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Vol. LXXXIX No. 44 Ann Arbor, Michigan-Friday, October 27, 1978 Ten'Cents

HIGHER LOAN CEILING AWAITS CARTER'S OK




Tax bill would make student loans easiei

By JUDY RAKOWSKY
The pinch of rising tuition costs may
be alleviated as early as next semester
for some University students if
President Carter signs the tax cut bill
passed by the Congress shortly before
adjournment.
A provision in the tax cut bill removes
the income ceiling requirement for ob-
taining Guaranteed Student Loans
(GSL). According to acting University
Financial Aid Director Harvey
Grotrian about 1500 to 2000 University
students who have not qualified for the
low interest loands in the past may
receive them.if the bill becomes law.

THIS AMOUNTS to a $2.7 million in-
crease in the total financial aid
available for University students.
"The most important part of this en-
tire bill is the fact that there is no
student who, because of his or her
financial situation, will be denied aid,"
Grotrian said. He added that students
may not receive the type or amount of
aid they desire, but would qualify for
some financial assistance.
The impact of the income ceiling
removal would be felt mostly by
graduate students according to
Grotrian. Even though medical studen-
ts' families May exhibit relatively high

income educational costs place a finan-
cial burden on the rich, also. Grotrian
said they should also qualify for finan-

nually are ineligible for federally in-
sured loans.
IN FEBRUARY the Financial Aids

"The most important part of this entire bill is the
fact that there is no student, who because of his or her
financial situation, will be denied aid."
-Harvey Grotrian, Financial Aid Director

nation's population have incomes above
$40,000 Grotrian said the increase in
applications is hard to predict.
He said the Financial Aid office is not
assuming that all students in the $20,000
to $40,000 income category will apply
for loans and that those above the
$40,000 mark will be less in need of aid.
Other provisions of the bill include:
" A change in the way Basic
Educational Opportunity Grants
(BEOG) are computed. The change will
allow more people with incomes above
$18,000 to qualify for the awards.
" An increase in funding for Work
Study programs from $370 million

cial aid.
Currently, students with personal or
family incomes exceeding $25,000 an-

office compiled figures when it became
evident the ceiling would be raised to
$40,000. Since only three per cent of the


Israel
~on
By The Associated Press
A defiant Israeli government,
angered by U.S. statements on the
Palestinian issue and trying to cool
political dissent at home, disclosed
plans yesterday to expand its set-
tlements on the West Bank of the Jor-
dan River. The move could raise a
major new obstacle in the Israeli-
Egyptian peace talks.
Egypt is considering calling its team
of negotiators in Washington home to
Cairo.
Secretary of State Cyrus Vance reac-
ted quickly and sharply to the unexpec-
ted Israeli decision, issuing a statement

I

to ex

a' y o~~~~~n' Photo i a'nteCre d
ISRAELI DEFENSE MINISTER Ezer Weizman and Foreign Minister Moshe Dayan answer questions at Ben Gurion airport in Washington saying the Carter ad-
in Tel Aviv. The two officials were scheduled to return to Washington for a continuation of the peace conference. The Israeli ministration was "deeply disturbed"
cabinet announced their intention of expanding settlements on the West Bank. The move may prove to be a major stumbling by the action and calling it a "very
block to peace. serious" matter.
infl ation gelines, h


Vest B
President Carter sent a personal
cable to Israeli Prime Minister
Menachem Begin to convey the U.S.
view of the settlements decision, State
Department spokesman Hodding Car-
ter said.
STATE Department officials, speak
ing privately, said they were unsure
whether Israel actually intended to put
substantial numbers of new settlers on
the West Bank, or whether the decision
was a politically symbolic move to
allay the opposition of conservative
members of Begin's Likud coalition.
These conservatives have objected to
some aspects of the draft treaty that
would end a 30-year-long state of war'
between Egypt and Israel.
Whatever the case, the U.S. officials
indicated they were dismayed by the,
timing of the Israeli Cabinet's decision.
It came as peace talks between Israel?
and Egypt were due to resume here,
and as the rest of the Arab world'
prepared to consider its response to the
Camp David accords at a meeting in
Baghdad..
"IT'S GOING to make things a lot
more difficult for us," said one official,
declining to be identified. He predicted
the decision would adversely affect the
possibility of Jordan and the West Bank.
Arabs joining the peace talks called for
by the Camp David accords.
In Cairo, meanwhile, Prime Minister
Mustafa Khalil said the Egyptian
government was considering recalling
its negotiators from the peace talks in
Possible
By MARIANNE EGRI
Bias may have been involved in the
Central Student Judiciary's (CSJ)
decision earlier this week that voided
last April's Michigan Student Assem-
bly's (MSA) campus wide election for
president and vice-president.
CSJ ruled in favor of MSA member
Irving Freeman, who filed the suit
against MSA, and denied certification

MATTE °x
High-mid 5s
Low-mid 30s
See Today for details
Eighteen Pages
to get
nationally to $500 million.
" Equalizing the treatment of assets
for both independent and dependent
students.
LAST YEAR 2,600 students received
BEOG which ranged from $200 to
$1,600. According to Grotrian the awar-
ds will be increased to an $i
maximum next year even if the bi is
vetoed.
"I would not be In the least bitsur-
prised if we had a 50 per cent increase
in the number of students who recefve
BEOG. But the original individual
awards may not change,"
See STUDENT, Page 10°
pand
ank
Washington for consultatibri
He described the possible recall as
"purely routine" and said it was noi
related to the Israeli decision on We4
Bank settlements. But it might mea*
another interruption in .th4
negotiations, which are scheduled
resume today. And even Israeli Foreig
Minister Moshe Dayan acknowledge
that expansion of the settlements " a
make it difficult" to reach a fina
agreement with Egypt on a treaty.
BEGIN'S DECISION to strengthen
West Bank enclaves could help appease
growing conservative opposition to
Israeli concessions in a peace pact.
The decision apparently emerge
from the Israeli Cabinet's threeday
debate over the Egyptian-Israeli draft
treaty. Though the meetings were
secret, officials did not deny that'Begj4
suggested "thickening" the settlemen-
ts to win votes from reluctant Cabinet
ministers for the draft agreement and
his proposed amendments to it.
Government officials said Israeli
leaders were furious at statements
made by U.S. Assistant Secretary of
State Harold Saunders on a recent
Mideast swing to raise support for the
Camp David framework agreements
from moderate Arab states and from
Palestinians in the West Bank.
SAUNDERS reportedly suggested in
a closed meeting with Palestinian
leaders that Israel might eventually
See ISRAEL, Page 8

tas In
tston
of the election. However, MSA-
President Eric Arnson and MSA Vice,
President Nancy Smith are going to ap,
peal the case.
"I HAVE suspicions the decision
was. not based on the merits of the case
itself and that's why we're appealing1'
said Arnson.
CSJ has not yet handed down its
opinions on the case and Arnson,
stressed the-importance of reading the
full text of the decision rather than a
"letter line stating the ruling."
"There was some politicizing in .the
case, but I'm not sure to what degree,"
said Arnson. "We have to see exactly
what they (CSJ) based their decision
on."
According to ex-Vice Chief Justi ceof
CSJ Ric Shahin, there was bias in-
volved in the decision because it coin-
cided with MSA's appointment of the
new justices.
Shahin said both the chief justice.apd
vice chief justice of CSJ applied for
reappointment and neither one gotj
"One of us had personal animosities
See CSJ, Page 10
Friday
" Common Cause, a consumer
lobby group, is suing President
Carter over a recent appointment
to the Federal Election Com-
.-:i.en Ca:- cra nvoera

By JOHN SINKEVICS
University officials expressed uncer-
tainty yesterday concerning the semi-
voluntary wage and price guidelines
which President Carter announced in a
nationally-televised message on
Tuesday. Administrators were
especially puzzled about the federal ac-
tions which might be taken if the
University does not comply with the
standards instituted.
"We have received no official word
from ,Washington concerning the
details of Carter's guidelines," said
James Brinkerhoff, Vice-President and
Chief Financial Officer of the Univer-
sity. "But I expect that the University
will probably follow any federal stan-
dards which might be demanded."
ORIGINAL speculation by University
'officials indicated that tuition costs
would be considered prices, and
therefore, subject to the 5.75 per cent
limit specified by the guidelines..
However, two members of the White,
House .inflation guidelines committee
said that the limit applied to univer-
sities would be one-half of one per cent
below the base increase for the 1976-77
Studnts

fiscal year.
The increase in tuition that year was
9.5 per cent and consequently, a
calculated tuition increase of nine per
cent would be allowed the University by
the Carter administration. All Univer-
sity fees - tuition, health service
charges, registration fees - will be in-
cluded under the guidelines and the
total average increase will be the figure
which is enforced. 1
Increases in tuition have averaged
over nine per cent for the last three
years, (last year's increase was a
whopping 9.5 per cent), and University
officials would not comment on what
federal reactions would be if the
University were to ignore the proposed
limits.

"I'm not sure whether they would cut
off federal research contracts or sdome
other federal funding," she stated, "but
these actions were discussed at the
meeting I attended in Washington last
week."
The conference Rubin attended
brought representatives of student
government to Washington from
around the country to discuss the
problems of higher education. At that
time she said she was told that tuition
rates would indeed be considered prices
in Carter's proposed guidelines.
Last year, the University received,
more than $83 million in funding from
the federal government; $61 million
being allocated for research with the
rest going to student aid and various
training programs..

federal funding," he remarked. "After
all, inflation hurts the University as
much as anyone else and we would be
supportive of any standards which
might keep inflationary levels down."
Vice-President-for Academic Affairs
Harold Shapiro also said that the effect
of the guidelines would be difficult to
judge for quite some time. "Its impact
depends not only on what the federal
government says, but also on what the
state government does, too," he stated.
"And we really -don't begin figuring the
actual budget until January."
OFFICIALS ALSO said University
wage increases depended upon state
appropriations and therefore the im-
pact of the standards on wages could
not be ascertained at the present time.
Last Friday, University Regents ap-
proved an increase in faculty compen-
sation of 10.1 per cent and the Commit-
tee for the Economic Status of the
Faculty (CESF) said they would main-
tain their support for this level of com-
pensation.
"Faculty wages have trailed behind
the wages of other groups across the
See EFFECTS, Page 5

According to Carter's standards,
suspension or reduction of federal BRINKERHOFF SAID that because
research funding are seen as possible of the huge amount of money which
punishments for failure to follow the might be affected by federal action, the
limits. Kate Rubin, MSA's com- University will very likely comply with
munications coordinator, speculated the pricing guidelines.
that such retaliatory actions might oc- "I don't think we'd embark on a cour-
cur. se that would jeopardize this valuable

rally to

oppose.
Prop D
By ELISA ISAACSON
Approximately 250 enthusiastic
students, waving signs and shouting
slogans, rallied yesterday on the steps
of the state Capitol to oppose the ballot
proposal that would raise the drinking
age to 21.
The demonstration, co-sponsored by
the Michigan Committee for the Age of
R1hsnnnsihilitv (MICAR) and Studentsi