The Michigan Daily - Thursday, September 4, 1986- Page 5A, Tuition up, financial aid down; students are in debt Daily Photo by CHRIS TWIGG University alumnus Jack Atkinson relaxes as he browses through books at the Barnes and Nobles bookstore in the Michigan Union. Bookstores By EUGENE PAK Imagine you are working late on a botany lab in the Natural Science building's humid greenhouse. In the middle of the lab, you realize you have just used the final sheet of paper in your notebook, and your only pen has been leaking ink onto your favorite Michigan sweatshirt. You try rubbing the ink out but this only spreads the stain. Frustrated, you throw your botany textbook across the room, hit- ting a giant Venus flytrap which quickly devours your book. The lab is due tomorrow morning - what do you do?. You can either explain this unlikely scenario to your RA or you can run to the nearest student bookstore to replace your notebook, pen, sweat- shirt and digested textbook. But Ulrich's, University Cellar, and Bar- nes and Noble (the Michigan Union Bookstore) are equally close. Where do you go? Would it make any dif- ference where you went? The an- swer.. . it depends. Most students interviewed picked the University Cellar as the overall best bookstore, though ratings were largely influenced by geography. Said one student, "I just go to Ulrich's, it's closest to where I live." Picking books Many students said University Cellar offered the cheapest prices on books and other goods, though they admitted the difference was minimal. LSA junior Joon Chung said "U Cellar is cheaper by a little margin, which I consider too little to be significant." Student opinion varies on the issue of course book selection. Some students preferred choosing their own books, which they can do at Barnes & Nobles or University Cellar. Others would rather have their books picked for them, as is done at Ulrich's. offer many options Dan Durda, an LSA senior, said he geable, but that there were not liked Ulrich's system of getting tex- enough employees. tbooks for customers. "At the begin- "There's one 'U' Cellar employee in ning of the year, when it's crowded particular who is very helpful," one and there are a lot of hassles, you can law student said. "He knows where just throw your list and they'll find and what I have to look for. At the books for you," Durda said. Ulrich's I don't like having to go to the University Cellar's system has its front and then go back because they advocates. don't know what they're talking "You can pick your own books, new about. And Barnes and Nobles is a or used, and I like that. You can find a joke. I was treated rudely there." book that someone hasn't written all Bill McRoy, an engineering over in," said engineering sophomore sophomore, said, "There are too few Roy Silver. people to help in general, and this is According to University Cellar especially pronounced at the U Cellar manager Jane Self, the store's recent during the beginning of the term." market survey showed that "among University Cellar was formed 15 upperclassmen, they (students) liked years ago by a group of students who to choose their own books, but in- wanted a University-run bookstore. coming freshmen, perhaps a little in- Typically for that era, the students timidated, wanted someone to hand protested and sat-in at the Student them their books." Activities Building until the Board of Barnes and Noble offers students, Regents finally agreed to form U "the best of both worlds," said Cellar. Today, U Cellar remains a general manager Jerry Maloney. non-profit bookstore and does not "We'll do it either way: you can give receive subsidies from the Univer- us your schedule and we'll get your sity. It is governed by a group of books, or you can do it yourself if you students, faculty, and administrators. have the time." Barnes and Noble is the newcomer After course books, the next biggest to Ann Arbor. It first opened in selling items at bookstores are either January 1985, while Ulrichs has school supplies or 'soft goods,' usually been selling books for 52 years. University paraphenalia such as Ulrich's has two annexes, Ulrich's sweatshirts, hats, and mugs. Again, Electronics and the old location of prices and quantity do not differ Tice's clothing store, both on South significantly among the other three University. stores, but Barnes and Nobles has a large selection, according to Maloney. Barnes and Nobles is the only store to offer refrigerated drinks and food as well as a sizeable number of books other than textbooks. Most students, however, said they usually go to Border's book store for paper- backs. Help A few students believed the staff at University Cellar was more knowled- By AMY MINDELL Last year, college students nationwide borrowed $10 billion to attend school. This debt, which has grown by 300 percent since 1979, is causing concern over what one ad- ministrator called "mortgaged futures." At the University, undergraduates borrow an average of $4,000 to $6,000, and graduate students $4,000 to $10,000 a year, estimates Harvey Grotrian, director of the financial aid office. Educators attribute the excessive student loans to in- creases in tuition and college costs, and a decrease in financial aid under the Reagan administration. Lack of funding blamed Although state and federal financial aid programs have remained stable over the past six years, funding has not kept up with inflation rates. Because of rising costs, Grotrian said federal aid in 1985-86 was 25 percent less than in 1980-81. This makes it difficult for today's students who must get by with financial aid that was sufficient in 1980. The decreasing availability of student aid, along with rising tuition levels, force students to find other ways to pay for college. "It is a growing concern. More students are borrowing, and borrowing to the maximum. Students are caught bet- ween a double-edged blade of spiralling tuition costs and declining financial aid, and that has moved them into debt faster than anything," he added. Paying back debts Student debt worries officials for other reasons. The default rate-students not repaying their loans-is an "alarming" problem for the government, said Secretary of Education William Bennett. Nationally, the default rate is just under ten percent, according to Bob Jamroz, an education department of- ficial. The default rate may rise even further because of the increased loans taken out. The University's default rate, however, is lower at around seven percent. The University's senior financial aid officer, Tim Christiansen, however, is not alarmed. "People need to change their conception of what loans are, and accept the fact that many of the people who need loans have problems repaying them. Legislators and the public have to accept this and not get so 'wiggled out' with a ten percent default rate. That 90 percent being paid back is great," Christiansen said. Andy Geer, a business school junior, hasn't thought much about paying back the $6,000 to $7,000 he will owe by graduation. But he says he will not skip out of repaying the loans. "I know I wouldn't want to default. They've helped me get through school-and you really can't beat the interest rates. I definitely feel obligated to pay them back," Geer said. "If it wasn't for student loans, I wouldn't be here," said Michael Cucci, a dental student. William Ghans, a third year medical student, also says he will repay his loans, although "they can't take blood from a stone." Ghans said he will owe up to $50,000 when he graduates from medical school next year, with the first payment' due two years into hospital residency. Residents earl about $20,000 per year. "It's not good, but I realized the situation before I came, to medical school. I am lucky to have received the loans," Chans said. But some officials, nationally and at the University, are. worried that sudents do not understand the terms of their loans. They recommend "indebtedness counseling" for prospective borrowers. - Effect on careers Some officials also worry that undergraduates may turn away from a liberal arts education for more lucrative majors, such as in the sciences. They also fear that fewer graduates will enter service professions, but will instead embark for higher paying fields. Students also hesitate entering graduate or professional schools because they fear more debt. A recent study does indicate that students may be choosing their majors based on economic realities, rather than their ideal career choices. The Carniegie Foundation for the Advancement of Teaching reported that students with sizable debts "tend to concentrate in fields where they can expect high star- ting salaries." Officials also worry that graduates with large debts will not actively support the economy. "Many young adults are graduating with thousands of dollars in loans and can't pay them back. You have to work many years to pay off the loans before you can do other things with the money, like buy houses, cars, and luxuries," Christiansen said. Free grants? Another dispute has centered around whether students should receive free grants for college, with no payback in- volved. Jamroz said he favored grants over loans, especally for low-income families-families of four who make under $18,000 per year. But Ghans said it's more difficult for a middle-income student to get through college than a student from a poor family. "The people being hurt are those whose parents are 'rich' on paper, but have other expenses to pay, like other students in school. It's almost better if you're destitute than middle class," Ghans said. Since 1980, the federal government has increased restrictions on student loans. Students now must be from families making less than $30,000 to automatically qualify for a loan. "Since 1980, we have had to check the family's income, family size, and the number of children in college. Thenwe look at national education association tables and calculate whether the student can get a loan," Grotrian said. 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