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Interest rate – The maximum rate of interest that is charged on student loans is defined within federal statutes. In the FFEL Program, lenders often reduce the interest rate from the statutory maximum during the in-school or repayment periods for borrowers who pay on time or who meet specified eligibility requirements.

consol (G1) A consolidated fund stock ('Consolidated Annuity') of the UK government issued as an unredeemable fixed interest security. They were introduced in 1751 as a means of replacing a variety of government bonds of different MATURITIES and interest rates with a single government stock. The yield on consols has often been used as a measure of the long-term rate of interest. The consols currently traded in the UK have nominal interest rates of 2V. per cent and 4 per cent.
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closed shop (J5) An arrangement between a TRADE (LABOR) UNION and a management to restrict employment in a particular place of work or occupation to members of that union. A pre-entry closed shop is based on the rule that only trade union members can apply for work; in a post-entry closed shop a worker must become a member before or on joining the firm. The Trade Union and Labour Relations Act 1974 (UK) passed during the period of office of a Labour government made possible universal enforcement of the closed shop. The subsequent aim of Conservative governments was to remove the pre-entry closed shop (Industrial Relations Act 1971 and Employment Act 1980); the European Court in 1981 ordered the UK government to end the rail closed shop. The strongest argument in its favour is the equitable view that, as all employees benefit from a union's bargaining, all should pay union dues. Some employers have argued that a closed shop promotes harmonious industrial relations. In the USA, the post-entry closed shop is called a 'UNION sHoP'. Even in countries such as France where the closed shop is illegal, shops of this kind still exist in the docks and in printing.
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Scholarship – Financial assistance that is usually based on merit or ability and that does not have to be repaid.

London Discount Market Association (G1) London's nine DISCOUNT houses that constitute the UK's short-term money market.

American College Testing (ACT, Inc.) – An independent not-for-profit organization that provides assessment, research, information, and program management services in the areas of educational testing and planning, career planning, and workforce development.
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rental payment (D3) The payment for the use of a FACfOR oF PRooucrioN. Such payments are common in the hire of capital equipment but, in a sense, the concept applies to labour as wages are paid for labour services, not for the purchase of the worker as would be the case in slavery.

domestic credit expansion (E5) Growth of the money supply, adjusted by the deficit or surplus on the BALANCE oF PAYMENrs current and capital accounts. It consists of the PUBLIC SECTOR BORROWING REQUIREMENr less net sales of public sector debt to the non-bank private sector and bank lending to the private and overseas sectors. The reasoning behind this measure is that a balance of payments deficit leads to a reduction in the expansion of the domestic money stock through excess spending overseas. Conversely, a money supply expands with a balance of payments surplus, increasing foreign currency reserves. This measure was intended to produce a monetary aggregate suitable for open economies. It was first used in the UK in 1968 when it was monetary target popular with the INTERNATIONAL MONETARY FUND. See also: monetarism; money supply
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SMTP – Simple Mail Transfer Protocol, a syntax for text messages sent from one computer to another using email.

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fair trading (F1, M3) Genuine free trade in which there are no attempts to have hidden subsidies to export industries and protection of domestic industries to prevent imports, e.g. by imposing rigorous quality controls. Without fair trading in the EU, the Single Market will be impossible. 2 Selling under a system of free competition. See also: dumping

U.S.D.E. – U.S. Department of Education, which may also be referred to as ED, DE, or simply the Department. May be found on the world wide web at www.ed.gov.
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Delivery of proceeds – Delivery of loan proceeds by the school to the borrower. Also referred to as “release of proceeds.”

model company management (G3) The recommendations of the MYNERS coMMITTEE concerning the presentation of annual information to shareholders, shareholder meetings and the need to follow best practice in disclosure.

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