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discount rate (DO, E4)<br />1 The rate of interest charged by a CENTRAL BANK to lower level financial institutions (usually COMMERCIAL BANKS) for discounting their bills, i_e. lending them money, often when acting as the LENDER OF LAST RESORT.<br /> 2 The rate used for discounting future values to the present. In coST BENEFIT ANALYSIS there is a distinction between a private and a social rate of discount. A private rate of discount reflects the time preference of private consumers; a so- cia! rate is based on the government's view, which can be more long-sighted as it attempts, in most cases, to take into account the welfare of future generations.
<strong>Disbursement</strong> – 1) The transfer of loan funds by the lender to the school or escrow agent. (Note: under limited circumstances, a lender may also disburse funds directly to the borrower.) For a Federal Consolidation Loan, disbursement occurs when loan proceeds are transferred from the consolidating lender to the current holder of the loan being consolidated, which pays the original loan in full. 2) For the state student assistance programs administered by the MDHE, disbursement is the transfer of grant or scholarship funds to the school, or in some instances, to the student. Disbursement to the school occurs via EFT or master check. Disbursement to a student occurs via individual check.
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income multiple (G2)<br />The amount of a loan divided by the borrower's annual income. In times of inflation multiples rise helping to sustain rising property prices. UK house loans as a multiple of incomes were on average 1.67 in 1980 and rose to 6.0 in 2000.
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<strong>BRLA</strong> – Borrower requested loan amount.
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