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March 06, 1986 - Image 5

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Publication:
The Michigan Daily, 1986-03-06

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Page 5 - The Michigan Daily - Thursday, March 6, 1986

Financial aid fraud is
rare at 'U,' official says

4

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By MARC CARREL
with wire reports
A University official said yesterday
that an alleged financial aid fraud
case at a Grand Rapids area college
probably could not happen here.
Harvey Grotrian, director of the Of-
fice of Financial Aid, said student aid
fraud is "very rare" at the University
because of the large number of
safeguards built into the system.
CEDRIC Richardson of White
Cloud, Mich. entered a no contest plea
yesterday in federal court to charges
that he defrauded the government of
nearly $5,400 in student aid payments.
Richardson, 24, was indicted last
month by a federal grand jury in
Grand Rapids on charges that he con-
cealed and falsified information on

students benefit applications to the
Social Security Administration bet-
ween 1980and 1982.
Richardson claimed he was a full-
time student at Grand Valley State
College when he was not. The indic-
tment also alleged that a college of-
ficial's name was forged on one of the
forms.
GROTRIAN said that since 1976,
when he began working for the
University, there have not been any
reported cases of financial aid fraud.
"This is not to say, however, that
documents could not be falsified or
that fraud could not be perpetrated,"
Grotrian said. "That kind of thing can
happen in any area of society... but it
is a very rare instance in our
profession largely because there are

so many checks."
Those "checks" include verifying
the information on financial aid forms
by checking it against information on
other forms and withholding aid if
"something doesn't seem right,"
Grotrian said.
Lynn Borset, assistant director of
financial aid, said the alleged fraud
case would be unlikely to occur at the
University because each aid request
is carefully scrutinized. "We look at
every single financial aid application
in a fair amount of detail," she said.
Borset added that beginning next
year, the financial aid office will take
the additional precaution of requiring
applicants to submit their income tax
forms with their student aid ap-
plications.

4

:..

Associated Press

Two sides
President Reagan holds up a t-shirt commemorating his
course, there are two sides to every comment (right).

"Sons of bitches" comment last Friday (left). Of

'U' student speaks to House committee

(Continued from Page 1) would cut student financial aid by
mittee on Legislative Relations and billion. Harvey Grotorian, th
Financial Aid, volunteered to testify University director of financial ai
before the subcommittee. Steve said such a cut would result in a $4
Heyman, chairman of the MSA com- percent reduction in financial aid.
mittee, gave Studier's name to the UNDER THE proposed budge
state relations office, which submit- funds for guaranteed student loa
ted his name to the House subcommit- would be reduced from $3.3 billion t
tee. Studier received an invitation to $2.3 billion, National Direct Studer
testify before the subcommittee from Loans would be cut from $190 millio
chairman William Ford (D-Taylor). to $137.6 million, and Pell Grant fund
"Scott has been doing a lot of would drop from $3.5 billion to
research on Gramm-Rudman and the billion.
budget cuts and was very interested- If the proposals are passed, th
in testifying," Heyman said. University would receive $823,000 i
STUDIER said subcommittee fiscal year 1987 for National Dire
members were concerned about Student Loans, down from the $1,
students who are in debt. "The mem- million it received for fiscal year 198
bers were concerned that some and $4.5 billion for Pell Grants, dow
students were getting too far behind in from $5.4 million this year, Grotria
repaying their loans," he said, adding said.
that the committee wanted to hear Grotrian said the chances are sli
from students. that Congress will approve the cuts
Members also asked questions full. "In 1982 the administrati
about the effects of the proposed cuts proposed a 50 percent reduction
on students who receive aid, Studier student aid, and received only
said. reduction of 6 percent. I feel th
The Reagan administration's student aid will remain at nearly th
proposed budget for fiscal year 1987 same level that it's at now." He sa
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he does not know how many students
will be affected if the proposals are
passed.
GROTRIAN predicts that no finan-
cial aid programs will be phased out,
but added that there may be "some
tightening" in some programs.
"It will be more difficult for some
people to acquire Guaranteed Student
Loans since everyone will be required
to undergo a financial need analysis.
The administration's proposals
require families with an income of
less than $30,000 to undergo financial
need analysis," Grotrian said.

S. African m
South Africa - About 30,000 mour-
ners yesterday marched behind
youths carrying the flags of the Soviet
Union and the outlawed African
National Congress to bury 17 blacks
killed by police during riots last mon-
th.
The crowd packed a soccer stadium
in Alexandra, a squalid black town-
ship wedged among the richest white
suburbs of Johannesburg. In the
crowd were black activist Winnie
Mandela and diplomats from seven
Western nations, including the United
States.
Army helicopters hovered overhead
and police armed with shotguns.
rifles, pistols, and whips watched from
hillsides and used armored trucks to
surround the ghetto. But security for-
ces took no action against the crowd.
With most other forms of protest

banned, the crowd - which some
estimates put at 50,000 or more -
transformed the service into a rally
against apartheid, which reserves
privilege for South Africa's 5 million
whites and denies rights to its 24
million blacks.
Black-power chants and songs filled
the air between defiant speeches in
which the riot victims were praised as
the latest martyrs of the fight against
white rule.
Black activist Winnie Mandela, wife
of jailed black nationalist Nelson

ourners protest apartheid

Mandela, wrote a message expressing
"the deepest sympathy of the African
National Congress," an outlawed
group dedicated to the overthrow of
the white-minority government.
"We want everybody to know that
even this is not too high a price to pay
for freedom," she said in the
message, which was read to the
crowd.
Police reported earlier yesterday
that three more blacks were slain in
overnight violence in black townships,
including a woman killed by a
grenade tossed into her home.

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