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08-04-2011 09:44 PM

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land economy (QO)<br />The study of property valuation and the economic factors determining the capital costs of land and buildings within an ECONOMY. This study comprehends the examination of the development of bare land to meet the market demands of the economy for accommodation, supply and property investments, ranging from those of agricultural land through to the optimal development of urban properties, e.g. offices and retail developments. Land economy matches demand for accommodation with the needs of the property investor and the restrictions of planners.

<strong>PJ</strong> – Professional Judgment, the flexibility given to a financial aid administrator to make adjustments to student eligibility for federal Title IV aid and for Missouri student aid on a case- by-case basis.

state capitalism (P2)<br />A transitional stage to coMMUNISM, as typified by the original Soviet economic system. The state owns almost 100 per cent of industrial capital and agricultural land, using a hierarchy of industrial ministries, agencies and enterprises to run the productive sector of the economy.<br /><em>See also:</em> Soviet-type economy
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& L (E4)<br />A measure of the US money supply consisting of M3 + non-bank public holdings of US savings bonds + short-term treasury securities + commercial paper + bankers' acceptances (net of money mutual market fund holdings of these assets).

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<strong>State Fiscal Year (SFY)</strong> – A period from July 1 through June 30 of the following calendar year for the state of Missouri.
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08-04-2011 11:51 PM

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<strong>NOG</strong> – Notice of Loan Guarantee and Disclosure Statement, which is sent to lenders upon the guarantee of a loan by the MDHE. The lender then sends a copy of the NOG to the borrower.
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Denison residual (04)<br />Advances in knowledge and associated causes of economic growth. Denison discovered this important growth determinant in his study of the USA and eight West European countries for the period 1950-62.<br /><em>Reference</em><br />Denison, E.F (1967) Why Growth Rates Differ, ch. 20, Washington, DC: Brookings Institution.
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<strong>Origination Fee</strong> – A fee charged to offset the federal government' s cost of interest subsidies (for subsidized Federal Stafford Loans) and reinsurance payments for loans that either default or are eligible for forgiveness or discharge. This fee, if charged to the borrower, may be subtracted from the borrower' s loan proceeds at the time of disbursement.
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<strong>GP</strong> – Guarantee and Print, a type of application process flow within the FFEL Program and outlined in CommonLine file specifications. In a “GP” process flow, the school submits loan application information to the guarantor for guarantee. After the loan is guaranteed, either a paper MPN is mailed to the borrower for completion or the application is made available online for the borrower to complete and sign.

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<strong>Professional Judgment (PJ)</strong> – The flexibility given to a financial aid administrator to make adjustments to student eligibility for federal Title IV aid and for Missouri state aid on a case-by- case basis.
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08-05-2011 12:39 AM

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constant prices (DO, E3)<br />A measure of an economic variable deflated to allow for price changes; for example, the NATIONAL INCOME at constant prices would show national income for a number of years at the prices of one year.

<strong>Disbursement date change</strong> – A pre-disbursement change transaction updating the date loan funds should be issued to the school or escrow agent. May also be referred to as rescheduling a disbursement. Within CommonLine 4 files, the disbursement date change is located within the 01-09 record.

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overshooting (E6)<br />A short-term reaction to a shock greater than the response in the long run.
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actual budget (H6)<br />The national taxation and expenditure accoun ts of a government. They can be in balance, in surplus or in deficit; often COntrasted With a FULL-EMPLOYMENT BUDGET.
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coefficient of determination (C1)<br />A ratio of the explained variation to the total variation of values from a regression :L[Y(estimated)-Y(mean)f :L[Y(actual)-Y(mean)f & This ratio can range f rom 0 to 1, being 0 if all the variation is unexplained and I if all the variation is explained.<br /><em>See also:</em> linear correlation

<strong>Wire</strong> – A realtime method of transferring funds electronically.
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Smithsonian Agreement (F3)<br />A realignment of major world currencies by the GROUP OF TEN in December 1971 at the Smithsonian Institute, Washington, DC. This agreement was forced on the international financial community by US President Nixon when he ordered the US Treasury to suspend its gold sales in August 1971. Wider fluctuations of 4.5 per cent against the US dollar were permitted, the US dollar was devalued against gold by 7.9 per cent and the official gold price was raised from $35 to $38 per fine ounce. The subsequent floating of currencies, e.g. of STERLING in June 1972, quickly abrogated the principal terms of the agreement.<br /><em>See also:</em> Bretton Woods Agreement

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08-05-2011 01:24 AM

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quota (D2, F1)<br />A restricted supply of a good or service. Import quotas are used to protect domestic industries; export quotas, to stabilize expor t earnings. Under any system of rationing, a quota will be the amount allocated to a particular person or organization.<br /><em>See also:</em> non-tariff barrier; protection; tariff; volun tary export restraint & R

segmented labour market theory (J4) The supposition that the LABOUR MARKET is divided into a number of subgroups with little mobility between them and different rules for determining wages and allocating labour within them. The best example is DUAL LABOUR MARKET theory.

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<strong>DCL</strong> – Dear Colleague Letter, a communication from the U.S. Department of Education that explains, clarifies, or provides guidance regarding federal regulations and statutes.
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08-05-2011 01:49 AM

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Bretton Woods Agreement (F3)<br />An agreement signed in Bretton Woods, New Hampshire, USA, in 1944 that created the INTERNATIONAL MONETARY FUND. It set rules for exchange rate behaviour and created a pool of COMMON CURRENCIES, thereby making the IMF the world's 'lender of last resort'. This agreement was a compromise between KEYNEs's proposals for an INTERNATIONAL CLEARING UNION and Harry White's plan for an International Stabilization Fund. Par values for exchange rates were fixed in terms of gold. A country had to intervene if its exchange rate was 1 per cent above or below par. An adjustment of more than 10 per cent was permitted if the IMF thought there was a fundamental disequilibrium (a condition vaguely defined) in a country's BALANCE oF PAYMENTS. Temporary borrowings from the IMF were possible to support a currency. This GOLD EXCHANGE STANDARD of Bretton Woods was abandoned on 15 August 1971.<br /> Critics of Bretton Woods noted that the agreement did not provide a mechanism for changing inappropriate national exchange rate policies, that it failed to make national monetary and exchange rate policies compatible, and that it discouraged frequent changes in exchange rate parities. In practice, it was a DOLLAR STANDARD as most countries fixed their currencies against the US dollar. Its demise was hastened by the problems created by the Vietnam War for the US economy.<br /><em>Reference</em><br />Dormael, A. van (1978) Bretton Woods: Birth of a Monetary System, London: Macmillan. bridefare (13)<br />A welfare programme in Wisconsin, USA, enacted in 1994 that increased welfare benefits to teenage mothers who got married. Originally this amounted to $91 extra for a single mother with one child on top of benefit of $440 per month.

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<strong>Certification</strong> – The act of attesting that something is true or meets a certain standard. 1) Within the FFEL Program, the school certifies each borrower' s student loan, attesting to the fact that required eligibility criteria have been met, such as need. 2) Within the state student assistance programs administered by the MDHE, the school certifies each student' s eligibility and at the same time requests funds.

<strong>MASFAP-L</strong> – An electronic email distribution list, or listserve, maintained by the Missouri Association of Student Financial Aid Personnel. Schools and other MASFAP members may post messages, questions, and news of interest to Missouri' s financial aid community.
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<strong>CL unique ID</strong> – Abbreviation for “CommonLine unique identifier,” a sequence of numbers and letters (17 characters) typically assigned by the guarantor at the time of guarantee. Components of the unique identifier include the 6-digit school OPE ID (positions 1-6), a 4-digit school branch code (positions 7-10), a 1-digit system ID (position 11), and an incremental code (positions 12-17).

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08-05-2011 02:40 AM

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<strong>KC-RAP</strong> – The Kansas City area group of financial aid professionals, normally meeting several times a year.
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<strong>Part D</strong> – The section of Title IV of the Higher Education Act of 1965, as amended, that authorizes the William D. Ford Federal Direct Student Loan Program.
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<strong>Excel</strong> – A Microsoft spreadsheet software package. Reports available within MODEL Direct may be exported in a Microsoft Excel format.

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<strong>Last Date of Attendance (LDA)</strong> – The last day the student was physically present in class, as confirmed by the student' s attendance records. An LDA may also be referred to as an out of school date (OSD) or, if the student completed the program of study, the actual graduation date.
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Microproduction function (D2)<br />A firm's production function showing the maximum output which can be produced by its physical inputs, given the constraint of its technology.<br /><em>See also:</em> production function
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08-05-2011 03:27 AM

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<strong>Trailer record</strong> – The ending portion of a CommonLine file. The trailer record contains a summary of the preceding records, including totals, and is used to verify transmissions. In CommonLine file specifications, the trailer record is documented as @T.
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<strong>EDE</strong> – Electronic Data Exchange, a federal system for institutions to electronically transmit, receive, and correct application data, package student awards, and transmit Federal Pell Grant and direct loan information.

<strong>Payment period</strong> – The basis on which a school must schedule and deliver disbursements for a particular loan period. A payment period is determined by the structure of the school' s academic program.
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08-05-2011 03:52 AM

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FREE TRADE; RICARDO viewed it as an encouragement to production which would expand agriculture, a form of production subject to the LAW OF DIMINISHING RETURNS, and bring about a decline in the rate of profit and a STATIONARY STATE in the economy. The growing manufacturing interest also opposed these laws as PROTECTION kept up food prices and wages. The laws were repealed by the government led by Sir Robert Peel in 1846.<br /><em>Reference</em><br />Kadish, A. (ed.) (1996) The Corn Laws: The formation of popular economics in Britain, London: Pickering.

<strong>Master Promissory Note (MPN)</strong> – A common form that allows a student or parent to borrow multiple loans for multiple academic years and providing repayment obigations information (rights and responsibilities). A signed borrower MPN is required before student loan funds can be disbursed to the school.

<strong>LSDA</strong> – Late Stage Delinquency Assistance. Refers to procedures followed by Student Loan Counseling Services (SLCS) when a loan is 241 days delinquent or more. The MDHE contracts with SLCS for default aversion assistance services.
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<strong>Termination</strong> – withdrawal of the eligibility of a school, lender, or servicer to participate in a guarantor' s programs.
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08-05-2011 04:17 AM

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compound interest (E4)<br />Cumulative interest paid on both the original amount lent and subsequent interest which is added to the PRINCIPAL. If the total accumulation period is long, the total sum becomes immense compared with the original sum. Not surprisingly, Keynes asserted that 'there is no more powerful force than compound interest'.
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<strong>Web loan delivery product</strong> – An online system that allows schools, borrowers, and/or lenders to inquire on loans or borrowers, submit change transactions, manage files, and guarantee new loans via the internet. The MDHE' s product is called MODEL Direct.
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<strong>Academic Competitiveness Grant (ACG)</strong> – A new federal grant available as of July 1, 2006. Eligibility for this grant is based on high school academic performance as well as financial need. More information is available at: http://studentaid.ed.gov/PORTALSWebA...sp?tab=funding.
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<strong>GO</strong> – Guarantee Only, a type of application process flow within the FFEL Program and outlined in CommonLine file specifications. In a “GO” process flow, the school submits loan application information to the guarantor, which then guarantees the loan and takes no further action. It is assumed that either the school or the lender will obtain a signed MPN from the borrower either via paper or an electronic method.
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export requirement (F2)<br />A rule imposed by a host government on foreign investors to export a minimum percentage of their output. This is a policy response to the practice of a MULTINATlONAL company of diverting to other markets the output of a domestic producer it has taken over to the detriment of the host country's pattern of trade.
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<strong>Award</strong> – Schools award, or “package,” student aid for each year for students. Once the aid is awarded, schools send award letters to students indicating the type(s) and amount(s) of financial aid awarded for the year. (Under 34 CFR 668.16(h), the school is required to provide information about the sources and amounts of aid offered.) The financial aid award may also be referred to as the “financial aid package.”

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08-05-2011 12:36 PM

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<strong>FSA Handbook</strong> – Federal Student Aid Handbook, a guide to administering the Title IV financial aid programs, published annually by the U.S. Department of Education.

<strong>School Certification Request (SCR) process</strong> – Optional process within CommonLine file specifications whereby a C record type is generated in application send files in response to a borrower-initiated application process. With the SCR process, the application send file is sent to the school for certification after the borrower has completed his/her part of the process, including passing any required credit check.

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information agreement (Ll, L4)<br />A RESTRICTlVE PRACTICE consisting of the circulation of prices and/or costs to members of a business association with a view to encouraging them to restrict competition by setting similar product prices. In the UK such agreements, some of which have existed throughout the twentieth century, have been within the scope of restrictive trade practices legislation since 1968.<br /><em>See also:</em> competition policy

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08-05-2011 01:03 PM

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emission reductions banking (Q2)<br />An environmental control policy allowing a source of pollution which reduces its emissions more than legally required to ' bank' the right to pollute more in the future. Thus over a period of time the flow of emissions is on average at the legal limit.

<strong>State Student Financial Aid Committee</strong> – A committee of Missouri financial aid administrators established in February of 2005 to make recommendations to improve and strengthen the Missouri student financial assistance programs. (Formerly known as “the state aid program task force.” )

<strong>Financial Aid Administrator (FAA)</strong> – A staff member at an eligible school who administers financial aid programs.
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quasi-market (L3)<br />An attempt in the public sector to introduce market discipline. In the UK in the 1980s this principle was applied to the contracting out of catering and cleaning and through the !NTERNAL MARKET in the National Health Service, and in the universities where they had to bid for funds from funding councils. This market is different from a conventional market in that consumers effect their purchases using vouchers or by agents. Also non-profitmaking public organizations compete with traditional profit-making firms.<br /><em>Reference</em><br />Le Grand, J. (1991) 'Quasi-markets and social policy', Economic Journal 101: 1256 - 67.

corporate finance (G3)<br />Specialist financial services to corporations and other large organizations. Advice is given on raising new capital and on acquisitions.
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<strong>Package</strong> – Schools award, or “package,” student aid for each year for students. Once the aid is packaged, schools send award letters to students indicating the type(s) and amount(s) of financial aid awarded for year. (Under 34 CFR 668.16(h), the school is required to provide information about the sources and amounts of aid offered.)

<strong>MLN</strong> – Missouri Learners' Network, an organization that shares information, promotes educational opportunities provided by Missouri schools, and refers students to participating institutions for educational programs, courses, and learner services.
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<strong>Disbursement</strong> – 1) The transfer of loan funds by the lender to the school or escrow agent. (Note: under limited circumstances, a lender may also disburse funds directly to the borrower.) For a Federal Consolidation Loan, disbursement occurs when loan proceeds are transferred from the consolidating lender to the current holder of the loan being consolidated, which pays the original loan in full. 2) For the state student assistance programs administered by the MDHE, disbursement is the transfer of grant or scholarship funds to the school, or in some instances, to the student. Disbursement to the school occurs via EFT or master check. Disbursement to a student occurs via individual check.

<strong>Disbursement date</strong> – The date loan funds are issued to the school or escrow agent. For a paper check, the disbursement date is the date the check is issued. For an electronic funds transfer via ACH or wire, the disbursement date is the date the funds are transferred from the lender to the school or escrow agent. (Note: under limited circumstances, a lender may also issue funds directly to the borrower.)
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Big Bang (G1)<br />The DEREGULATION of the London Stock Exchange on 27 October 1986 which involved the ending of minimum dealing commissions and the distinction between dealers and jobbers. Under the fierce gale of competition, smaller firms found it difficult to survive and even the larger firms withdrew from market-making by 1990. Firms anxious to be ahead of their rivals offered grossly inflated salaries to prospective staff and the best of existing staff, making the volume of consequent redundancies greater.<br /> The seeds of the recent changes were sown in the early 1970s when UK coMPETl-

non-goal equilibrium (EO)<br />An EQUILIBRIUM state that is the consequence of the interaction of economic forces, not the conscious pursuit of a particular agent. A major case is NATIONAL INCOME in a MARKET ECONOMY.<br /><em>See also:</em> goal equilibrium

<strong>Forgiveness</strong> – The release of a borrower or any comaker from all or a portion of his or her loan obligation due to qualifying child care service or qualifying teaching service.

maturity (GO)<br />The terminal date at which a BOND, BILL or debt is due to be paid.<br /><em>See also:</em> term structure of interest rates

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<strong>Subscription reports</strong> – Standard production reports available from the MDHE and within MODEL Direct. Subscription reports may be received daily, weekly, or monthly. To subscribe to one of these reports or to change the frequency, select the Manage Subscriptions option within MODEL Direct' s Manage Reports menu.
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shock inflation (E3)<br />A once-and-for-all change in the price level which may be caused by a change in INDIRECT TAX rates or import prices or a major change in the supply of a major commodity, e.g. oiL<br /><em>See also:</em> oil-price increases
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<strong>Graduated repayment schedule</strong> – A repayment schedule under which the amount of the borrower' s payment is scheduled to change during the course of the repayment period. The graduated repayment schedule cannot exceed 10 years unless the borrower is eligible for an extended repayment period.

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<strong>DCL</strong> – Dear Colleague Letter, a communication from the U.S. Department of Education that explains, clarifies, or provides guidance regarding federal regulations and statutes.

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<strong>Automated Transfer of Money (ATOM)</strong> – The MDHE' s free disbursing service.

<strong>Half Time (HT)</strong> – An enrollment status indicating the student is carrying an academic workload, as determined by the school, that is more than half time but less than full time. For the Marguerite Ross Barnett scholarship, half-time enrollment is defined as 6-11 credit hours.

<strong>Late disbursement</strong> – A disbursement made by a lender after the end of the loan period or the date on which the student ceased to be enrolled at least half time.
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<strong>Electronic signature (e-sign)</strong> – Information in electronic format that is attached to or logically associated with an electronic record and used by a person with the intent to sign the electronic record. Students, parents, and borrowers may electronically sign the FAFSA, a FFEL Program loan application, or other student aid document.
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<strong>Last Date of Attendance (LDA)</strong> – The last day the student was physically present in class, as confirmed by the student' s attendance records. An LDA may also be referred to as an out of school date (OSD) or, if the student completed the program of study, the actual graduation date.
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<strong>Subsidized loan</strong> – A loan eligible for federal interest benefits. The federal government pays the interest that accrues on subsidized Federal Stafford Loans during the student' s in-school, grace, and authorized deferment periods.

moonlight economy (K4, PO)<br />Part of a national economy noted for extensively using cash for transactions to avoid records being kept which could be available to tax authorities.<br /><em>See also:</em> cash economy
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earnings per share (G2)<br />Pre-tax earnings divided by the number of shares entitled to a variable dividend. This ratio, when used as an indicator of the long-term growth potential of a company, should be compared with other indicators of a firm's performance, including its market share and its research and development expenditure. Earnings per share are usually larger than dividend per share as few companies distribute all of their profits.

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<strong>Source, The</strong> – MDHE' s Guide to grants, scholarships, loans and more-Outlines all of the state student financial assistance programs. This publication and all publications published by the MDHE can be requested on the Publications Order Form: http://www.dhe.mo.gov/publicationsorderform.shtml.
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eftpos (G2)<br />Electronic funds transfer at point of sale, i.e. automatic debiting of customers' bank or credit card accounts. This is the major method of introducing the cashless society but unlikely to replace the present variety of payment methods.<br /><em>See also:</em> debit card
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producer price index (E3)<br />US price index of commodities calculated by the Bureau of Labor Statistics; published since 1890. It uses sellers' prices by direct sale, or through an organized
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new industrial state (PO)<br />GALBRAITH's term for the modern economy which is dominated by a 'technostructure' of large firms dedicated to stable production and the creation of wants so that there is no deficiency of demand for their products. He argues that the planning system used can be practised by both CAPITALIST and SOCIALIST ECONOMIES.<br /><em>Reference</em><br />Galbraith, LK. (1967) The New Industrial State, London: Hamish Hamilton; Boston, MA: Houghton Mifflin.
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crisis (E3)<br />In Marxian economics, a phase of the TRADE CYCLE which is the upper turning point where an economy turns down from a boom to a recession. Marx believed that such crises were inevitable under CAPITALISM and would occur every ten years. A crisis could occur for two reasons. The preceding increase in employment pushes up wages and reduces the rate of profit below the normal level, cutting back capital accumulation. Also, producers who are slow to innovate have higher costs and may go bankrupt and cause a collapse of firms throughout the economy. Crises, according to Marxists, are inevitable under capitalism because of its continual capital accumulation without the co-ordination of investment decision making which planning would achieve <br /><em>Reference</em><br />Sweezy, P.M. (1942) The Theory of Capitalist Development: Principles of Marxian Political Economy, chs 8-10, New York: Oxford University Press; London: D. Dobson.

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political economy (A1)<br />The term used for economics in the eighteenth and nineteenth centuries and revived in recent years to reflect a policy-oriented view of the subject. Liberal political economy was founded by Adam SMITH and was concerned then with the art of managing public finances and the advising of statesmen on revenue maximization. scHUMPETER, in his History of Economic Analysis, defined it as 'an exposition of a comprehensive set of economic policies that its author advocates on the strength of certain unifying normative principles, such as the principles of economic liberalism [or] Socialism'. ROBBINS asserted that political economy is concerned with policy prescriptions. Today, this applied view of economics rejects the world of PERFEcr coMPETITION, criticizes the uncertainties of free enterprise and makes use of PUBLIC CHOICE theory.<br /><em>See also:</em> Post-Keynesians <br /><em>Reference</em><br />Lange, 0. (1963 and 1971) Political Economy, 2 vols, New York and Oxford: Pergamon.

<strong>MIME</strong> – Multi-purpose Internet Mail Extensions, a standard messaging protocol used to exchange text in languages with different character sets and multi-media email among many different computer systems that use internet mail.

<strong>Monetary adjustments</strong> – Term used within MODEL Direct for change transactions impacting a disbursement such as increasing or decreasing the certified loan amount, reducing or canceling a disbursement, etc.

NATIONAL PLAN attempted to introduce this type of planning for nine months m 1965-6.
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