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<strong>Unsubsidized loan</strong> – A loan that is not based on need and is NOT eligible for federal interest benefits. The borrower is responsible for the interest that accrues on any unsubsidized loan, including unsubsidized Federal Stafford Loans, Federal PLUS Loans, and Graduate PLUS Loans.

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Lombard rate (E4)<br />The rate of interest usually 112 per cent above the discount rate charged by the BUNDESBANK when acting in its capacity as LENDER OF LAST RESORT. Banks can borrow for up to three months against the collateral of certain high-quality securities, which include treasury bills and federal bonds.

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