Evidence of confusion in intermediate accounting textbooks regarding the annual percentage rate (APR) and annual effective rate (AER) is presented. The APR and AER are briefly discussed in the context of a note payable and correct formulas for computing each is provided. Representative examples of the types of confusion that we found is presented…

Student aid--how many dollars should be provided and where the dollars will come from, what role the institution should play, and how the institution will be affected by federal cutbacks--is discussed. The Illinois Higher Education Loan Authority, a student loan program, is described. (MLW)

Student loan alternatives for states, educational institutions, and others who may be facing recent or anticipated reductions in federal aid are considered. Attention is focused on short-run possibilities that require relatively little or no modification of existing federal statutes. Considerations in developing loan alternatives include the…