I eC 1 iga1T at1V ONE 1UN)11)tEIGH Ann Arbor, Michigan Monday, January 28,2008 michigandaily.com 'LITTLE BROTHER' GETS THE BEST OF BLUE IN HOCKEY, HOOPS IJNIEnT ENM NT 'U' ranks 8th after $1.4 billion increase Michigan's 25.4-percent return on investments was the highest of any school in nation's top 10 By ELIZABETH LAI Daily StaffReporter The University's $7.1-billion endowment ranks eighth among all colleges and universities nationwide, according to an annual report released Thursday. The report, released by the National Association of College and University Business Officers, showed that 2007 was a good year for most college endowments. The national average rate of return was 17.2 per- cent, but the University did even better, posting a 25.4- percent return on its investments. The return was the largest of any school that finished in the list's top 10. With endowments swelling at schools across the country, rising tuition costs have led many to question how the benefits are distributed and why they don't lessen the cost of attending college. One reason is that most of the money colleges earn on investments cannot be spent. Universities usually spend about 5 percent of their investment returns, See ENDOWMENT, Page 7A ZACHAKY MEISNEK/Daily The Michigan State hockey team celebrates its 1-0 victory over Michigan at Yost Ice Arena Friday night. The teams skated to alt-1 tie at Michigan State the following night. Yesterday, the Spar- tans men's basketball team prevailed over the Wolverines on the hardcourt, too, winning in convincing fashion in East Lansing. FOR MORE, SEE SPORTSMONDAY, Page 1B INTERNATIONAeL ST UDEmNTSe fCIh ange keps Is from int' students Secretary of State says policy didn't take int'l students, workers into account By BETH WITTENSTEIN Daily StaffReporter A decision to stop granting Michigan identification to immigrants without permanent resident status could prevent international students at the University from getting state driver's licenses. Last week, Michigan's Secretary of State made permanent legal status in the United States a requirement for anyone applying for state identification. Michigan Attorney General Mike Cox issued a statement last month saying illegal or non-permanent immigrants shouldn't be granted Michigan driver's licenses because that would be inconsis- tent with federal law. Secretary of State Terri Lynn Land followed the opinion by changing the policy. The change was an effort to crack down on illegal immigration by mak- ing it harder for undocumented immi- grants to live and work in the state. But the decision will also affect temporary immigrants living in the state legally for work or educational purposes. In the past, Michigan law followed former Michigan Attorney General Frank Kelley's 1995 opinion that no one should be refused a driver's-license based on legal citizen status. Before last week, Michigan was one of eight states in America that didn't require proof of legal residence to apply for state identi- fication. Rackham student Hsien-Chang Lin, a committee member of the Michigan Taiwanese Association, said interna- tional students often use a Michigan driver's license as a means of identifica- tion rather than a passport. A driver's license is often asked for as identifica- tion while using credit cards or to verify age when entering bars, Lin said. "It is not possible to bring a passport every day, because it is too important," Lin said. "The policy change should See STATE ID, Page 7A WELL-ENDOWED COLLEGES Schools with the largest endowments A NEW ID POLICY Now, most international students can't get a Michigan state-issued ID " Under a new law, individuals mustnow have permanent legal status inthe U.S.to apply for state identification. 0 Citizens of certain countries can obtain permission to drive in Michigan if they have a valid driver's license from one of the 61 countries listed on the International Center's website. * State lawmakers have proposed two bills - one in the state Senate and a companion bill in the state House - which would allow legal,non-resident students and workers to obtain identification. c 0 -. c TEXAS A&M 0 5 10 15 20 25 30 35 Endowment size (in billions of dollars) sOURcE: NAT'L ASSOC. OF COLLEGE AND UNIVERSITY BUSINESS OFFICERS UNIVERSITY RESEARCH 'U' relying less on federal funding MIDDLE EARTH SHRINKING Research budget grew in 2007, but federal funding grew at lower rate By ELAINE LAFAY DailyStaffReporter While the costs and scope of University research continue to grow, the federal government's share of the University of Michi- gan's research budget has dropped, according to University research- fundingreports. Federal research funding to the University has been increasing at a sluggish pace over the last several years because of decreases in the national research budget, said Lee Katterman, a project manager in the office of the Vice President for Research at the University. While giving a report to the University's Board of Regents ear- lier this month, Stephen Forrest, the University vice president for research, said the University's fed- eral funding grew by 1.8 percent during the 2007 fiscal year after a 2.4 percent increase during the 2006 fiscal year and a 6.5 percent increase during the 2005 fiscal year. Overall, the University's research budget grew by 3.3 per- cent to $823 million during the fis- cal year that ended on June 30, but Forrest attributed the increase to investments from the private sec- tor. During the Regents meeting, Forrest said he doesn't expect an increase in federal funding for the current fiscal year. Katterman said federal allo- cations could change over time See RESEARCH, Page 3A CHANGES IN FEDERAL FUNDING Percentage increase in federal funding per iscal year 2003 .... 15.9% 2004 ........1.6% 2005 ............... 6.5% 2006 -............. 2.4% 2007.1.8% SoURCE: UNIVERSITY OF MICHIGAN STUDENSTUDENTUDENT LENDING New site allows students to lend, borrow money Prosper.com allows lenders to check borrowers' credit By JILLIAN BERMAN Daily StaffReporter Instead of lending and borrow- ing money through banks, some business-savvy students are using the person-to-person loan web- site Prosper.com to lend money or apply for student loans. Along with other person-to- person lending services, including Lending Club and Lending Circle, Prosper offers students a chance to earn increased returns with higher lending interest rates than available at banks. The lending service also lets student borrow money without going through a bank. With Prosper, users first cre- ate a profile that specifies wheth- er they want to lend or borrow money using the website. An individual's profile also displays personal background information and his or her credit score. Although there are many stu- dents from other colleges and universities seekingstudent loans on Prosper's website, many Uni- versity students said they use the website to lerid money. LSA sophomore Evan Plisner, president of the Michigan Invest- ment Club, said he uses Prosper to invest the club's money. "We were looking for different ways to invest that weren't tied to the stock market," he said. "And what Prosper allows you to do is to diversify both your risks and returns." Depending on an individu- al's credit score, Prosper offers lenders a higher interest rate than most banks, which means increased returns for lenders. Plisner said he has found that he can get a higher interest rate when lending money on Pros- per than he can lending through banks. University alum Brian Walby, See LENDING, Page 7A CHANEL VON HABSBURG-LOTHRINGEN/Daily Middle Earth owner Cynthia Shevel plans to make her store smaller this spring. The popular South University Avenue novelty store is holding a sale on much of its mer- chandise to fit into the smaller space. TODAY'S HI: 39 WEATHER LO: 35 GOT A NEWS TIP? Call 734-763-2459 or e-mail news@michigandaily.com and let us know. ON THE DAILY'S WEBSITE Video from around Ann Arbor MICHIGANDAILY.COM/ALLVIDEOS INDEX NEW 5................................2A A RTS ........................... ..SA Vol.CXViI,No.84 SUDOKU............................3A CLASSIFIEDS......................6A O2008TheMichigan Daily OPINION......... .....4A SPORTSMONDAY.................1B michigovdailycom A p