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08-01-2011 09:22 PM

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08-01-2011 09:24 PM

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08-01-2011 09:42 PM

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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>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.

<strong>E-sign</strong> – Process of electronically “signing” a FFEL Program loan application, FAFSA, or other student aid document by providing information in an electronic format such as within a web loan delivery product (e.g., the MDHE-ASA product, MODEL Direct).
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<strong>Award Letter</strong> – Schools send award letters to students indicating the type(s) and amount(s) of financial aid awarded, or packaged, each year. Under 34 CFR 668.16(h), the school is required to provide information about the sources and amounts of aid offered.
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<strong>Expected Family Contribution (EFC)</strong> – The amount the student or student' s family is expected to pay toward the student' s cost of attendance as a result of the Federal Need Analysis Methodology.

learning-by-doing (03)<br />The increase in PRODUCTIVITY resulting from repeated performance of a particular activity. SMITH recognized this in his discussion of the DIVISION OF LABOUR principle. Modem theorists of growth and international trade have considered this form of learning as an explanation of technical progress independent of the scale of production.<br /><em>Reference</em><br />Arrow, K.J. (1962) 'The economic implications of learning by doing', Review of Economic Studies 29: 155-73.
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<strong>Need</strong> – The student' s COA less the EFC, which is used to determine a student' s eligibility for most of the federal student aid programs as well as some state and institutional aid programs. For the Missouri Gallagher Grant, need is defined as the COA less the EFC less estimated Pell eligibility.
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<strong>EDExpress</strong> – A PC-based software offered by the U.S. Department of Education to schools to administer the Federal Pell Grant Program and the direct loan program.
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08-01-2011 11:17 PM

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black gold (Q4)<br />1 Coal (originally).<br /> 2 Oil when it became a more important source of energy than coal.

<strong>Financial Assistance and Outreach Group</strong> – The division within the MDHE that administers Missouri' s state aid programs, such as the Charles Gallagher Student Financial Assistance Program.
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<strong>Loan transfer</strong> – Any action that results in a change of the system used to service a loan.
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08-01-2011 11:40 PM

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gilts (E5, Gl)<br />UK government security with a guarantee that interest will be paid and capital repaid on its redemption day (if any). The term arose because of the high value of these bonds.

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Consolidated Fund (H1)<br />The fund of the UK central government into which all direct and indirect tax revenues and other receipts are paid. Prior to its establishment in 1787, separate funds existed for each type of government revenue.<br /><em>See also:</em> funding
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08-02-2011 12:04 AM

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Engel, Ernst, 1821-96 (B3)<br />German statistician who was educated at the Ecole des Mines, Paris. Director of the statistical bureaux of Saxony from 1850 to 1858 and of Prussia from 1861 to 1862. in 1857 he propounded Engel's law, one of the first major empirical findings of lasting importance.

<strong>Code of Federal Regulations (CFR)</strong> – The regulations from the U.S. Department of Education relating to the federal student aid programs are codified in Volume 34. Part 668 governs the student assistance general provisions. Part 682 regulates the FFEL Program.

<strong>Response File</strong> – The CommonLine file type used to return responses to application send files and change transaction send files. A response file contains a snapshot of the processor' s database after processing an application for guarantee or after posting a change transaction. A response file generally contains “R records” but may also contain “M records,” if desired.

empty nester (Jl)<br />A married person in late middle age whose children have moved elsewhere leaving an 'empty nest'.<br /><em>See also:</em> Third Age
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08-02-2011 12:52 AM

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<strong>Holder</strong> – An eligible lender that owns a FFEL Program loan.
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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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08-02-2011 01:16 AM

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<strong>Common Account Maintenance (CAM)</strong> – The FFEL Program industry' s electronic data standard used by lenders, servicers, and guarantors. Created by the National Council of Higher Education Loan Programs (NCHELP), CAM specifies the type of content, record format, and file structure for sharing data on borrowers and their loans.

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08-02-2011 01:42 AM

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grey area (R5)<br />Part of a country in declining prosperity.
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<strong>CB</strong> – The abbreviation for Campus-Based aid. Campus-based aid programs include Federal Work Study (FWS), the Federal Perkins Loan Program, and the Federal Supplemental Educational Opportunity Grant (FSEOG). “CB” also indicates a type of Dear Colleague Letter specifically addressing campus-based aid programs.

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08-02-2011 02:07 AM

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<strong>AY</strong> – Academic year; the standard federal definition of an academic year is July 1 through June 30. This acronym may also be used to abbreviate “aid year” and “award year.”

<strong>Term-based school</strong> – A school that uses standard academic terms, such as quarters, trimesters, or semesters.
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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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08-02-2011 02:34 AM

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invisible foot (D3)<br />A reduction in redistribution caused by political competition. Invisibility comes about because of the difficulties of observation, quantification and measurement. An example of an invisible foot would be the movement of people between locations to obtain a better mix of taxes and public expenditure, thereby invisibly creating an efficient resource allocation.<br /><em>See also:</em> fiscal mobility; Tiebout hypothesis
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<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.

<strong>FFEL Program</strong> – The Federal Family Education Loan Program loans that were authorized by Title IV, Part B, of the Higher Education Act of 1965, as amended. FFEL Program loans are funded by private lenders and are guaranteed by state agencies or other non-profit organizations. FFEL Program loans include Federal Stafford (subsidized and unsubsidized), Federal PLUS (for parents or for graduate/professional students), and Federal Consolidation Loans.
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08-02-2011 03:01 AM

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<strong>NCA</strong> – North Central Association Commission on Accreditation and School Improvement, an academic accrediting body.

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inferior good (DO)<br />1 A good demanded less as consumers' incomes rise.<br /> 2 A good with an INCOME ELASTICITY OF DEMAND of less than one. Some foodstuffs, e.g. potatoes, rice and margarine, are in this category. An inferior good can be distinguished from a normal good in an income demand curve.<br /> See also: Giffen paradox infession (E3)<br />World inflation caused by a breakdown in the world monetary system leading to world RECESSION. This concept was introduced to provide a better explanation of the STAGFLATION of the 1970s.
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08-02-2011 03:26 AM

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commodity tax (H2)<br />A tax on a good, usually taking the form of a SALES TAX or an EXCISE DUTY.
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<strong>Financial Aid Noon Group (FANG)</strong> – Mid-Missouri' s group of financial aid officers, normally meeting several times a year in Columbia.
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<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.

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08-02-2011 03:54 AM

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<strong>Anticipated disbursement date</strong> – The date loan funds are expected to be issued to the school or escrow agent. A school establishes the anticipated disbursement date(s) for a loan at the time of certification.

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08-02-2011 04:21 AM

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Prebisch-Singer thesis (F1)<br />A thesis arguing that as the TERMS OF TRADE have moved against developing countries, protection and import substitution should be used to promote industrialization in such countries. This approach was advocated as a means of reducing income inequalities between nations.<br /><em>Reference</em><br />Prebisch, R. (1950) The Economic Development of Latin America and its Principal Problems, New York: United Nations.<br /> Singer, H.W. (1950) 'The distribution of gains between investing and borrowing countries', American Economic Review 40: 473 - E5. precautionary demand for money (E4) The CASH needed to meet unforeseen expenditures. The expansion of credit facilities has reduced this demand.<br /><em>See also:</em> speculative demand for money; transactions demand for money
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market-maker (G1)<br />A stockbroker who both carnes out clients' orders to buy or sell and trades on his or her own account. By being prepared to buy and sell at all times, he or she creates a market in stocks and shares. The London STOCK EXCHANGE copied this system from the NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATION SYSTEM when the jobbing system peculiar to the UK was abandoned in 1986. But London did not

bimodal frequency curve (Cl)<br />A FREQUENCY CURVE with two maxima.
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they do not possess, e.g. part of the sky, to another person, or to devise other fraudulent investment schemes.<br /><em>See also:</em> bubble; Securities and Exchange Commission

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08-02-2011 04:45 AM

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<strong>Publications Order Form</strong> – The MDHE makes available, free of charge, a variety of publications to assist in providing financial aid officers and students with information about financial assistance, debt management, and default prevention. More information is available at: http://www.dhe.mo.gov/publicationsorderform.shtml.

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euro interbank offered rate (F3)<br />The interest rate at which euro interbank term deposits of the eurozone are offered by one prime bank to another.
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proto-industrialization (N6)<br />Domestic manufacture controlled by intermediaries who use manufacturers as homeworkers, taking away their independence as sole proprietors.<br /><em>See also:</em> homework <br /><em>Reference</em><br />Mendels, FE. (1972) 'Proto-industrialization: the first phase of the industrialization process', Journal of Economic History 32: 241 - 61.

scalar principle (M1)<br />Within organizations, this principle dictates that managerial authority and responsibility should flow continuously from the highest person to the lowest in the hierarchy.

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08-02-2011 05:33 AM

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Accelerated Cost Recovery System (H2)<br /> US federal tax allowance introduced in 1981 and subsequently modified. Most capital goods were assumed to have a life of three, five or ten years; as many were more durable, this system was a means of cutting corporate taxation. An example of SUPPLY-SlOE ECONOMICS.

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audit market (M4)<br />The accounting firms and their clients concerned with the checking of company accounts to ensure that legal requirements are met and that financial transactions are accurately recorded. A free audit market is proposed for the EUROPEAN UNION SO that the same auditors could examine the accounts of all of a firm's European subsidiaries.

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08-02-2011 05:58 AM

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<strong>School-Based Software (SBS)</strong> – Software used by the school to certify loans and generate or load CommonLine files. SBS is often used by schools that do not have a FAMS or for which the FFEL Program module of their FAMS is not used.

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Rambouillet (November 1975) approved of intervention to maintain the orderliness of financial markets (Canada was absent).<br />Puerto Rico (June 1976) made the reduction of unemployment and inflation central goals.<br />London (May 1977) announced growth targets for the Group of Three.<br />Bonn (July 1978) extended growth targets to all of Group of Seven, using West Germany as the initiator of growth.<br />Tokyo (June 1979) fixed ceilings for oil imports.<br />Venice (June 1980) changed the emphasis of economic policy to the lowering of inflation rates.<br />Ottawa (July 1981) announced the goals of cutting public sector debt and reducing the rate of growth in the money supply.<br />Versailles (June 1982) ordered a study of intervention to stabilize exchange rates.<br />Williamsburg (May 1983) ordered a study of the international monetary system.<br />London (June 1984) tackled the world debt problem by announcing arrangements for debt rescheduling.<br />Bonn (May 1985) continued to support strict fiscal and monetary policies.<br />Tokyo (May 1986) agreed on more economic co-operation and ordered a study of appropriate economic indicators.<br />Venice (June 1987) announced continued support for the LOUVRE ACCORD; also Japan agreed to reflate its economy.<br />Toronto (1988) provided a framework for the rescheduling of Third World debt.<br />Paris (1989) was principally concerned with the global environment and international traffic in drugs.<br />Houston (1990) discussed the aftermath of the collapse of communism in Eastern Europe, set up a study of appropriate methods to revive the Soviet economy and agreed to phase out subsidies to farmers.<br />London (1991) agreed to co-operate on keeping interest rates low, encouraging greater personal savings and reducing emissions which contribute to 'global warming'.<br />Munich (1992) failed to produce agreements to stimulate the world economy but urged the completion of the URUGUAY ROUND of GATT and the cutting of government budget deficits to lower interest rates.<br />Tokyo (1993) asked the USA, Canada and European countries to cut their fiscal deficits and Japan to bolster domestic demand. Unemployment was to be cut through non-inflationary growth.<br />Naples (1994) agreed to take steps to reduce high unemployment levels. Leaders were pleased with the reduction in inflation.<br />Halifax (1995) urged the reform of the IMF and the World Bank to provide emergency financing to cope with Mexico-type liquidity crises.<br />Lyons (1996) agreed to write off 80 per cent of the debts of poor countries in six years.<br />Denver (1997) admitted Russia as an associate member and urged the continuance of democracy in Hong Kong; the USA resisted European demands for a reduction in greenhouse gas emissions.<br />Birmingham (1998) agreed to strengthen financial architecture to avoid new financial crises but no agreement on extending debt relief to developing countries.

<strong>Mapping Your Future (MYF) Online Stafford Exit Counseling Leaflet</strong> – A guide to completing student loan exit counseling online through Mapping Your Future, 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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08-02-2011 06:24 AM

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data-mining (C1)<br />Persistent and repeated attempts to find significant relationships between variables. However, the excessive zeal of the researcher may produce a false relationship. This misuse of ECONOMETRics gives undue prominence to insignificant economic relationships.
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08-02-2011 06:49 AM

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demand deposit (G2)<br />Funds held at a bank with a notice period of less than seven days. They can take many forms, including CHECKING ACCOUNTS, certified cashier's and officer's cheques, travellers' cheques, LETTERs oF CREDIT sold for cash, withheld taxes, withheld insurance and TIME DEPOSITS whose notice of withdrawal has expired.<br /><em>See also:</em> NOW account

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<strong>PRI</strong> – Participation Rate Index, a cohort default rate appeal option for postsecondary institutions with a low percentage of students participating in the federal loan programs.
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<strong>Missouri College Guarantee Program</strong> – A scholarship program based on financial need as well as high school and college academic achievement and administered by the MDHE through the 2006-07 academic year. This program was replaced by Access Missouri August 28, 2007.
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08-02-2011 12:54 PM

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<strong>Permanent resident of the United States</strong> – A person who meets certain requirements of the U.S. Citizenship and Immigration Services (USCIS), a division of the Department of Homeland Security (DHS). (Formerly known as the INS. On March 1, 2003, the INS transitioned into the DHS and was renamed the USCIS.)
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<strong>American Student Assistance (ASA)</strong> – the MDHE' s servicer for FFEL Program loans.
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instrument variable (E6)<br />An economic variable directly controllable by a governmental authority responsible for an economic policy. These variables include bank reserve ratios and short-term interest rates.<br /> See also: goal variable; target variable <br /><em>Reference</em><br />Tinbergen, J. (1970) On the Theory of Economic Policy, Amsterdam: NorthHolland.

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08-02-2011 01:21 PM

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Automated Real-time Investment Exchange (G1)<br />A computerized arrangement for dealing in shares set up by MERCHANT BANKS in the City of London in 1974 to bypass the INTERNATIONAL STOCK EXCHANGE and thus save brokers' commission. It never attracted a high proportion of the London trading volume.
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limit order (G1)<br />An order to buy a SECURITY at or below a specified price or to sell it for at least a particular price.<br /><em>See also:</em> market order
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megacorp (L2)<br />A large global corporation controlled by its executives, not its shareholders. These corporations have been able to replace smaller competitive firms because technological change made possible production ECONOMIES OF SCALE and national and international markets. Also, the modernization of financial markets enabled the raising of capital to finance mergers and the expansion of existing firms and advances in accounting and management science removed managerial DISECONOMIES as a barrier to growth. But continued expansion of megacorps is always threatened by the powers of tough governmental coMPETITION POLICIES to break up firms that have acquired too much monopoly power.
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08-02-2011 02:12 PM

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compliance cost (DO)<br />The cost of complying with a government regulation, including taxation. Such costs are incurred by the private sector and by governmental organizations below the level of central/federal government. The costs of compliance include accountants' fees and the OPPORTUNITY COST of the time spent filling in forms.
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normal good (DO)<br />A good whose demand increases as income rises. Such a good will have an INCOME ELASTICITY OF DEMAND more than one.<br /><em>See also:</em> inferior good normal price (04)<br />MARSHALL's notion of an equilibrium price_<br /><em>See also:</em> natural price

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<strong>FT</strong> – Full Time, an enrollment status indicating the student is carrying a full academic workload as determined by the school.
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<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.
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<strong>Mapping Your Future (MYF) 10 Financial Fitness Tools</strong> – A guide to completing student loan exit counseling online through Mapping Your Future, 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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currency run (G2)<br />A great increase in the public's demand for cash because of the belief that other forms of finance, including CREDIT CARDS, will be ineffective. At the time of the beginning of the new millennium, 1 January 2000, many believed that only coins and banknotes were reliable at a time when widespread computer failures were possible.

<strong>WIA</strong> – Workforce Investment Act, a student financial aid program administered by the Missouri Department of Economic Development, formerly known as the Job Training and Partnership Act (JTPA).
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degrees of freedom (C1)<br />The number of observations in a sample minus the number of population PARAMETERS to be estimated by the sample.
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08-02-2011 05:46 PM

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expected monetary value (E4)<br />The product of the probability of the ith outcome and the value of the ith outcome:

labour-augmenting technical progress (03)<br />Technical progress which raises output with the same number of hours of labour input as at full employment. government, employers and labour concerning labour market rules, working conditions and pay. This is more evident m European countries than in the USA.
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08-02-2011 06:11 PM

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flex mex (Q2)<br />Methods rich countries employ to attempt to achieve reduction targets for green- house gas em1ss1ons. These methods include investing in reductions in other countries, especially by joint implementation, EMISSION REDUCTIONS BANKING and clean development mechanisms.
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<strong>CL4</strong> – CommonLine Release 4, the most widely used CommonLine file format within the FFEL Program. The CommonLine Release 5 (CL5) formats, although in existence for many years, were never widely adopted and implemented by FAMS vendors or FFEL Program participants.

mothballing (D2)<br />The preservation of unused productive capacity in working order in case a change in demand or costs makes resumption of production viable.
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nodal pricing (D4, Q4)<br />A set of prices related to each node of a system such as electricity transmission. The opposite of ZONAL PRIClNG.
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08-02-2011 06:35 PM

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endowment effect (G2)<br />An increase in a bank's profitability as a result of a rise in interest rates.
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<strong>DFee</strong> – Default Fee, a fee required by the Deficit Reduction Act of 2005. All Stafford and PLUS Loans guaranteed on or after July 1, 2006 must be assessed a one percent fee. The fee either must be deducted from the borrower' s loan proceeds at the time of disbursement or paid by a third party from other non-federal sources (such as a lender or servicer). This fee is also referred to as FDF.

<strong>Multiple disbursements</strong> – Disbursement of FFEL Program loans in two or more installments of approximately equal increments.
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<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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<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.
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Chancellor of the Exchequer (H1)<br />UK finance minister who is the ministerial head of the Treasury. The Chancellor is responsible for proposing changes in public expenditure and taxation, the conduct of monetary policy nationally (apart from the independent setting of interest rates) and internationally and all currency matters<br />See also: Monetary Policy Committee

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