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<strong>Aggregate loan limit</strong> – The borrower' s maximum allowable unpaid principal amount throughout the student' s academic career. Capitalized interest or any collection costs that may have been added to the principal balance are not included in the borrower' s aggregate loan limit.
<strong>NSLDS</strong> – National Student Loan Data System, a database comprised of information from guarantors, schools, lenders, and the U.S. Department of Education that contains data on Title IV student financial aid received by students. Title IV aid participants, such as schools, lenders, and guarantors, are required to provide data to the NSLDS.
average quality: the famous example used by AKERLOF to illustrate ASYMMETRIC INFORMATION. As sellers have more information than buyers, quality uncertainty about the cars will have the effect, in the manner of GRESHAM'S LAW, that good cars leave the market so that only lemons are traded. This principle is applicable to insurance, the employment of minorities, the costs of dishonesty and credit markets in underdeveloped countries. Guarantees, brand names and the licensing of professionals can be used to protect against such uncertainty <br /><em>Reference</em><br />Akerlof, G. (1970) 'The market for lemons: quality uncertainty and the market mechanism', Quarterly Journal of Economics 84: 488-500.
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