The Michigan Daily-Wednesday, July 9, 1980-Page 3
Local Scene
CHANGES CREATE HAVOC FOR FINANCIAL AID
Congress decreases BEOGs

By JOYCE FRIEDEN
Changes in allocation and distribution of federal
grant and loan monies have created havoc for the
financial aid offices of more than one college in
Michigan, according to financial aid officials.
Both the federally funded Basic Educational Op-
portunity Grant (BEOG) and the National Direct
Student Loan (NDSL) programs were up for
Congressional approval this year. Although both the
House and Senate finally passed a financial aid bill
that will reduce each student's BEOG by $50, the
weeks of uncertainty about what Congress was going
to do led to many problems for financial aid offices in-
colleges across the country.
According to University Associate Director for
Financial Aid Jim Zimmerman, the House passed the
bill fairly quickly, but the Senate's hesitancy made
aid officers uncertain as to what direction to take.
"The $50 reduction requires a change in the
existing laws (governing financial aid)," Zimmer-
man explained. "The bill went through the House, so.

the government sent out payment schedules (tables
used by the University to determine a student's
grant) with the $50 reduction accounted for. Then,
when it looked like the Senate wasn't going to pass the
bill, the Department of Education thought they would
have to use a 'rateable reduction' schedule (a plan in
which those who need the least amount of money get
the most deducted from their awards). They even
sent out new payment schedules. But then, at the last
minute, the Senate passed the bill, so the $50 across-
the-board reduction became law."
Although Zimmerman's office is complying with the
$50 cut, other colleges are not ready to apply that
reduction. "We don't have a definite policy at this
point because the government keeps changing its
mind," said Robin Peterson, Michigan State Univer-
sity financial aid office supervisor.
Western Michigan Financial Aid Director Edward
Harkenrider said that the $50 reduction works out
better financially for Western Michigan students.
"Using the rateable reduction plan, the college would
have lost about $700,000 in aid funds, but with the $50_

cut our loss is reduced to $200,000," he said.
Harkenrider's office is employing the $50 cut method
"because it's the more 'likely' outcome of the bill
... we don't anticipate that the president will veto it,"
he said.
Zimmerman added that federal officials also
changed the eligibility index of the BEOG for lower-
income students still dependent on their families. He
said the change will affect only 100 University studen-
ts receiving aid, and all of those will end up getting
more than they would have before.
The financial aid bills in Congress had supported a
decrease in the amount of money allocated for the
NDSL program. "Actually, all that has been done is
to avoid a decrease in loan allocations," he said.
"Congress was considering cutting funds for the
program, but since they didn't get full approval in
time, the law forces them to allocate the same
amount of funds as they did last year. In fact, the
University of Michigan will be receiving $1.25 million
See CONGRESS, Page 11

Regent Dunn
says tuition
hike could
exceed 15%

By MITCH STUART
University Regent Gerald Dunn
predicted yesterday that tuition will in-
crease at least 15 per cent for the
academic year 1980-81.
"The way it looks now, it'll be at least
that high," the Lansing Democrat said
when asked about the 15 per cent figure.
UNIVERSITY PRESIDENT Harold
Shapiro said last night University
executive officers have not yet finalized
their tuition increase recommendation
for the July 17 and 18 Regents meeting.
The figure should be known "sometime
this week," possibly by tomorrow,
Shapiro said.
University officials have
acknowledged a tuition hike of ap-
proximately 12 per cent will probably
be necessary.
Regent James Waters (D-Muskegon)
said Dunn's prediction was too high. "I
don't think I'd support 15 per cent," he
said. "I think that's out of line."
UNIVERSITY administrators have
been frustrated in their attempts to
estimate the state's higher education
budget. The latest University estimate
calls for a three per cent increase in
state appropriations, but Dunn said
even that figure seemed too high. "I'm
not very optimistic," he said.
When the tuition increase was
discussed at the March Regents
meeting, Dunn was the only Regent
who favored a ceiling on the hike-he
said the maximum should be set at
around 13 per cent.

In a telephone interview last night,
however, Dunn said he abandoned that
idea when the state's worsening
economy became evident.
THE LANSING Regent said he sup-
ported the administration's plan for
laying off at least some University staff
members-if the entire staff were
retained, he said, the tuition increase
would have to be 18 to 20 per cent.
"This is the third so-called recession
I've been through on the Board and
layoffs have never been necessary. I
don't think we'll be that lucky this
time," he said.
Dunn emphasized that long-term
planning of the kind now being under-
taken by University officials is essen-
tial for the University to survive the
next few yesrs :
. "IT TOOK THE state a couple of
years to get into this-it'll takea couple
of years to get out."
Several other members of the Board
declined to speculate on the tuition in-
crease figure, but Regent Paul Brown
agreed with Waters that the 15 per cent
estimate was too high.
"That sounds like a lot. I'd have to
have a lot of convincing to vote for
that," the Petoskey Democrat said last
night.
Dunn cited income and sales tax
revenue decreases, welfare claim in-
creases, federal budget cutbacks, and
the ailing condition of the auto industry
as key factors in the state's depressed
economy.

A CANDY BAR purchased last night at Big Ten Party Store, located at 1928
Packard, revealed three tiny maggot-like insects feasting on the chocolate.
Employees charge the store's owner knew that some of the two-year-old candy
had bugs when he ordered them to sell it at half-price.
Worker"s say buggy
candy knozwitngly sold.


By KEVIN TOTTIS
and NICK KATSARELAS
A local party store intentionally sold
candy bars infested with insects, em-
ployees claimed yesterday.
Workers at the Big Ten Party Store,
located at 1928 Packard, said the candy
had been in storage for two years. In
addition, they charged, the owner, after
discovering the candy was infested, or-
dered the approximately 250 bars sold
at half-price.
BUT THE OWNER, Eugene Towner,

denied he had any knowledge of the in- -
cident. "I didn't know anything about
it," he said. "I wouldn't have it happen
for anything."
According to an employee at the
store, approximately two weeks ago a
customer brought in a Zaanland
chocolate bar "covered with bugs." As
a result, a second employee took them
off the retail shelves. "As far as I
know," the first employee said, "there
was one bar open on the shelf he
(Towner) had to have seen."
See WORKERS, Page 6