Page 6-Thursday, July 12, 1979-The Michigan Daily
Defaults on guaranteed student loans down

WASHINGTON (UPI) - The gover- teed Student Loan program was able to
nment has cleaned up its program of collect $30.5 million in defaulted loans
assistance to college students known as during the first nine months of this
the Guaranteed Student Loan plan, fiscal year - more than the two
Health, Education, and Welfare previous years combined - and should
Secretary Joseph Califano said yester- eliminate the backlog of defaulted loans
day. But a second plan, funded by the within the next 18 months.
government but administered by in- CALIFANO SAID the number of
dividual schools, continues to lag defaults in the campus-run National
behind in attempts to lower default Direct Student Loan Program rose
rates, Califano added. from 713,000 in June 1977 to 841,000 by a
Califano also said the government is year ago, the latest time period for
saving more money than ever by cut- which there are figures.
ting down on cheating and mistakes in That default rate, he said, means $700
administrating the child welfare million in loans is still outstanding.
program. Califano said changes in the program
He said the government-run Guaran- will "encourage vigorous collection ef-

forts by institutions." collecting outstanding loans.
SAME 1,260 schools will be getting In the family welfare plan known a
less money from the federal loan Aid to Families with Dependen
program in the upcoming school year Children, (AFDC), Califano said th
because of their default rates, he said, error rate involving overpayments o
and schools failing to meet a new stan- payments to ineligible people has drof
dard for addressing the programs in the ped to 7.1 per cent - an all-time low
future will get no money at all through When Califano took office, the rate wa
the NDSL program. 8.7 per cent, he said.
The new standards call for a school to He managed to whittle the rate dow
reduce its default rate by 10 per cent to 8.1 per cent a year ago. "This on
or demonstrate a 25 per cent im- point reduction is equivalent to annua
provement in its rate, or document that savings of more than $100 million in thi
it has been using "due diligence" in $11 billion program," Califano said.
Dial-a-Ride cuts protested
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day service, and limit customers to the
handicapped and elderly.
Patricia Minott, president of the
Transportation Employees Union,
spoke out against the cutbacks.
Minott said the union "strongly op-
poses any move by AATA to reduce
public transportation services in Ann
Arbor," because many of AATA's
passengers "depend on AATA services
for all their transportation needs, and
to refuse them service would be to
prevent the purpose of our public tran-
sportation system."
LENA RICKS, member of the
AATA's Handicapped Advisory Com-
mittee, said the committee has "been
misrepresented to the state as being in-
put" to the board. The committee was
formed last month under a state law
that requires input from the handicap-

ped and elderly to local transportation
boards.
Though the committee has been
asked to review and approve AATA's
fall service plan, said Ricks, committee
members did not receive copies of the
plan, to be approved July 16, until last
Saturday.
The fall service plan and a possible
fare increase will be discussed at the
July 25 AATA meeting, and a final vote
is expected Aug. 1.
German air-ace Baron Manfred von
Richthofen, known as the Red Baron,
was shot down and killed over the
Western Front in 1918 by, according to
some reports, Capt. Roy Brown of
Canada. Brown was a flight leader in
the 209th Squadron of the Royal Flying
Corps.

State panel considers cuts
( Continued from Pag3J)
from the legislature, and "puts it Fincher said. He said the University
together with an 8.5 to nine per cent requested $1 million for its health
(tuition increase), we can get by." science program, adding he believes
Other steps the University could take it's "possible" the University will
in the face of reduced state aid, Fincher receive it. "They (health science
said, would be to cut back on the in- programs) have been a priority of
creases in faculty salaries and compen- legislators. Something is likely to be
sation for staff. given."
THE STATE can't dictate the amount Smith, who was in Lansing during
of money staffs receive, because "some yesterday's meeting, said, "The joint
institutions are unionized," Fincher conference committee met and in-
said. But, he added that the state plans dicated they'd get together with the
on a seven per cent increase across the governor."
board, based on recommended salary Smith expressed surprise over the
increases for state employees. target figure set by the legislature.
The major problem facing the "Even (the governor's) January figure
University if cutbacks are severe would was higher," he said. "I don't under-
be funding health science programs, stand how the target figure (fell)."
GEO decision delayed
(Continued from Page 3)
by the Michigan Employment Relations Commission (MERC) in May 1978.
"THERE IS virtually no question that Sperka's decision will be in our favor,"
Scott said. "Sperka already ruled on this (case)." He said MERC later asked for
new evidence, and sent the case back to Sperka. After Sperka makes another
decision, the case will be sent to the MERC board. Scott said he believes the full
MERC board also will rule in GEO's favor.
GEO attorney Mark Couzens said he now has transcripts, which are necessary
in preparation of court briefs. "The problem has just about resolved itself,"
Couzens said, adding that he expects to complete his briefs around September 1.
However, Couzens also added that "there is no way to accurately predict when the
decision will come down."
Ann Arbor CiviC Theatre
Accepting resumes f.r directors, musical directors, and
designers for the 1979-80 season, celebrating our 50th
year.
Please send resumes to AACT Directors,
PO Box 1993, Ann Arbor, MI 48106
Sept 26-29: DEVIL'S DISCIPLE
Dec 12-16: KISS ME KATE
Feb 13-16: THE CURIOUS SAVAGE
Apr 9-12: THE CRUCIBLE
May 14-17: LADY LAMBERT (original)
June 18-22: GUYS AND DOLLS