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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.)
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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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<strong>Consummated loan</strong> – A loan for which disbursement funds have been delivered to the borrower. For example, a loan is considered consummated when the borrower cashes a paper check from the lender or when the school applies the proceeds of an ACH transfer to the student' s account.
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