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08-07-2011 07:55 AM

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<strong>MDHE e-distribution list</strong> – The Missouri Department of Higher Education' s electronic news service. To sign up for this service, visit http://www.dhe.mo.gov/mdhedigest/signup.shtml.

<strong>MOREnet</strong> – Missouri Research and Education Network. Provides networking capabilities and internet access for colleges and universities, elementary and secondary schools, state agencies, libraries, and community networks.
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<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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08-07-2011 08:21 AM

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gold standard (E5)<br />A basis for the value of a national currency which can take the form of a GOLD BULLION STANDARD or a GOLD EXCHANGE STANDARD.<br /> <br /><em>Reference</em><br />Gold Standard Commission (1982) Report to Congress of the Commission on the Role of Gold in the Domestic and International Monetary System, Washington, DC: US Government Printing Office.
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impact multiplier (EO)<br />The impact on a national economy in a given year of the EXOGENOUS VARIABLES for that year and the ENDOGENOUS VARIABLES for prior years.<br /><em>Reference</em><br />Goldberger, A.S. (1959) Impact Multipliers and the Dynamic Properties of the KleinGoldberger Model, Amsterdam: NorthHolland.
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<strong>Recall (of a claim)</strong> – A lender request to a guarantor to return a default claim that has already been filed but has not yet been paid because the claim no longer qualifies for default.
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08-07-2011 09:12 AM

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<strong>College Access Initiative</strong> – Included in the Deficit Reduction Act of 2005, this initiative requires guarantors to undertake activities to promote access to postsecondary education. Information and tools may cover topics such as college planning, career preparation, and paying for college and may be made available via websites, publications, or other programs.
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<strong>Private loan</strong> – A non federal student loan, also referred to as “alternative loan.” Private loans are offered to students and/or parents by many, many lenders, secondary markets, and other private entities.

<strong>Consummated loan</strong> – A loan for which disbursement funds have been delivered to the borrower. For example, a loan is considered consummated when the borrower cashes a paper check from the lender or when the school applies the proceeds of an ACH transfer to the student' s account.
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08-07-2011 09:39 AM

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<strong>Post-Withdrawal Disbursement (PWD)</strong> – A disbursement made when the calculation for the school' s return to Title IV funds (R2T4) result in the student being eligible to receive more Title IV aid than was disbursed or delivered prior to his or her withdrawal.
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<strong>Satisfactory repayment arrangement</strong> – A specified number of consecutive, on-time, voluntary, reasonable and affordable full monthly payments made by a borrower to the holder of a loan in default. Satisfactory repayment arrangements may be established by a borrower to either regain Title IV eligibility, or rehabilitate a defaulted loan, or to consolidate a defaulted loan.
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cash (E4)<br />The most LIQUID of ASSETS, consisting of coin and banknotes; often defined as a zero-interest asset, although Goodhart and others have suggested that interest could be paid by running a national lottery on the serial numbers of the notes. Commercial banks also regard deposits at the 'central' bank as cash.<br /> <br /><em>Reference</em><br />Goodhart, C.AX. (1986) 'How can noninterest bearing assets co-exist with safe interest-bearing assets?', British Review of Economic Issues 8: 1-12.
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08-07-2011 10:07 AM

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<strong>Lender of Last Resort (LLR)</strong> – A student loan lender that agrees to make Stafford Loans to qualified students, regardless of the type of school, school' s CDA, etc. The MDHE offers an LLR program for Missouri students.

reserve requirements (E5)<br />The proportion of the total assets of a COMMERCIAL BANK, or other deposit-taking institution, which a CENTRAL BANK insists should be kept in cash or short-term securities, usually with less than two years to maturity. Altering reserve requirements is a means of expanding or contracting the total money supply of an economy. In the USA, reserve requirements were instituted as early as the First Bank of the United States, founded 1791, in the twentieth century they were in force from 1913 to 1980. Reserves could be held in vault cash, a balance kept at a reserve bank or at a member bank which keeps reserves at the FEDERAL RESERVE.<br /> In the USA after the implementation of the MONETARY CONTROL ACT 1980 Various reserve requirements have been set: for net transaction accounts, 3 per cent of deposits (12 per cent for deposits over $40.4 million); for non-personal time deposits, 3 per cent if maturity of less than 1Y, years (zero if greater maturity) and 3 per cent on Eurocurrency liabilities.
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global depository receipt (G1)<br />A bank certificate referring to domestic shares sold internationally through the foreign branches of a bank_<br /><em>See also:</em> American Depository Receipt

<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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08-07-2011 10:31 AM

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refunding (E5, H6)<br />Issuing new government secuntles to replace bonds or other securities which have matured.<br /><em>See also:</em> overfunding

<strong>Lender</strong> – A lender in the FFEL Program may be a national or state chartered bank, a mutual savings bank, a credit union, an insurance company, or other entity that provides the actual student loan funds to schools and borrowers.

<strong>SAY</strong> – Scheduled Academic Year. The fixed period, as published in a school' s printed materials, that generally begins and ends at the same time each year. The SAY is the period to which the statutory definition of an academic year must be applied and must meet the statutory requirements of an academic year as defined by the U.S. Department of Education.

<strong>CTSF</strong> – Change Transaction Send File, the CommonLine file type used to send change transactions to guarantors, lenders, and/or servicers so that FFEL Program loans may be updated. CTSFs are divided into pre-disbursement transactions (@1-09) and post-disbursement change transactions (@1-10).
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08-07-2011 10:58 AM

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HICKS and MEADE in the UK and with TOBIN, KLEIN, MODIGL!ANI and Blinder in the USA. To undertake this enhancement of Keynes's ideas, the 1s LM framework and the PHILLIPS cuRvE have been extensively used. This theoretical approach often refers to the failures of markets, particularly the labour market that does not clear because money wages are often inflexible downwards. A major policy prescription of this school of economics is DEMAND MANAGEMENT to keep an economy in equilibrium.<br /><em>Reference</em><br />Benassi, C., Chirco, A. and Colombo, C. (1994) The new Keynesian economics, Oxford and Cambridge, MA: BlackwelL

<strong>Meteor</strong> – Financial aid database providing information on students and their aid awards for FFEL Program loans, Pell Grants, state scholarships and grants, and other sources of aid. Also referred to as Meteor Network or Meteor Project.
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lump-sum tax (H2)<br />A tax of the same amount whatever the activity or circumstances of the taxpayer, e.g. a POLL TAX. A lump-sum tax on a firm increases its fixed costs but leaves MARGINAL cosT the same, and thus the output and price of a profit-maximizing firm are unaffected in the short run. In the long run, however, when all costs are variable, a high lump-sum tax would shut down some firms.
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contract curve (DO)<br />1 A curve connecting the points of tangency of two individuals' respective INDIFFERENCE CURVES such that the MARGINAL RATE OF SUBSTITUTION for them is the same.<br /> 2 AN rsoQUANT showing where the marginal rate of technical substitution is the same for the production of two different goods.<br /><em>See also:</em> Edgeworth box

<strong>NCHELP</strong> – National Council of Higher Education Loan Programs, the FFEL Program national association for guarantors and secondary markets. NCHELP provides tools, manuals, documents, and resources online, including the Code of Federal Regulations (CFR). Visit the NCHELP e-library at www.nchelp.org.
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<strong>Gallagher grant</strong> – Missouri' s Charles Gallagher Student Financial Assistance Program, administered by the MDHE until the 2006-07 academic year and replaced by Access Missouri August 28, 2007.

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08-07-2011 11:51 AM

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<strong>MODEL Direct</strong> – A web loan delivery product offered by the MDHE and developed by ASA, the MDHE' s servicer. MODEL Direct allows schools and lenders to inquire on loans or borrowers, submit change transactions, manage files, and guarantee new loans within a real-time environment. See http://www.dhe.mo.gov/model.shtml for more information.

<strong>MODEL</strong> – Missouri Direct for Educational Loans, the MDHE' s system used to guarantee and track FFEL Program loans and borrowers.
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<strong>LTH</strong> – Less than half time, an enrollment status indicating the student is carrying less than a half-time academic workload, as determined by the school. Students who are less than half time are not eligible to borrow FFEL Program loans.

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08-07-2011 12:17 PM

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restrict exports to a country with trade deficits as a means of protecting its industries.

<strong>Grant</strong> – Financial aid that does not have to be repaid, such as the Missouri Charles Gallagher Student Financial Assistance Program, administered by the MDHE.
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<strong>Electronic Funds Transfer (EFT)</strong> – The transfer of funds via an electronic method such as wire, which is realtime, or Automated Clearinghouse (ACH), an overnight process.
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asset sweating (M2)<br />Raising bank finance on the security of the property owned by a company. Sweating can also be effected by SECURITIZATION of the property.
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<strong>PWD</strong> – Post-Withdrawal Disbursement, a disbursement made when the calculation for the school' s return to Title IV funds (R2T4) result in the student being eligible to receive more Title IV aid than was disbursed or delivered prior to his or her withdrawal.

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08-07-2011 01:11 PM

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<strong>Release of proceeds</strong> – Delivery of loan proceeds by the school to the borrower. (Note: This term is NOT equivalent to the lender' s process of disbursing funds to the school.)

<strong>MDHE e-distribution list</strong> – The Missouri Department of Higher Education' s electronic news service. To sign up for this service, visit http://www.dhe.mo.gov/mdhedigest/signup.shtml.
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records the flow of capital assets between one country and the rest of the world. World interest rates will have a major influence on a country's capital account, as capital mobility is stimulated by differences in the rates of return to financial assets in different countries.
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######ual discrimination (J7)<br />The unfavourable treatment of one ###### in matters of wages, recruitment or promotion. In the USA federal legislation first addressed itself to this in civil rights legislation of the 1960s; in the UK under the EQUAL PAY ACT 1970 and ###### DISCRIM!NAT!ON ACTS 1975, 1986; in the EUROPEAN COMMUNITY under Article 119 of the TREATY OF ROME. The economic analysis of discrimination dates back to John Stuart MILL's writings on the wages of women in his Principles.<br /><em>See also:</em> crowding hypothesis; occupational segregation
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08-07-2011 01:39 PM

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feminist economics (D1)<br />The economic analysis of women's issues, especially the economics of the family, participation in the labour market and welfare benefits. It is usually assumed that women are oppressed according to INTERPERSONAL UTILITY COMPARISONS and ought to be compensated. The concepts of scarcity, selfishness and competition are the main ideas that feminist economists seek to challenge.<br /><em>See also:</em> female economists
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neighbourhood effect (QO)<br />An EXTERNALITY, or spillover effect, which has a spatial impact. Industrial pollution provides many examples of costly effects; beautiful buildings and gardens mcrease the welfare of nearby residents.

limited general competitive bidding (D4)<br />A form of competition limited to those who have stated qualifications.

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08-07-2011 02:06 PM

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<strong>SFA</strong> – Student Financial Aid or Assistance.

<strong>POP3</strong> – Post Office Protocol Version 3, a method to permit workstations on the internet to access a mailbox server.

<strong>FFY</strong> – Federal Fiscal Year, the period of October 1st through September 30th.
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<strong>Late conversion</strong> – The scheduling of a FFEL Program borrower' s first payment due date beyond the normal regulatory time limits.

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flow of funds account (E1)<br />A component of a system of NATIONAL INCOME accounts showing financial transactions between the major sectors of the economy. The transactions analysed are purchases and sales, and transfers such as taxes and dividends. The sectors used are different types of business, non-profit organizations, central and local government, banks, savings institutions, insurance, other finance and the rest of the world.<br /><em>Reference</em><br />Bain, A.D. (1973) 'Flow of funds analysis: a survey', Economic Journal83: 1055-93. National Bureau of Economic Research (1962) The Flow of Funds Approach to Social Accounting: Appraisal, Analysis and Applications. Studies in Income and Wealth, Vol. 261, Princeton, NJ: Princeton University Press.
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<strong>Repayment schedule</strong> – The legal addendum to the promissory note stating the terms of repayment and fulfilling disclosure requirements. The repayment schedule includes the total principal and interest due, the regular installment amount due, and the number of installments required to pay the loan in full. It also includes the interest rate, the due date for the first payment, and the frequency of installments.

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08-07-2011 03:00 PM

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<strong>National Council of Higher Education Loan Programs (NCHELP)</strong> – The FFEL Program national association for guarantors, secondary markets, collection agencies, and other organizations. NCHELP provides tools, manuals, documents, and resources online, including the Code of Federal Regulations (CFR). Visit the NCHELP e-library at www.nchelp.org.
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<strong>AGI</strong> – Adjusted Gross Income, an income figure on federal tax returns used to perform need analysis and verification.
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categorical grant (H2)<br />A grant from a central or federal government to a lower level of government to be spent on only a particular category of expenditure. Such grants can be based on a formula (e.g. reflecting the size and age distribution of the population) or on a project (e.g. introducing a new educational curriculum). They usually require matching funds by state or local government.

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beggar-my-neighbour policy (F1)<br />A PROTECTIONIST foreign trade policy which attempts to improve the domestic economy at the expense of foreign countries. This policy was at the heart of much of
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<strong>Comaker</strong> – One of two married individuals who jointly consolidated their federal students loans before July 1, 2006. This term also applies to two parents who were joint borrowers of a PLUS Loan made prior to April 16, 1999.

<strong>Participation agreement</strong> – Agreement with the MDHE that permits a school to participate in the state student assistance programs.
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less developed country (00)<br />A country with a low per capita income, a large agricultural sector and often little industrialization, high population growth, low life expectancy and able to export only a few products. Previously called 'an underdeveloped country'.<br /><em>See also:</em> economic development; poverty

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international monetary system (F3)<br />The financial arrangements between sovereign states in force at a particular time. These consist largely of agreements for the fixing of exchange rates and the settlement of debts, particularly balance of payments deficits. Countries have a choice between market mechanisms under FLOATING EXCHANGE RATES or an order managed by an international body. The most famous international monetary systems have been the GOLD STANDARD, BRETTON WOODS and the EUROPEAN MONETARY SYSTEM.<br /> <br /><em>Reference</em><br />Solmon, R. (1977) The International Monetary System, 1945-76: An Insider's View, New York and London: Harper & Row.<br /> Tew, B. (1982) The Evolution of the International Monetary System, 1945 to 1981, London: Hutchinson.

<strong>Federal Direct Loan Program (FDLP)</strong> – The William D. Ford Direct Loan Program, a federal student loan program through which the U.S. Department of Education loans money directly to students and parents rather than having the loans funded by private lenders, as in the case of the FFEL Program.

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premium pay (J3)<br />Additional pay for working outside normal hours (overtime) or in special circumstances, e.g. at night, or at a higher rate of PRODUCTIVITY.

arithmetic progression (C6)<br />A series of numbers increasing by a constant increment called a common difference, e.g. 2, 4, 6, 8. MALTHUS asserted that the means of subsistence increases arithmetically.<br /><em>See also:</em> geometric progression

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one country, two systems (P4)<br />A CENTRALLY PLANNED EillNOMY which permits CAPITALISM to operate in part of it. This arrangement was designed for Hong Kong when it ceased to be a British colony in 1997 so that capitalism could survive in the planned Chinese economy.
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employment contract (J2, J3)<br />The terms on which a person is hired by a firm. Williamson distinguishes four types: recurrent spot contracting (by which an employee is hired from day to day); contingency claims contracting (being hired depends upon the occurrence of an event, e.g. ball-boys are needed at Wimbledon on a fine day); authoritative contracting (a master-slave contract, a modem example might be military conscription); and INTERNAL LABOUR MARKET contracting (a flexible form of hiring to the senior posts of an organization determined by managerial rules).<br /><em>See also:</em> implicit contract theory; invisible handshake <br /><em>Reference</em><br />Williamson, O.E., Wachter, M.L. and Harris, J.E. (1975) 'Understanding the employment relation: the analysis of idiosyncratic exchange', Bell Journal of Economics 6: 250-78.

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<strong>HT</strong> – Half Time, 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.
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08-07-2011 05:15 PM

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Consumer Expenditure Survey (C8)<br />US survey of the current expenditure of US residents which began in 1979. It is used to revise the CONSUMER PRICE INDEX and is conducted by the Bureau of the Census for the Bureau of Labor Statistics. Information is collected from a panel which is interviewed five times every three months, and from records kept by participating households over a specified fortnight.
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<strong>Marguerite Ross Barnett Memorial Scholarship Program</strong> – A scholarship program established for Missouri students who are employed at least 20 hours a week while enrolled in 6 to 11 credit hours. The MDHE administers this scholarship program. More information is available at: http://www.dhe.mo.gov/rossbarnett.shtml.
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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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Lautro (G2)<br />Life Assurance and Unit Trusts Regulatory Organization, a London-based SELFREGULATORY ORGANIZATION. One of its earliest policies, in 1987, was to recommend a cut in the commission of independent agents on the sale of life bonds from 5.2 per cent to 3 per cent over a four-year period, harmonizing the commission with the rate for the sale of UNITTRusrs.<br /><em>See also:</em> Financial Services Act 1986
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export (F3)<br />The sale to a resident of another country of a domestically produced good or service. Unless an economy is self-sufficient, it will be necessary for it to export in order to be able to pay for the imports demanded by its residents. The volume of a country's exports has many determinants, including the exchange rate, marketing methods, delivery times, product design and government subsidization, especially the guarantee of export finance so that firms will not be discouraged from exporting by the risk of buyers' defaulting. Exports net of imports are included in the GROSS DOMESTIC PRODUCf.<br /><em>See also:</em> import
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<strong>Loan maintenance</strong> – Term used to describe change transactions, such as disbursement cancels, disbursement date changes, etc.
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delta stock (G1)<br />The least traded stocks and shares which are not quoted on the STOCK EXCHANGE AUTOMATED QUOTATION SYSTEM.
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D s satisfy both producers and consumers by purchasing quantity AB.

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<strong>NATTS</strong> – National Association of Trade and Technical Schools.
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<strong>SFY</strong> – State Fiscal Year, a period from July 1 through June 30 of the following calendar year for the state of Missouri.

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marzipan layer (G2, M1)<br />The managers below the level of director or partner who are responsible for the operations of a financial institution such as a bank or brokerage house,
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customs union (FO)<br />A group of countries with a coMMON EXTERNAL TARIFF but with free trade amongst themselves and free movement of labour and capitaL The EUROPEAN COMMUNITY is a major example of such an arrangement. Many theories about customs unions are based not only on how free trade based on COMPARATIVE ADVANTAGE is beneficial but also on WCAT!ON THEORY to understand the changes within the cus- toms union, e.g. the movement of capital and population towards GROWTH POLES creating a dynamic effect of a union.
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<strong>In-school status</strong> – Occurs when a Stafford Loan borrower is enrolled in school at least half time, the grace period has not yet been used, and the borrower has not yet entered repayment. If the borrower returns to school before the grace period is fully used, the borrower continues to qualify for in-school status. Also be referred to as the “interim status.”
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<strong>MCCA</strong> – Missouri Community College Association. May be found on the world wide web at www.mocca.org.
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Harsanyi, John Charles, 1920-2000 (B3) Educated at Budapest, Sydney and Stanford Universities. After teaching at Budapest, Queensland, Stanford and Wayne State Universities, he became professor of business administration at the University of California at Berkeley from 1964 to 1990. He examined what it means for rational persons to make ethical judgements, and the games theory problem of establishing appropriate behaviour for rational persons, companies and nations in conflict with each other. His major works include Rational Behaviour and Bargaining Equilibrium (1977) and A General Theory of Equilibrium Selection in Games (1988, with Reinhard Selten). He shared the NOBEL PRIZE FOR ECONOMICS in 1994 with NASH and SELTEN.

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replacement labour force (J2)<br />The use of migrant labour to fill job vacancies created by the movement of indigenous workers from areas of decline to the more prosperous regions of a country. In the UK, for example, immigrant labour in the 1950s took up employment in declining areas, especially northern England and the West Midlands, where inferior jobs existed as a consequence of the shift of UK workers to the south east of England.

<strong>Capitalized interest</strong> – Accrued interest that is periodically added to a loan' s principal balance. Interest accrues on a subsidized Stafford Loan after the grace period is completed and the borrower enters repayment. For unsubsidized Stafford, parent PLUS, and Grad PLUS Loans, on the other hand, interest begins to accrue after the first disbursement of the loan. Lenders may capitalize any accrued interest on a quarterly basis or at other scheduled time frames.

<strong>SAR</strong> – Student Aid Report, the paper output record provided to the student after completing the FAFSA. The SAR contains the student' s EFC and results of federal database matches. The electronic version of the record, which is sent to the school, is called the ISIR.

<strong>Suspension</strong> – Suspension of the eligibility of a school, lender, or servicer to participate in a guarantor' s programs for a specified period of time until specified requirements are met.
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National Enterprise Board (L5)<br />A UK public corporation created by the Industry Act 1975 to encourage industrial investment and restructuring; in a sense a SUCCessor to the INDUSTRIAL REORGANIZATION coRPORATION. It used its funds to invest in private sector firms to effect mergers. Also
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portfolio optimization (Gl)<br />Seeking the best trade-off between RISK and reward. A technique used to strike this balance is the mean variance optimization approach to diversification.

Great Depression (N1)<br />1 The period 1873-96 in the English economy when agriculture was especially depressed.<br /> 2 The period 1929-36 when world trade, partly through PROTECTION and the cautious FISCAL POLICIES of national economies, suppressed the level of economic activity.<br /><em>See also:</em> beggar-my-neighbour policy; depression; recession; slump <br /><em>Reference</em><br />Bernstein, M.A. (1988) The Great Depression, New York and Cambridge: Cambridge University Press.<br /> Friedman, M. and Schwartz, A.I. (1966)<br />The Great Contraction, Princeton, NJ: Princeton University Press.<br /> KindJeberger, C.P. (1986) The World in Depression, 1929-39, London: Allen Lane (reprinted Harmondsworth: Penguin, 1987).<br /> Saul, S.B. (1969) The Myth of the Great Depression, London and Basingstoke: Macmillan.<br /> Temin, P. (1976) Did Monetary Forces Cause the Great Depression?, New York: WW Norton.
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financial liberalization (G2)<br />The removal of government regulations, as happened in the USA in the 1980s, to permit the prices and availability of finance to be market determined. Principal forms of liberalization include deregulation of interest rate fixing and barriers to capital flows between countries and industries.
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entrepot (F1)<br />A commercial centre or warehouse engaged in the distribution of goods throughout the world.

crashometrics (G1)<br />The quantitative analysis of crashes in security or currency markets. This exercise provides a means of estimating the exposure of a portfolio to a market crash.
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<strong>Freely associated states</strong> – States under U.S. jurisdiction whose residents are eligible for federal student aid. Includes the Republic of the Marshall Islands, the Federal States of Micronesia, and the Republic of Palau.
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Psychology, Chicago: University of Chicago Press.<br /> - (1976) The Constitution of Liberty, London: Routledge & Kegan PauL - (1982) Law, Legislation and Liberty: A New Station of Liberal Principles, London: Routledge & Kegan PauL Wood, LC. and Woods, R. (1991) Friedrich A. Hayek. Critical Assessments, London: Routledge.

beta stock (G1)<br />Five hundred or so stocks and shares which are the most actively traded on the STOCK EXCHANGE AUTOMATED QUOTATION system after alpha stocks.<br /><em>See also:</em> alpha stock; delta stock; gamma stock
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<strong>NAACP</strong> – National Association for the Advancement of Colored People.
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<strong>Three times rule</strong> – The federal requirement that no single installment of a graduated or income-sensitive repayment schedule may be more than three times greater than any other installment.

pension mis-selling (G2)<br />The sale of complicated pension schemes without explaining the full nature of the pension scheme. In the UK this led in the 1990s to many retired people having lower than expected incomes.

<strong>Plain Language Disclosure statement</strong> – Document providing FFEL Program terms and other information in “plain language” (instead of jargon).

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original issue discount bond (G1)<br />A type of JUNK BOND issued at a large discount below its par value with couPoN rates below the market yields at the time of issue. After an initial period, the coupon rate is raised.

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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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