the request as a business transaction, keeping lines of communication open and showing gratitude for any loan or gift received.Know More
According to Survivorship A to Z, people asking for money should be able explain how much they need, why they need it, and how and when they plan to pay it back. If there is a chance that the loan cannot be repaid, that possibility must be discussed openly.
Asking a friend or family member for a loan or gift of money usually introduces awkwardness into the relationship. Keeping the entire transaction on a businesslike basis helps diffuse discomfort. Drawing up paperwork regarding a loan is one step that can help to preserve a relationship, and offering to pay interest at a low rate can help keep the transaction professional. People should avoid asking friends or family to borrow money on a credit card, since interest mounts up quickly, and the card holder's credit rating could be harmed if repayment is late.
Expressing gratitude is crucial when taking a loan or gift from a friend or family member. A handwritten note of thanks is a small step to take when a friend has helped with money.Learn more in Credit & Lending
Examples of financial intermediaries include credit unions, financial advisers, insurance companies and mutual funds. A financial intermediary is a financial institution that helps a business or individual save or borrow money.Full Answer >
There are several sources of financial aid for college, such as the federal government, state governments, colleges and universities, private organizations, banks and lending companies. For a student to qualify for financial aid, he must apply for the specific aid he is interested in and meet the qualifications set. Financial aid for college students include loans, scholarships, grants and work-study programs.Full Answer >
Financial aid is based on the premise that the cost of attending college for a student is higher than the expected contributions from his family. The cost of attendance is calculated as the sum of the tuition, transport, room and board, books, supplies and other miscellaneous costs. The expected family contribution is subtracted from the cost of attendance to determine a student's financial need in a given year.Full Answer >
Student loans need to be paid back while grants do not. Grants that do not have to be paid back include the Pell Grant and the Federal Supplemental Education Opportunity Grant (FSEOC).Full Answer >