Tuesday, February 8, 2005
Sam Singer takes
on Paul Krugman
ThE MEN'S BASKETBALL TEAM TO BATTLE NO. 1 ILLINOIS ... SPORTS, PAGE 9
Arts 8 Leigh's direction
shines in drama
One-hundredfourteen years of editorialfreedom
Ann Arbor, Michigan
Vol. CXV, No. 76
©2005 The Michigan Daily
Bush asks for
Perkins loan program
would be defunded under
new proposed budget, hitting
'U' students especially hard
By Justin Miller
Daily Staff Reporter
Federal funding for the Perkins loan program,
which gave $17 million in loans to 6,750 Univer-
sity students last year, would be phased out over
10 years in the new federal budget President Bush
submitted yesterday to Congress.
But Bush's 2006 proposed budget would use the
money saved from the cut to partially fund increas-
es to the Pell Grant program, raising the maximum
grant from $4,050 to $4,550 over the next five years
and eliminating its current $4.3 billion shortfall.
University Director of Financial Aid Pamela
Fowler said the changes would be a net loss for
"The University of Michigan is either number
one or two in Perkins loans universities in the
nation," Pamela Fowler said. "We won't get an
additional $17 million in Pell Grant funds if he
takes away Perkins."
Perkins loans are given to 673,000 college
students yearly, or 3 percent of all college stu-
dents nationwide. The federal government and
universities currently fund the Perkins loans
program together, at a cost of $7 billion annually
to the federal government and $2 billion to uni-
versities collectively. It is unclear whether or not
schools will decide to continue giving Perkins
loans with their own money should Congress
revoke federal funding.
Bush also plans to pay for Pell Grant increases
by cutting federal subsidies for banks and lenders
who provide loans to some students. The Depart-
ment of Education expects the cuts to pay for half
of Bush's higher education plan. Bank subsidies
are given by the federal government to pay the
difference between the market price of a loan
for college and the amount the bank is willing to
offer that loan for.
The expected result of the proposed budget
changes is a decrease in loans and an increase in
grants for students with financial need, allowing
more students to attend college overall.
The lack of subsidies would result in fewer
loans, said Donald Heller, a former education
professor at the University who now works at
Pennsylvania State University.
"Without the government subsidy, banks would
charge a lot more money for the loans," he said.
Heller said he expects banking associations to
raise the prospect of ending such loans if the gov-
See BUSH, Page 7
Donors, students share
concerns over stadium
Most alumni who donate to
athletic department support
renovations, but some worry
about seating capacity
By Anne Joling
Daily Staff Reporter
Not unlike University students, major donors
to the University's athletic department said
they are largely pleased with last month's pro-
posed stadium renovations. But some donors
said they are concerned about the addition of
luxury boxes and the possibility of a decreased
Joe Parker, associate athletic director in charge
of development, said the responses the depart-
ment received from donors were mostly positive.
"Most people are very favorable to the stadium
project," Parker said.
In addition to adding luxury boxes, the pro-
posed renovations include improved seating and
added safety measures, as well as the addition of
new restrooms and concession areas.
Other athletic department donors said they
think the luxury boxes will generate a great deal
of revenue that will be important to the future of
"The idea of having luxury boxes doesn't both-
er me," said Steven Percy, a University alum who
donated $26,500 in January of last year. "If they
will help (the football program) to stay competi-
tive and boost revenue, I support them."
But some donors have expressed concerns.
"I'm not really happy about the luxury boxes,"
said Roger Turner, a University alum who donated
$15,451 in cash and stocks to the athletic depart-
ment in January of last year. "I'm not sure, but
they could be just one more step down the road to
the commercialization of college athletics. I don't
know if I really like it or not."
Additionally, several donors have raised con-
cerns that the renovations might decrease the
number of seats in the stadium.
"I look at Michigan as being the best in a lot
of different areas, and to lose the distinguishing
factor of being the biggest stadium in the country
would really bother me," Turner said.
Follette Carter, an alum who donated $20,000
last May, also expressed concerned over the pos-
sible loss of seats.
"I know there is some controversy about the
potential decline in capacity, and I think that is
See DONORS, Page 7
Athletic Director Bill Martin speaks at the Ethics in Public Life Task Force forum at the Michigan League yesterday.
from ommunity at forum
By Karl Stampfl
Daily Staff Reporter
A diverse group of University faculty, staff and students gathered in the
Michigan League last night to discuss the ethical implications of every-
thing from the war in Iraq to whether libraries at Greek houses give fra-
ternity and sorority members an unfair advantage. The gathering was for
an all-campus forum on University President Mary Sue Coleman's Task
Force on Ethics in Public Life.
About 75 people came to the forum, which was designed to gather opin-
ions on which ethical issues the task force should concentrate on and how
it should engage them.
"We're trying to get input, a direction to go in," said Jason Weinstein, a
member of the task force and 2nd-year Law School student.
Spurred by ethical lapses in American society in areas such as big
business, religion and journalism, Coleman created the task force to
explore how the University could best study ethics in public life. She
announced it last September as one of four major initiatives in her State
of the University address.
The task force plans to prepare a report by the end of March detailing
what direction it believes the study of ethics should take at the University.
In April, it plans to make a recommendation to Coleman. From there, the
See ETHICS, Page 7
lack of study abroad
program in Israel
for ways to lower
By Amber Colvin
For LSA junior Jennifer Rosen, Israel
was the only place where she wanted to
"I wanted to be a part of the culture and
live their life," said Rosen, who is spending
her winter semester in Israel at the Ben-
Gurion University of the Negev in the city
of Beer Sheva.
At Hebrew University in Jerusalem,
LSA junior Sol Adelsky is also fulfilling
his strong desire to study in Israel.
"Although words can't do it justice,
Israel is a country where I feel at home,"
. Adelsky said.
But Rosen and Adelsky are not study-
"I think for a school that strongly
encourages studying abroad, it's disap-
pointing that they're limiting the options
for students who would prefer to study in
alternative places," Gonik said.
Without an Israel study-abroad program,
Gonik said, University students longing to
study in Israel face many obstacles.
"That creates a lot of barriers for stu-
dents who would like to do that ... (includ-
ing) no advisors, losing financial aid and
scholarships and hassles dealing with
credit transfers," Gonik said.
AMI, in cooperation with Hillel, started
the student petition this semester. Gonik
said hundreds of students have expressed
interest in studying in Israel.
Carol Dickerman, director of the Office
According to study,
drive up prices with
frequent new editions
Daily Staff Reporter
When economics lecturer Janet Ger-
son saw the cost of a new edition of a sup-
plementary book for her course, she went
straight to the publisher of the book tell it
that the price was too high. In response,
the publishers lowered the price at which
the book was sold at universities across
"We're trying to put pressure on
publishing companies to change their
practices," said Mike Akresh, an LSA
sophomore and member of PIRGIM.
The study, conducted by the Califor-
nia Public Interest Research Group, con-
cludes that the financial burden brought
on by textbooks is an unnecessary one.
The report highlights how the practices
of textbook companies exploit Ameri-
can college students. Titled "Ripoff 101:
how the publishing industry's practices
needlessly drive up textbook costs," the
report addresses practices that it finds
questionable among American publish-
One of the main conclusions of the
report was that students in the United
,, . _