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November 05, 2003 - Image 3

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The Michigan Daily, 2003-11-05

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LOCAL/STATE

The Michigan Daily - Wednesday, November 5, 2003 - 3

THIS WEEK

I

11 V LLZ1L1 1110 1 kilt l I

Professionals: Students
should watch out for debt

Five years ago...
University Regent Phil Power (D-
Ann Arbor) lost his bid for another
eight-year term on the Board of
Regents.
Power, a University alum and for-
mer Michigan Daily editor, received
only 22 percent of the vote, losing
to Ann Arbor residents David Bran-
don and Kathy White, who each
gained 25 percent of the vote.
Numerous University and state offi-
cials praised Power's 11-year serv-
ice to the University.
"Deep in his heart I'm sure he cares
greatly for the University of Michigan
and that is the greatest aspect of any
regent," said, Regent Dan Horning (R-
Grand Haven.
Power's father served on the board
from 1953 to 1965, and his first wife,
Sarah, held the same position from
1983 to 1987.
"I've served on the board ... and I
think I've contributed my share to the
University," Power said. "Now it is
time to move on to new challenges and
opportunities."
Ten years ago...
The Ann Arbor Police Department
began an investigation of three rapes
and sexual assault attempts that
occurred in Ann Arbor in one week.
In the latest incident, a man assaulted
a woman inside her apartment on
Miller Avenue.
AAPD Sgt. Phil Scheel said there
were no suspects yet, and he could
not say whether the incidents were
related.
"Most of the time there's no way to
explain it," Scheel said. "These things
kind of go in streaks."
Nov. 2, 1987
The University extended bus
hours for trips to North Campus to
3 a.m on Thursday through Saturday
nights. The change came after Uni-
versity transportation services
received about 800 responses com-
plaining about service ending at
2:15 a.m.
"On weekends it's a major trip to go
to central campus," Art junior Lisa
Baron said. "With a later bus, I'd be
able to stay on (central) campus longer.
It is a drag to leave someplace early
just to catch a bus."
Nov. 8, 1958
For the Michigan Union's Men
Weekend, officials enforced the old
rule of not allowing women to walk
through the front door without an
escort. The rule had not been
enforced since 1954. Doorman Al
Thomsen noted the trouble with
aggressive women who simply
pushed him aside and walked
through the door.
"Most of them went along with me
... but there were a few who didn't,"
Thomsen said. "I'll be glad when it's
all over."
Nov. 7, 1971
One-thousand-two-hundred anti-
war protestors rallied in Detroit to
demonstrate against the ongoing
Vietnam War and President Richard
Nixon's unwillingness to withdraw
U.S. troops from the region.
They marched from Wayne State
University to Kennedy Square,
chanting "Peace Now."
Nov. 7, 1984
City voters rejected a proposal by
a 2-1 margin to make Ann Arbor

"nuclear free."
If the proposal passed, University
professors would have had numer-
ous restrictions regarding their
research, including design of
weapons and various communica-
tions systems.
"I'm pleased the public has recog-
nized the importance of freedom of
inquiry and research," said Alan Price,
University assistant vice president for
research.
Activists expressed their disappoint-
ment with the loss.
"We were certainly hoping to win,
but we knew the odds were against us,"
said Janis Michael, coordinator for the
Nuclear Free Ann Arbor campaign.
Nov. 4, 1965
The University announced plans
for a year-long sesquicentennial cel-
ebration in August 1967. Potential
proposals included a national stu-
dent conference on a contemporary
issue, and an original musical or
drama performance by students.
The University encouraged differ-
ent schools to hold various cultural
k symposia and events.

By Cianna Freeman
For the Daily
At a lively seminar last night in
Angell Hall, representatives from Rock
Financial told students that the debts
they acquire today will follow them for
at least seven years.
"What you do in college will
come back to haunt you," said Bob
Walters, chief economist of Rock
Financial, as he kicked off the Real
Estate and Business Insider Semi-
nar. The forum commenced with a
concert from "The Rate Locks,"
prize giveaways and free food, fol-
lowed by a discussion panel.
The panel, composed of three repre-
sentatives from Rock Financial,
warned students that the status of their
credit is now completely electronic,
leaving nothing to personal interpreta-
tion. Moreover, small debts, like $200
or $300, can hurt just as must as the
bigger debts if they are not paid.
That's why it is imperative that stu-
dents know their Fair Issac & Compa-
ny score. One's FICO score is
generated by calculating factors such

as payment history and the type of
credit.
The prior information used to calcu-
late a FICO score can be found in a
credit report that shows how likely a
person is to repay - -
a loan on time.
The higher the Loa .po
score, the lower
the risk of default Wha's Is the I
on the loan. 35 percent pa
The panel
told the audi- *3Opercent an
ence how credit<
reports and I 15 per enle
FICO scores history.
influence piv-
otal aspects of ; 1.0 Percent ..
their lives.
Landlords look d percent tyj
at tenants' cred-
it histories toC...
help determine C ctD:(4d
the amount of(
their security
deposits. Some companies even pull
credit reports for reference when
considering an applicant for a posi-
tion.

"If you are going to take out debt, be
responsible and know yourself," said
David Hall, senior vice president of
Rock Financial.
Walters, a University alum, explained
the different types
of debts.
"If you are bor-
rowing to get an
appreciating asset,
rent history like mortgage debt
and student loans
)unts owed then that is good
debt. However, if
gth of cred you are borrowing
to get a depreciat-
ing asset, like a
i eredit credit card, then
that is bad debt,"
Of Crdit Walters said.
Student loans
>s< = F:CO carry small interest
1I.b$422 rates of about 2 per-
cent, while credit
cards often slam
those that can only make the minimum
payment with rates of upwards 18 to
23 percent.
But establishing a positive credit

DAVID TUMVN/UDil
Rock Financial Senior Vice President Stephen Luigi Piazza answers students'
finance questions in a presentation held In Angell Hall yesterday.

history is essential for the future,
when students will have to apply for
funding that requires a credit check,
like bank loans. Since "no credit" no
longer mean "good credit," one is
better off opening a credit card and
using it wisely than not having it at
all, Rock Financial Senior Vice-Pres-
ident Stephen Luigi Piazza added.
Walters advised students to begin
investing as soon as they graduate.
"Once you get started, out of school
and get your first job, start saving both
through your 401(k) and a mutual

fund."Walters added.
. Business School junior Joe Ament
commented, "This seminar gave stu-
dents emerging into the market insight
on what they should be doing," he said
The event was hosted by business
fraternity Alpha Kappa Psi. "We
are a professional business fraterni-
ty, so we like to inform students
about business-related subjects, so
when Rock Financial contacted us,
we eagerly accepted this opportuni-
ty," said Ryan Pletzke, LSA junior
and chairman of the event.

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