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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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