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market distortion (DO)<br />A market allocation that fails to reach a social optimum. Sometimes this occurs because of government intervention.
<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>Automated Transfer of Money (ATOM)</strong> – The MDHE' s free disbursing service.
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