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June 05, 1981 - Image 8

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Michigan Daily, 1981-06-05

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Page 8 Friday, June 5, 1981 The Michigan Daily

The Michigan Daily
Vol.XCI, No. 22-S
Ninety Years of Editorial Freedom
Edited and managed by students
at the University of Michigan
Reign ofthe
new morali~sts
T HE LETTER opposite this editorial suc-
cintly encapsulates Washington's new
philosophy on financial aid to students: If you
need help, don't come crying to us.
College loan programs are in trouble -
everywhere. As the accompanying story by
Beth Persky spells out graphically, it may be
only a matter of months before many students
will be forced to suspend or terminate their
scholastic careers as available loan funding
begins to dry up. The aspirations of any number
of able, qualified collegians may soon be cur-
tailed not for want of talent but for simple lack
of money to stay in school.
To such need, the Reagan administration
says, in effect: Tough - you should have saved
your pennies. The White House san-
ctimoniously postulates that the upcoming cuts
"should encourage families and students to
prepare and save for their educations in advan-
ce." Such moralizing blithely overlooks the fact
that countless American families do skimp and
sacrifice toward their children's education and
still fall short through no fault of their own.
It's frighteningly easy to make moral
judgements on others' alleged lack of diligence
when the accusers have never experienced
economic hardship themselves. With the pater-
nalistic smugness of a Welsh coaltown baron,
the administration asserts its programs will in-
duce "those who work to save ... developing in
them the strength of character that has always
been the source of America's success.''
J. P. Morgan is alive and well in Washington.
Good luck, students.

Student loans: An
imperiled species?.
interest while still in school would currently to pay inte
By Beth Persky bring massive losses in gover- before students gr.
nment revenue to banks, used during the 6 to 9 n
The already-confusing process of period after graduati
student financial aid is becoming Though it has be
even more confused. If Ronald The following letter was sent, banks fear high di
Reagan succeeds with his upon request, to the Michigan from student loans,n
proposed budget cuts, thousands Student Assembly: be further from the
of University students will have ding to John Geiss,a
difficulty financing their Dear Students.- for Metropolitan St
education. Many may be forced President Reagan has requested Detroit-area saving
to attend lower-priced in- me to respond to your message ex association extend
stitutions, or even to quit school pressing your concern about his program to any stu
entirely. proposed reductions in the amount permanent address
Many graduate and of money available for federally- Oakland, or Macomb
professional students who depend guaranteed student loans. He has cording to Geiss, t
upon the guaranteed student loan asked me to assure you that this return is higher on G
(GSL) program as their sole recommendation was not made other types of loan
form of financial aid will be for- easily. default rate is nonsi
ced to reconsider their The President fully understands Michigan.
educational plans. The Univer- the importance of an education, But the financial
sity could regress to the elitist in- and he knows the ways in which an should not focus en
stitution it was before financial education assists the individual GSLs. Also in line for
aid programs became who acquires it. He is also aware are Pell grants a
widespread. of the number of worthy programs direct student loans
Many minority students who that have grown within the Federal interest rate tha
depend upon grants, work-study, budget over the past several years Reagan's gouges frc
and national direct loans to at- and the way in which these grants would probab
tedcolg myhaete or programs contribute to our 500,000 to 600,00
slammed in their face, as well as nationally from the p
The changes in student loan
many working-class white programs recommended over the A serious threat to
students who have only recently next few years will increase the forms of aid is posed I
had the opportunity to attend the amount that students are expected block grant proposa
University. to contribute on their own, and would merge college
Most of us are familiar with the reduce the eligibility for loans to national direct studen
current plight. Many, however, studentsfrom families with annual supplemental grants
are confused by the legislative incomes greater than 830,000. block grant program
process that's writing the book. Relying on the traditional would have to put up
Subcommittees in the U.S. House American notion that the in- match for funds, w
and Senate have been burdened dividual who benefits from the probably leave it s
with the task of divying up the $33 education should contribute to his money sooner or late]
billion in budget cuts proposed by achievement, the changes in these to curtail aid.
the President, and we may know programs should encourage Currently, thou
by the end of the week exactly families and .students to prepare University students a
where the cuts will be made; and and save for their educations in unsure of their financ
the situation looks dismal indeed advance. The President will stand for fall. Changes at
for financial aid. by his commitment to avoid every day - so quic
Recent newspaper articles in- eliminating programs that provide United States
dicate that cuts won't take effect a social safety net for the truly Association, a prim]
before the 1982 fiscal year, Oc- needy. this issue, has been u
tober 1. If these publications are Given the relative shortage of out information tha
true, aid will not be curtailed for itphe i thec ealy ge sopu ate an outdated immediatel
the 1981-82 academic year decrease over the next few years. If there ever wasn
But it would be unwise to be Our national need to reduce mass student organ
overly confident: Congress is full Federal expenditures as a means of coalition-building, th
of surprises, and appears to be controlling inflation must be self-interest is so e
speeding Reagan's budget to im- reflected in policies in all areas. that even the mosi
plementation. Though some had The President appreciates your students should j
earlier doubted completion of the concern on this matter and trusts struggle.
budget before recess in August, it that you will understand the Because this isa
now appears the answer may relationship of these budget reduc- process likely to c
come before the end of the month. tions to his program for economic years, it is not too late
Changes in financial aid may be recoverty. The revival of the least to voice an o
implemented by July 1, and American economy will encourage PIRGIM student aid
revisions in the 1982 budget could those who work to save for their urges you to write o
be retroactive. educations, developing in them the legislators, both on a
U.S. Rep. Jim Dunn (D-East strength of character that has national level, and
Lansing), aware of this danger, always been the source of concern. It is only t
has introduced legislation which Americans'success. open doors of highe
would freeze changes in the GSL With the President's best wishes, that this country will:
program through October. Many -Anne Higgins - instead of backwa
banks, unsure of the status of the Director of dark ages.
GSL's for the fall, are unwilling Correspondence Beth Persky, an L
to accept applications. The White House
In this struggle, banks may be Washington is currently servin
our greatest ally: Reagan's plan May 20 PIRGIM Student
to force college students to repay Force.

rest on loans
aduate and
month grace
en said that
efault rates
iothing could
truth accor-
a spokesman
avings. This
;s and loan
ds its GSL
dent with a
in wayne,
county. Ac-
the rate of
SL's than on
ns, and the
gnificant in
aid lobby
tirely upon
budget cuts
nd national
(at a lower
n - GSL's).
om the Pell
ly eliminate
0 students
more basic
by Reagan's
l - which
nt loans, and
into a single
. The school
a 10 percent
vhich would
trapped for
r and forced
sands of
re in limbo,
ial situation
re occuring
kly that the
e mover in
nable to put
t won't be
a time for
ization and
is is it. The
vident here
t apathetic
oin in the
an ongoing
ontinue for
to act or at
pinion. The
task force
r call your
state and a
voice your
through the
r education
move ahead
rds into the
.SA senior,
g on the
Aid Task





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