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<strong>Award Year (AY)</strong> – The standard federal definition of an award year is July 1 through June 30. (Note: the acronym “AY” may also refer to the Academic Year or Aid Year.)

<strong>Direct lending, or direct loan</strong> – The William D. Ford Direct Loan Program, a federal student loan program through which the U.S. Department of Education loans money directly to students and parents rather than having the loans funded by private lenders, as in the case of the FFEL Program. Direct lending is codified in federal regulations within 34 CFR 685.

post-contractual optimism (DO) see moral hazard
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lio borrowing on the US market by 1 per cent. This fiscal measure was designed to reduce the capital outflow from the USA.<br /> interest rate (E4) see rate of interest interest rate agreement (E4, G2)<br />An agreement for one party to pay an initial premium to another party in return for receiving at specified time intervals the difference between a reference market interest rate and a predetermined level of interest. If the difference is specified to be greater, the agreement is an interest rate cap; if smaller, an interest rate floor. These agreements are used in asset-liability management to reduce the risk arising from interest rate movements.

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