Ninety-four Years of EJiditorial Freedom C I be LIE an Iai Perfect Another sunny day with a high in the upper 80s. Vol. XCIV - No. 2 Ann Arbor, Michigan - Friday, September 9, 1983 Free Issue Twenty-four Pages Defaults on -. W cost state feder By JACKIE YOUNG The State of Michigan will lose federal funds this year as the number of students defaulting on their loans is ex- pected to increase significantly. However, the state's default rate still remains below that of the national average. Last year the state was able to keep its student loan default rate below 5 percent at 4.8 percent and collected 100 percent of federal funds reimbursing them for the lost money. But because the state is expected to exceed a 5 per- cent rate by the end of this month, federal regulations stipulate they must lose 10 percent of their reimbursement dollars, said Ronald Jarsa, director of the Michigan Higher Education Assist- ance Authority, which keeps track of loan defaults. THIS IS the first time since the start of the program in 1962 that the state has gone above the 5 percent level. The state must cover the loss of federal fun- ds through money out of its own pocket. If defaults reach 9 percent, federal reimbursement drops to 80 percent, Jursa said. Jursa said the state's financial situation over the past 18 months is making jobs scarce for students and is the primary reason for the recent in- crease in the default rate statewide. NATIONWIDE the default rate stood at 11 percent last year. Because the University no longer keeps track of the number of students defaulting on their loans (it is now done by a nationwide organization) it doesn't have a record of their default rate under the state Guaranteed Student Loan Program. However, Jursa said the larger schools have "fairly good track records around the 4 to 5 percent level. As a group the higher default rates come frm the community colleges and vocational schools with non-degree aid programs." This is usually because these institutions serve a lower income clientele who are not as talented academically and have higher drop out rates, said Jursa. A loan must be paid off beginning six months after a student completes his education. Four months after the student receives notification of an overdue payment the loan is considered in default. If the lender (savings and loan associations, private banks, or credit unions) cannot collect the loan from the student, the state becomes responsible for the lost dollars. "WHEN STUDENTS are strapped financially and have difficulty just fin- ding a job," Jursa said, "loans aren't See STATE, Page 19 Smith out college eaucuauun, ana ev'en Lne Ulag S vI lvam, was t. --a---a 111 j -oAr, Daily Photo by DEBORAH LEWIS religion regular, Mike Caulk. him to join in the dance. This Diag die-in victim was one of thrity who "died" in a protest against A transient who says he spends See DIAG, Page 19 University investment in defense industries. See story, Page 20 Union clears way for final tally in secretaries'vote By NEIL CHASE After a year of collecting signatures and. spending thousands of dollars in a major cam- paign effort, a national labor union hopes to earn Wednesday whether the University's 3100 lerical workers will be joining its ranks. The employees voted in late May on whether a new local of the American Federation of State, County, and Municipal Employees should be formed to represent them. The preliminary results show the union losing by just one vote, 1,217 to 1,216, but challenged ballots remain to be counted. THOSE BALLOTS are still sealed in special envelopes because the voters' eligibility has been questioned. Most were challenged by the Union because they said the employees' duties made them ineligible. "We just think some of the folks are misclassified," said Jim Jarmer, AFSCME's state director. He said some employees listed as clericals by the University actually perform duties which are supervisory or have professional responsibilities. Such employees are not allowed to be in rank-and-file unions. The union also filed an 18-part complaint about the way the Michigan Employment Relations Commission handled the three-day election. They wanted a judge to declare the election invalid and order a new one, Jarmer said, but the complaint was withdrawn in late August when the judge announced it could take a year or more to complete the hearing process and render a decision. JARMER SAID the union dropped the com- plaint because it would be in the "best interest" of University employees to resolve the election quickly. A quick resolution also would mean the union could file for a new election sooner. The union must wait one year after this election is resolved before it can file for another. If the union had maintained its appeal and lost, a new election possibly wouldn't be allowed until 1985. While the issue of the election process has been dropped, the question remains as to the eligibility of the 139 voters whose ballots were challenged. Union, University, and state of- ficials will meet Wednesday in Detroit to discuss these ballots, and Jarmer said the union plans to work out the remaining differen- ces and complete the ballot counting at that meeting. "OUR INTENT right now is to go in and open up the ballots," Jarmer said. "Our intention is not to continue the adjudication." University attorney William Lemmer said he was pleased with the prospect of completing the election. "This is where we were to start with," he said, adding that "people have a right to charge or make objections or challenge voters, and AFSCME did." Among the union's charges were the presen- ce of supervisory personnel in the polling area and the fact that challenged voters were told who objected to their being eligible to vote. They also highlighted problems with mail-in votes and biased conversations within earshot of the voters. MERC elections director Juilie Robinson said the union complaint was a collection of relatively minor items. "You try to find almost anything so you can come up with your extra votes," she said. WEDNESDAY'S meeting should reveal whether the union has the extra votes it needs,.. Most of the challenged ballots are believed to belong to senior employees who already have attained high salaries and good benefits and would probably not support the formation of a union local. "I'm pretty sure they'll lose," said Marie Schatz, a secretary in the geological sciences office. "I don't think those people would have any reason to have a union." State and University officials agreed that the unopened votes would probably go against the union, but Jarmer said history is in the union's favor. "Statistics will show that challenged ballots reflect the rest of the balloting," he said. ToDAY Brookewatch HAT WOULD YOU do if the most beautiful 18- year-old in the world were in your orientation ,group? Probably plotz. That's how the first- year students at Princeton University must feel as actress-model, model-actress Brooke Shields starts her first week. On Wednesday, Brookie took time out from orientation to do some shopping, where local shopkeepers say she's just like any other college student. "I found her very natural and polite, just like any other human being," said a clerk at Hindson's stationery store, where the star bought a memo board and some legal pads. The big question is: Do the lions outside Princeton's museum roart when she walks by?f Women living in the Law Quad have found that during most hours of the day, they can't get cold water. That means scalding showers, rinsing out toothpaste with warm water, and steaming toilets. The lawyers-to-be say the situation is worst at dawn: "Once the showers are being used, we do get some cold water, but if you're an early riser, you have to wait for everyone to wake up," says one third-year student. One woman says she forces out cold water by run- ning the showers for five minutes "and flushing the toilets 20 times." For now, the women are learning to adapt to thef sensation of "steamy seats" because nothing is being done to remedy the situation "no matter how much we bitch," groans a third-year student. Education notes curb the large number of notes being written by seventh- and eighth-grade students, including some containing vulgar language, sexual overtones, and false accusations about classmates. The hearing panel said the ban went too far by applying to all notes, regardless of their content or when they were passed. It ruled that Jori Ekis, a seventh- grader last spring, should not have been suspended for receiving a note in the school lunchroom last May. After other students (read: finks) informed school officials that Jori received a note from little Sandi Strunk, she and Sandi received one-day suspensions and were to lose 2 percent of their quarterly grade in each class missed. Jori's mom and dad challenged the action, but school officials agreed only to drop the grade penalty, prompting the parents to appeal to the state. Q Tr, 1r that we are going to use this little dog to drive a final rusty nail in the heart of the other person?" Orange County Superior Court Judge John Wooley asked Rex and Judi Wheatland before issuing his ruling Wednesday. Rex Wheatland had offered his wife $20,000 to buy out her "share" in Runaway, a 2-year-old cockapoo that is fond of lobster and salad with Roquefort dressing. But Judi Wheatland spurned the offer, even though she had only $15 in her bank account. "It's not negotiable," she said. Wooley ruled that the dog will be shared on a monthly basis; neither owner will be allowed to take the dog out of state without written permission from the other. Other options to the set- tlement included putting the dog to sleep, having it sold, or cutting it in half and giving one part to each. On the inside .. . The Opinion Page looks at civil rights and the Univer- I I E