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<strong>FAA</strong> – Financial Aid Administrator, a staff member at an eligible school who administers financial aid programs.
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<strong>NOG</strong> – Notice of Loan Guarantee and Disclosure Statement, which is sent to lenders upon the guarantee of a loan by the MDHE. The lender then sends a copy of the NOG to the borrower.

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special employment measures (J2)<br />A variety of UK schemes to reduce unemployment of particular types. The Job Release Scheme aims to cut labour supply; the Community Programme and Enterprise Allowance aim to create jobs, especially for the long-term unemployed; and the Youth Training Scheme and Young Workers Scheme aim to cut youth unemployment.

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limit order (G1)<br />An order to buy a SECURITY at or below a specified price or to sell it for at least a particular price.<br /><em>See also:</em> market order

Economic and Social Council (FO) United Nations council elected by the General Assembly of the UN to co-ordinate its economic and social work. Its commission's remit includes population, human rights, the status of women, drugs and regional problems. It has fifty-four members.

homeless (R2)<br />The condition of being without any housing. This occurs because of insufficient income to pay the market rates for purchasing or renting a home or because of an insufficient housing supply. Rent controls by reducing the supply of private sector housing and insufficient repairs to the national housing stock magnify this problem. Geographical mobility from poorer to richer parts of a country, especially a capital city, produces hordes of homeless people who often in desperation have to use discarded cardboard boxes as shelter.

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assisted area (R5)<br />A region or smaller area of a country eligible for grants and soPT LOANS under the regional policy of a national government or the EUROPEAN UNION. The criteria for assistance to a region include its rate of unemployment, the decay of its infrastructure and its participation in a larger plan to achieve interregional balance.
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inventory cycle (E3)<br />Fluctuations in the stocks of raw materials, semi-finished goods and goods available for sale within an ECONOMY. Changes in inventories occur more frequently than fluctuations in fixed investment. Anticipated and unanticipated changes in final demand, changes in the cost of financing stockholdings and errors in the planning of production all generate inventory cycles.<br /><em>See also:</em> Kitchin cycle
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harmonization (E6, FO)<br />The process of aligning government regulations or practices to eliminate differences between parties to an agreement. A major example is the attempt to harmonize taxation within the EUROPEAN UNION.
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<strong>Recertification</strong> – A process occurring every three years through which institutional eligibility for participation in the MDHE' s state student financial assistance programs is reviewed. Institutions must complete a recertification application to maintain eligibility.

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<strong>ICM</strong> – Integrated Common Manual, a policy and procedure manual for FFELP participants. The manual and related tools may be found at www.commonmanual.org.

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real price (DO)<br />1 The nominal price of a good adjusted by a price index.<br /> 2 A relative price showing how much of one good exchanges for other goods. These prices show economic scarcity as they make possible a comparison between the price increases of particular commodities and of all commodities in general.
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<strong>Federal Need Analysis Methodology (FM)</strong> – The formula used to calculate the EFC (Expected Family Contribution), which is then used to determine a student' s eligibility for the federal financial aid, state aid, and/or institutional aid programs.
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Corn Laws (N4, N5)<br />The series of English laws dating from the reign of Edward IV which protected English agriculture by imposing tariffs on the import of corn to maintain its price; also export bounties (subsidies) were granted to farmers. CLASSICAL ECONOMISTS such as SMITH objected to this interference with

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<strong>Suspension</strong> – Suspension of the eligibility of a school, lender, or servicer to participate in a guarantor' s programs for a specified period of time until specified requirements are met.

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social dividend scheme (H3)<br />An integration of income maintenance with income taxation. The state fixes an income maintenance payment related to household size in order to prevent dire poverty. Income above this payment is subject to progressive taxation but income below it is supplemented by 'dividends' in the form of a cash sum. Although long advocated by many political parties, such schemes are difficult to implement.<br /><em>See also:</em> negative income tax; poverty trap

Glass-Steagall Act 1933 (G2, K2) Banking Act 1933 (USA) which separated INVESTMENT BANKING from deposit-taking banking with the aim of discouraging speculation and conflicts of interest, e_g. between underwriting new share issues and normal COMMERCIAL BANK lending. It banned the payment of interest on demand deposits and allowed the Federal Reserve System to set RESERVE REQUIREMENTS. Since 1980, there have been US calls for the repeal of the Act so that US banks can have as wide a range of financial products as European banks. Japan's version of Glass-Steagall (Article 65 of its Securities and Exchange Law)<br />was also much criticized <br /><em>Reference</em><br />Benston, GL (1990) The Separation of Commercial and Investment Banking. The Glass-Steagall Act Revisited and Reconsidered, London: Macmillan.

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endogenizing the exogenous (E1)<br />The inclusion in an economic model of something previously regarded as given. Classical economists, for example, regarded FULL EMPLOYMENT as given, whereas KEYNES included it as a variable in his model of the national economy. Expectations were often regarded as given but now many economic models include them.<br /><em>See also:</em> endogenous variable; exogenous variable
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<strong>NASFAA</strong> – National Association of Student Financial Aid Administrators.

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economic profit (D3, M4)<br />The surplus of revenue over all costs, including the OPPORTUNITY COSTS of employing all inputs.<br /><em>See also:</em> accounting profit

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<strong>PRCN</strong> – Program Review Control Number.

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<strong>Limitation</strong> – The continuation of a school' s eligibility to participate in the guarantor' s programs, subject to compliance with special conditions or restrictions established by the U.S. Department of Education or by the guarantor.

interest rate smoothing (E5)<br />Small changes in interest rates in the same direction, either up or down, carried out by a CENTRAL BANK often by using OPEN MARKET OPERATIONS. This attempt to stabilize output and control inflation has often been criticized for making too modest a response to macroeconomic changes.
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<strong>Part B</strong> – The section of Title IV of the Higher Education Act of 1965, as amended, that authorizes the FFEL Program.

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