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<strong>Special allowance</strong> – A percentage of the daily average unpaid principal balance paid to a lender by the U.S. Department of Education on eligible FFEL Program loans. Special allowance is only paid when the regulatory maximum student loan interest rate is below market rates.
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limited partnership (K2, M1)<br />A partnership consisting of limited, or sleeping, partners who provide finance rather than contribute to management and general partners who manage the firm. Limited partners have no personal liability; general partners have unlimited liability.
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