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September 30, 1998 - Image 1

Resource type:
The Michigan Daily, 1998-09-30

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One hundred eight years- feditorhlfeedom

News: 76-DAILY
Display Ads: 7640554
Classified Ads: 76440557

sWe Mnesday
September 30, 1998




loan rate


By Mike Spahn
Daily Staff Reporter
Students stretching their dollars to pay for
their education will have a little more breathing
ace this week, assuming President Clinton
ns the reauthorization of the Higher
Education Act.
The U.S. House of Representatives and the
Senate passed the provisions by overwhelming
majorities Monday and yesterday, respectively,
just in time to beat the Oct. 1 deadline imposed
by the current Higher Education Act.
The act includes a provision that will reduce the
interest rate students pay on guaranteed loans from
8.23 percent to 7.43 percent. Students with direct
s, the University's preferred loan program,

Clinton expected to sign student-friendly bill

also will pay the reduced rate.
Rep. Dale "Kildee (D-Flint), the ranking
Democrat on the House Education. and the
Workforce Committee, said he is pleased with
the legislation Congress approved and said it
now will allow the industry to hit the ground
running when the old legislation expires.
"We put together a good, bi-partisan bill,"
Kildee said. "This was an example of us getting
something done.'
Associate Vice President for University
Relations Tom Butts, the University's

Washington, D.C. lobbyist, said this change will
impact universities that use guaranteed loans far
more than it will the University, but it is a step in
the right direction.
Congress did not alter the previously
approved, lowered direct loan interest rate, Butts
said, and a provision allowing the consolidation
of loans also will help University students.
"We're delighted they didn't take away the
rate approved for July 1," Butts said. "Also, stu-
dents can now consolidate loans at the new
lower rate."

Students with loans at the higher interest rates
from previous years will be able to consolidate
those loans at the new rate, which is based on the
interest on a treasury bill plus 2.3 percent.
But that opportunity will end on Jan. 31, a
provision Butts said he is not happy about.
"The only reason for that is the loan industry
didn't like" the consolidation option, Butts said.
In addition to the interest rate decrease,
Congress approved an increase in the maximum
funding limit of Pell Grants, which the govern-
ment provides to economically disadvantaged

The current $2,800 cap gradually will be
increased until 2003, when it will reach its new
maximum of $5800.
This will help students who need more than just
one type of loan to finance their education, Kildee
"Often times students need to package loans,
Pell Grants and other sources to pay for school,"
Kildee said.
One major point of debate for the committee
when it discussed the act last spring was how to
keep banks, the providers of guaranteed loans, in
the program even though their revenues would
See BILL, Page 2

Fed votes Burning away imperfections

to reduce
funds rate
ro 5.25%
Federal Reserve moved to inoculate the
U.S. economy against a spreading glob-
al crisis yesterday, cutting a key interest
rate for the first time in nearly three
The quarter-point cut in the federal
funds rate to 5.25 percent will mean
slightly lower borrowing costs for mil-
lions of Americans on everything from
auto loans to home equity lines of cred-
it if commercial banks, as expected,
follow suit in coming days by lowering
their benchmark prime lending rates.
The prime rate is currently at 8.5 per-
Wall Street, which had hoped for a
*eer rate cut, sent stock prices plung-
ing by more than 100 points after the
Fed announcement but later recovered
somewhat. The Dow Jones industrial
average ended the day down 28.32 at
Congressional critics, who have
complained that the Fed has been slow
to recognize the threat of Asian eco-
nomic troubles to American manufac-
rs and farmers, were also unhappy.
'America and the rest of the world
needs ,stronger action by the Federal
Reserve," said Sen. Tom Harkin (D-
Iowa). "The weakening of foreign
economies is dragging down the U.S.
Private economists, however, said
that yesterday's decision to lower the
federal funds rate, which has been at
5.5 percent for 18 months, still repre-
sented a remarkable turnaround for Fed
policy-makers, who as recently as July
Sleaning toward raising rates to
fight inflation.
Many economists said yesterday's
reduction was probably just the first of
a series that would send the funds rate
down by a full percentage point over
the next year.
"It is better for the Fed to take it
step by step so long as they don't take
too long between steps,' said Allen
S i, chief global economist at
Dark Decision Economics.
Federal Reserve Chair Alan
Greenspan first signaled the Fed's
change of heart earlier this month when
he warned that the United States was
unlikely to remain an "oasis of prosper-
ity" in the face of a currency crisis that
began in Asia, then spread to Russia in
August and is now threatening coun-
tries in Latin America.
So far, the main impact on the
United States has been to send the trade
dcit to record levels. American
exporters have lost vluable overseas
markets, and Asian products, made
cheaper by currency devaluations, have
flooded into this country.
But Russia's botched devaluation of
its currency brought the crisis closer to
home by disrupting Brazil and a num-
ber of Latin American countries,
prompting panicked investors to flee
tlie countries' markets.
With Clinton administration offi-
cials working behind the scenes to help
the International Monetary Fund come
up with a multibillion-dollar bailout for
Brazil, Greenspan indicated last week
that the Fed stood ready to do its part to
calm turbulent markets.
7T. ...-------------. .7....7 .. T~:

Breast cancer
fails to scare
some women
By Lauren Gibbs
For the Daily
Breast cancer is the No. I diagnosed cancer in
women, but few young female students say they worry
about how the disease could affect them.
In 1998, more than 180,000 American women will
learn that they have breast cancer, and more than 40,000
women will die from it. But early detection and prompt
treatment can significantly reduce their suffering and
chance of death.
For this reason, the Board of Sponsors of National
Breast Cancer Awareness Month come together every
October to publicize the importance of early detection
to women nation-
Even with these - -ast cancer --
startling statistics, facts
younger women dofa
not consider them- U This year, more
selves to be at high than 180,000
risk of breast cancer. : American women ;
LSA first-year will be diagnosed.
student Jennifer More than 40,000
stdn enie will die from it.
Kaylin said she does
not worry about the the most common
dangers of breast;t cancer among
cancer. women.
"I never really L---------------------
think about breast
cancer. No one in my family had it, so I never consider
myself at risk," Kaylin said.
But according to NBCAM, 80 percent of diagnosed
patients have no family history of breast cancer, and 70
percent of the patients have no identifiable breast cancer
risk factors.
"Eorly detection is the key. More than 90 percent of
women whose breast cancer is found and treated early
will survive," said Amy Boyk, executive director of the
Washtenaw County office of The American Cancer
The ACS also recommends all women more than 20
years old should perform a breast self-examination
every month.
Ronald Mulder, a gynecologist at University Health
Services, estimated 20 to 25 women come into UHS
each month concerned because they found an abnormal-
ity in their breasts.
"Every woman who comes into UHS for a gynecolog-
ical purposes receives information about the importance
of doing a breast self-exam," Mulder said.
"We want to reinforce self-teaching models so
women can feel what an abnormality would feel like,"
she added.
But the risk of a young woman developing breast can-
cer is very low, according to the ACS.
"Only one in 100,000 women will develop breast cancer
between the ages of 20 and 24, but by informing young
See CANCER, Page 2

Deepak Baskar and Chlthra Perumalswaml bum camphor last night to metaphorically bum away their imperfections at the Hindu Students Council
first annual Saraswatl Puja ceremony in Mosher Jordan Residence Hall. See story on page 3.
ttorne ener can dates
make cme, pnsons ey issues

By Jason Stoffer
Daily Staff Reporter
Democrat Jennifer Granholm and
Republican John Smietanka have looked citi-
zens straight in the eyes and said they will not
let criminals onto Michigan's streets.
And both state attorney general candidates
have put their money where there mouths are.
During her four years as a federal prosecutor
in the Eastern District of Michigan, Granholm
attained a 98-percent conviction rate. A
Harvard LawSchool graduate, Granholm now

serves as Wayne County's corporation counsel.

"I do what
Frank Kelley
does for the
state in the
largest county
in the state,"
said. "I oversee

[W) k 0[@g
t trof
a $9.5 million budget and 75

Smietanka has served as a county prosecut-
ing attorney and as the U.S. attorney for the
Western District of Michigan, and his accom-
plishments include winning a case before the
U.S. Supreme Court,
During the past seven years, Michigan's
crime rate has decreased 25 percent.
Smietanka and Granholm said they will con-
tinue efforts to be tough on violent criminals.
Gov. John Engler said he in part attributes
See CRIME, Page 2

Students celebrate Yom Kippur

By Nick Faizon
For the Daily
For many people of Jewish faith around the world, today is a
time for fasting and reflection. Jewish students on campus plan
to do the same as they attend services to celebrate Yom Kippur.
"Yom Kippur is a time when we give ourselves to God," said
Alter Goldstein, a rabbi at the Chabad House. "We hope, during
this time, he will give us what we need for the next year."
The holiday began yesterday at sundown with the first of four
services and the start of a 25-hour fast. The fast ends today at
sundown with the fourth service, the climax ofthe holiday, when
Jews eat the break-the-fast meal.
During the fast, Jews are not allowed to eat or drink anything,
including water. Although this may seem difficult, many stu-
dents said they find it essential to the holiday.
"When I get hungry, I watch TV hang out with friends, or pre-
pare the break-the-fast;" LSA junior Stacey Ehrenberg said. "I
think about the good and bad things I've done."
LSA sophomore Esther Nelson said she has not fasted in the
past few years but plans on doing it this year.
-c ....,? ..,«.. ..;.... ,«,T.. ,...-- - - - - -.... , TT 1, -

Others students said fasting is not as important as other
aspects of the holiday.
"I'm not going to fast," said Rachel Abramson, a resident
physician at University Hospitals. "I feel the most essential part
ofYom Kippur is the review of your life, over the past year in par-
Although there are more than 6,000 Jewish students at the
University, most professors will still hold scheduled classes. It is
University policy, however, that students are excused from class-
es on religious holidays.
"I'm going to class tomorrow," said LSA junior Julie Marx.
"But I'm going to fast, too. It's important to do it and cleanse
your body of its sins.'
But many students said they plan to spend today in the syna-
gogue, praying and contemplating.
"It's not difficult, taking time to go to services," Sherman said.
"I consider it important."
Nelson also said she plans to attend services. "I am going to
reflect on the past year, what I could have done better, which
people I could have treated better."

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