Page 2 -Thursday, September 10, 1981-The Michigan Daily

BUDGET REDUCTION THREA TENS FUNDS
Financial aid squeezed

By MARK GINDIN
Many students find the most
frustrating and serious considerations
of a vgollege career revolve around
whether they can pay for one. And
many of those who cannot handle the
expenses alone seek help from the
University's Office of Financial Aid.
The time between applying for and
receiving - or not receiving - the ac-
tual award can be an extremely unner-
ving period for students.
And the OFA doesn't have a much
easier time of it. As of mid-July, the

payback period which were advocated
earlier.
Both the Senate and House bills
recommend a needs test for future ap-
plicants effective October 1, 1981. The
Senate, however, wants to apply the
test only to students with family in-
comes above $25,000, while the House
bill would require the test for all ap-
plicants.
BECAUSE OF the current backlog of
applications and the larger backlog an-
ticipated in future months, University
financial aid officials say applications

The federal government has slashed $100
million from the $286 million budget of the
National Direct Student Loan program.

amount of money available to various
programs was still unclear because of
cutbacks in federal spending advocated
by the Reagan administration. The
delay in confirmed program budgets
forces a delay in awards and award
notifications sent out by the OFA.
GUARANTEED Student 'Loans,
Pell/Basic Educational Opportunity
Grants, and National Direct Student
Loans are the major programs slated
for revision. The changes may even be
retroactive, prior to when the ap-
plication was filed.
The Guaranteed Student Loan is
perhaps the most complicated and con-
troversial of the programs slated for
reform. The major change would be the
introduction of a "needs test," rather
than a change in the interest rate or

submitted after August 1 will probably
be subject to the new criteria imposed
by Congress.
The changes in Pell Grants, formerly
called BEOGs, have already been set
by Congress, according to Jim Zim-
merman, Associate Director of the Of-
fice of Financial Aid. The maximum
award has been reduced, and there has
been a change in the calculation of the
eligibility index used to ascertain a
student's eligibility for a grant, he said.
During the 1980-81 school year, the
maximum Pell Grant was $1750; the
maximum during the coming year will
be $1670. Previously, the index of a
student's eligibility for a Pell Grant was
calculated using an adjustment for in-
flated salaries.
The formula "doesn't allow an in-
flation factor for calculations for the 81-

82 school year," said Zimmerman. This
means that a family will be categorized
as making more money even when their
income increases are only a compen-
sation for inflation.
THE FEDERAL government has
slashed $100 million from the $286
million budget of the National Direct
Student Loan program in a cost-cutting
move. This 35 percent reduction in
available money will necessitate a
reduction in the amount. awarded a
student by perhaps hundreds of dollars.
Because of the delay in the actual
delivery of funds to the University for
disbursement, it is impossible to tell
how much will be cut from a student's
NDSL, said Zimmerman. "It will
probably be a flat cut off the top of all
the loans," he said, adding that the cut
may be as high as $300.
Allotments will probably be unaffec-
ted until the Winter term, Zimmerman
said. "We hope it doesn't affect people's
plans," he said.
FEDERAL PROGRAMS that will
remain largelyruntouched include the
Work-Study program and the Sup-
plemental Education Opportunity
Grants. "They will be funded at com-
parable levels to this year," Zimmer-
man said.
The State Competitive Scholarship
Program is also experiencing a reduc-
tion, however, because of state ap-
propriation drops, according to Zim-
merman. Using one-third federal funds,
the maximum amount awarded this
year will be $940, as opposed to $1200
'two years ago.
Becausea ofthe uncertainty involved
in the distribution of awards, the OFA is
urging students to try to understand the
problem. The Office has said students
will be notified as soon as the office
knows anything, and officials explain
that not much information can be ob-
tained from the OFA n while the ap-
plications are being processed -
processing is taking much more time
this year than it normally does.
"This year is as bad as I have seen
it," Zimmerman said. The OFA is
receiving GSL applications at the rate
of 700-900 each week. Nine thousand
were received by July 1, and a large
backlog of up to eight weeks is expected
at the office and at the state agency
which must handle them.
Because of the delay in award
notification inherent in the system,
Zimmerman said he urges students to
be prepared to meet start-up costs at
school for the first few weeks. "We are
ahead of last year," he said, "but that
isn't saying much."

Daily Photo by PAUL ENGSTROM
Financial Aid applications multiply as the federal money pile shrinks.
Scholarship assistance:
languishing bonarza.

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COLLEGE WORK-STUDY
'JOB FRIR
All students with 1981-82 Work-Study awards are eligible to at-
tend. Come and talk with Work-Study employers about job
opportunities.
BRING YOUR AWARD NOTICEI

Tuesday, 9/15/81
9:00-4:00

Pendleton Room
Michigan Union

By MARK GINDIN
There is scholarship money out there,
and lots of it, floating {around unused
because nobody knows about it, accord-
ing to a nationwide computerized
scholarship locator service.
"Last year alone, over $135 million of
student financial aid went unused,"
said Ed Rosenwasser, head of Student
College Aid, located in Houston.
"Students have 250,000 sources of non-
governmental sources of financial aid
available but most students don't know
these sources exist and don't realize
they qualify," he said.
STUDENT COLLEGE Aid, and
similar organizations use a computer to
match a student with the appropriate
sources, Rosenwasser said. "The
student merely fills out a data form
requesting non-financial information
about the family and self," he said.
"It's like computer dating," said
Mary Ann Maxin, executive director of
Scholarship Search in New York. The
student fills out a 39-question data form
listing such things as career goals, in-
tended major, parental background,
and interests, she said.
"The data is run through the com-
puter, which generates a print-out
listing the sources of aid appropriate
for that student," Rosenwasser ex-
plained.
"THE AVERAGE student gets 10 to
20 listings of potential scholarships,"
said Maxin of Scholarship Search. "It
has never happened that we have not
matched a student with something,"
she said.
The awards are not necessarily based
on need, which is different from most
scholarships, said Maxin. "The normal
requirements of either having a cup in
your hand or being a genius do not ap-
ply here," she said.
Because of the recent federal cut-
backs in governmental aid, students

will have to turn to the private sector to
finance their education, Maxin said.
Scholarship Search provides a service
to many students who may otherwise
have to forego an education, she said.
BOTH SERVICES offer a money-
back guarantee. Scholarship Search
will refund the $57 fee of it cannot mat-
ch at least three private potential
donors with the applicant, said Maxin.
Rosenwasser said his organization
will refund the $45 service fee if the.
computer does not provide at least five
potential sources of aid. He said he has
a 99 percent success rate with fresh-
men and An 89 percent success rate
with juniors.
The match-up does not, however,
guarantee the student will get the
funds, Rosenwasser said. "Of those
who apply, about 40 to 50 percent get
awards," he said.
STUDENT COLLEGE Aid ,offered
several examples of awards recently
made by various little-known organiza-
tions. For instance, the Poynter Fund in
Florida will give a scholarship to
students majoring in communications;
a scholarship of from $500 to $1,500 is of-
fered to 50-60 qualified students each
year by the Society of Exploratory
Geophysicists Foundation; and several
southern colleges offer scholarships to
students descended from officers of the
Confederacy.
"One young lady got a source in
Geneva who was offering a scholarship
to persons of Jewish faith and Austrian
heritage who was majoring in
genetics," said Maxin. "She ended up
with $10,000 a year for four years of
school," she added.
ALL THE information furnished by
the computer is public; but Rosen-
wasser said most students do not know
it exists.
"There is $500 million worth of
scholarships available, but about a

fourth of it goes unused by the people
eligible for it, Rosenwasser said. "It
would take a student 4,000 hours to'go
through 250,000 listings."
Many students receive 25 listings
from their applications, but the
average is 12. The average value of the
listed scholarships is $12,000 accordin
to Rosenwasser.
Harvey Grotrian, Director of Finan-
cial Aid at the University, advised
caution in approaching this solution to
college financing.
"I WOULD advise the student to find
out more about the organization before
writing the check," Grotrian said. "I
don't know of anyone who has used the
service, so I don't know much about it."
The University's Office of Financial
Aid does not give information to the
computer organizations, because thg
student can do much the same thing 6
the University, using University
resources, Grotrian'said.
"For some, the $50 (fee) is wasted,
but for others it may help," Grotrian
said, adding that a paperback book
available in his office can be useddo
locate funds at no charge.
"IF YOU NEED funds and the state
and federal help is not enough, you
must either work or search for help
Since we can search faster and easier, I
think it is worth $45," said Rosenwasser
of Student College Aid.
Scholarship Search, at 1775 Broad-
way, in New York, was founded in 172,
Maxin said.
"Thousands of dollars in research
and constant communication with the
donors are needed to keep the computer
files updated," she said.
Student College Aid, at 3641 Deal
Street in Houston, has provided service
for about a year, Rosenwasser said
and several thousand people have ap-
plied. "I like to think I am better" even
though smaller, he said.

_. , J

'r-

University boosts tuition 18%

(Continued from Page 1)
However, a mid-year increase is a
possibility for this University's future if
badly-needed state appropriations do
not materialize, officials said.
Legislation recommending a 12.2

percent increase in state funds to the
University for the 1981-82 academic
year was approved by the state Senate
and House and signed by Gov. William
Milliken last April.
HOWEVER, Bob Sauve, assistant to

OFFICE OF FINANCIAL AID
Grants-BEOG/Pell, SEOG, UG, MOG
Loans-NDSL, GSL, Health Professions
Work-Study and Student Employment
General-763-6600 GSL-763-4127
Employment-763-4128
Save yourself a long wait in line-

Frye, said that "nobody believes (tie
promised 12 percent) is there, and the
chances are 99 to 1" the governor v644
issue an executive order reducing the
appropriation.
Frye said he and the rest of the ad-
ministration favor raising tuition
rather than cutting back academic
programs. Proper reviews to select
weak departments for reduction takesa
lot of time, Frye said. "We can't reduce
too fast," he said.
SHOULD STATE aid continue to
dwindle, Shapiro said, "we'll have to
start reducing programming rather
rapidly." If disaster does occur, "we
may have to go back to hiring freezes
and across-the-board cuts," Shapiro
said with obvious distaste.
Daily staff writer Mark Gindin

Office & Phone Hours
beginning 9/8/81
8:15-12:15
1:30-4:00

READ YOUR MA TERIAL FIRST
No appointments scheduled for 9/8/81 through
9/I11/81. Thereafter, call on Thursday
mornings for appointments to be scheduled for
the followineweek.


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