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<strong>Application Send File</strong> – The CommonLine file type used to send application information to guarantors and/or other entities so that FFEL Program loans may be guaranteed and disbursed.

by the !NTERSTATE COMMERCE COMMISSION in 1985.<br /> <br /><em>Reference</em><br />Baumol, WJ. and Bradford, D.E (1970)<br />'Optimal departures from marginal cost pricing', American Economic Review 60: 265 - E3.

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<strong>DAAR</strong> – Default Aversion Assistance Request, the request sent by the lender to the MDHE to request DAA when a borrower is more than 60 days delinquent.

portfolio optimization (Gl)<br />Seeking the best trade-off between RISK and reward. A technique used to strike this balance is the mean variance optimization approach to diversification.

<strong>Repayment schedule</strong> – The legal addendum to the promissory note stating the terms of repayment and fulfilling disclosure requirements. The repayment schedule includes the total principal and interest due, the regular installment amount due, and the number of installments required to pay the loan in full. It also includes the interest rate, the due date for the first payment, and the frequency of installments.

mono-economics (A1)<br />The type of economic theory regarded as applicable to every type of economic system and country, irrespective of its stage of development and economic conditions. CLASSICAL and MARXIST ECONOMICS emphasize the theoretical implications of different stages of development.<br /><em>See also:</em> stages theory
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<strong>Consolidation</strong> – The combining of existing federal student loans into one new loan with an interest rate equal to the weighted average of the loans being consolidated. Consolidation can result in lower monthly payments but higher total debt.

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<strong>PRI</strong> – Participation Rate Index, a cohort default rate appeal option for postsecondary institutions with a low percentage of students participating in the federal loan programs.

<strong>ACE</strong> – American Council on Education.

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sovereign loan (GO)<br />A commercial loan to a sovereign state. Collateral is not offered with such loans and so there is little redress in the case of default. Much of the large foreign debts of Third World countries today are of this nature. The only way of enforcing repayment of capital and interest is by negotiation and by refusing further credit facilities.<br /><em>See also:</em> senior debt; world debt problem

books or accounts of a firm or other organization. Often this valuation is made at the time that assets are originally purchased with the consequence that changes in value caused by inflation are ignored.<br /><em>See also:</em> inflation accounting
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<strong>Unconsummated loan</strong> – Loan proceeds that the school returned to the lender prior to the borrower' s having cashed the check or the school having applied the proceeds to the student' s account.

optimum tariff (Fl, F3)<br />1 The tariff that will maximize the economic welfare of a country. Providing it is a large economy and the elasticity of supply is less than infinite, through changing the TERMS OF TRADE by imposing a ta riff it is possible to have increased revenue from trade despite its lower volume.<br /> 2 A TARIFF that increases a country's welfare by maximizing the return to its potential MONOPOLY or MONOPSONY power. This ta riff must be set at that rate which equalizes the social benefit and social cost of the marginal import. Optimum ta riffs have been recommended for less developed countries with a substantial monopoly in their export trade. If the optimum tariff is zero, then there is a strong case for FREE TRADE. Corden refers to an 'orthodox optimum tariff' as an export tax which changes the TERMS OF TRADE as the tax rest ricts exports and raises their prices.<br /> <br /><em>Reference</em><br />Corden, W.M. (1974) Trade Policy and Economic Welfare, Oxford: Clarendon Press.

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first-degree price discrimination (D4) Selling different units of output at different prices so that each price is the maximum amount of money a consumer will pay.<br /><em>See also:</em> price discrimination

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<strong>AGD</strong> – Anticipated Graduation Date, the date a student expects to graduate. May also be referred to as the Expected Graduation Date.
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<strong>Repayment period</strong> – The period during which payments of principal and interest are required. The repayment period follows any applicable in-school or grace period (for Stafford Loans) and excludes any period of authorized deferment or forbearance.
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escalator clause (M2)<br />A clause in a contract designed to revise payments due under that contract in line with changes in a specified price index. In times of considerable inflation, these clauses are popular in labour and building contracts, as well as in tax schedules and social security benefits tables.<br /><em>See also:</em> cost of living adjustment

angel (M2)<br />An investor in a stage production or new business venture. The risk and returns to this kind of investment can be very high. In London, for example, there are several hundred 'angelic' investors in the theatre.
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alleviation (02)<br />A DEVELOPMENT strategy of softening POVERTY, not eliminating it; for example, by giving every child primary education and every mother health care.
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