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<strong>Proportional proration</strong> – A required calculation used to determine the applicable annual loan limit for an undergraduate student if the student' s program or remainder of the program is less than a full academic year in length.
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<strong>Extended repayment schedule</strong> – A repayment schedule option available to borrowers with outstanding principal and interest in FFEL Program loans totaling more than $30,000. An extended repayment schedule may provide for standard or graduated installments not to exceed a period of 25 years. Note: this option is only available to borrowers who meet the qualifications on or after October 7, 1998.
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permanent income hypothesis (E2)<br />A theory of the CONSUMPTION FUNCflON that income can be divided into permanent income (expected lifetime income) and transitory income (e.g. WINDFALL GAINs) so that permanent consumption is a function of permanent income and transitory consumption a function of transitory income. Before FRIEDMAN, the theory was suggested by several writers.<br /><em>See also:</em> absolute income hypothesis; lifecycle hypothesis; relative income hypothesis<br /><em>Reference</em><br />Friedman, M. (1957) A Theory of the Many savings banks were of this nature until extensive financial deregulation encouraged diversification.
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