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<strong>Variable rate</strong> – An interest rate that varies over time and generally has a specified maximum (cap). Prior to July 1, 2006, interest rates on FFEL Program loans were variable with an 8.25% cap. (Beginning July 1, 2006, interest rates are now fixed rates, with the maximum established at 6.8% for Stafford Loans and 8.5% for FFEL Program PLUS Loans.)
<strong>Borrower</strong> – A person who obtains a loan and must repay it. This term is NOT synonymous with “student.”
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<strong>OAKFAP</strong> – The Ozark area group of financial aid professionals, normally meeting in Springfield.
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required reserve ratio (E5)<br />Ratio of reserve assets to the total deposits of a bank or other regulated financial institution set by a central bank. For UK CLEARING BANKS the ratio was set at 12Yz per cent in the period 1971-81, after which the proportion of reserves they hold is at their own discretion.
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