The Michigan Daily-Wednesday, May 6; 1981-Page 3
PUS loans in limbo
By MARK GINDIN
New state financial aid legislation,
which would provide loans directly to
parents to pay for the college
educations of their sons and daughters,
may not go into effect until January, if
it is implemented at all, according to a
University financial aid officer.
The Parental Loans for Un-
dergraduate Studies program, which
would provide federally subsidized,
low-interest loans to parents of college
students, was passed recently by the
state legislature.
PROBABLE CUTBACKS in financial
aid to college students by the Reagan
administration, however, threaten to
undermine the state PLUS program.
Dan Sharp, an aide to state Rep. Perry
Bullard, who sponsored the legislation,
warned that if federal funds for finan-
cial aid are cut, the PLUS program
may not have enough money to back the
loans.
According to the PLUS bill, now on
Gov. Milliken's desk awaiting his
signature, the state Department of
Education would act as a funnel for the
federal funds, Sharpe said.
The money is used to subsidize in-
terest rates of lending institutions who
loan money-up to $3000 per year-to
parents of college students. It is
"merely an extension of the present
GSL program," Sharp said.
"BUT," HE ADDED,"Reagan could
do away with the program without ad-
mitting it" by raising the interest rates
to market level, Sharp said.
The question is not if the governor
will sign it or not, "the question is how
long the program will last under the
new Republican budget," he said.
That question, according to Nowak, is
what is preventing the implementation
of a structure to distribute the funds.
"The lending institutions will not be
geared up for four to five months "after
the federal program is approved, if it is
approved at all," she said.
"I DON'T SEE us starting the
process in Michigan until at least
January," Nowack said.
If the PLUS loans to parents are im-
plemented, there will be several dif-
ferences between those and the GSL:
Graduate students are not eligible for
PLUS, and the payback period begins
60 days after the loan is received.
Parents may receive up to $3000 per
year at 9 percent interest for up to five
years. Each student in college will
represent a loan for the parents. A
student may still obtain a GSL while a
parent has a PLUS. Neither loan uses
income level as an eligibility factor.
RATHER THAN eliminating the
program entirely, Reagan may only
change some of the loan structure, ac-
cording to Nowack. Reagan may base
the loan on need, lower the interest sub-
sidy, or place a limit on the total
amount a family may borrow.
Any of these options could cut the
number of students applying for federal
loans by 60 percent, Nowack said.
Bikers soon to be ticketed
By JENNY MILLER no registra
Ann Arbor bicyclists may be in for a city or
surprise soon when police start handing registratio
out tickets for traffic violations and im- fee from 50
pounding bicycles that have not been STUDEN
registered with the city. bicycles at
"Ticketing is coming" by the end of this summ
this month, said Tom Pendleton, city fall, officia
bicycle coordinator. Both he and Police Pendleto
Chief William Corbett said their con- fees provid
cern. for bikers' safety is behind the fund bike
ticketing. "It's time bikers start taking and safety
responsibility for their safety," Pen- ce worksh
dleton said. at the Far
RUNNING A RED light, failing to A few
keep to the right side of the road, and bicyclists
going the wrong way on a one-way failure to
street will carry a fine of $35, according way, disre
to Corbett. Other traffic violations will a passeng
probably cost $20 or less. night.
Pendleton said police will start war- THE EX
ning bikers before the ticketing begins. the regists
Police will run a registration check make up f
for stolen bikes when stopping traffic the Ann A
violators and will impound bikes with tment. By
Students
look for
alternati-vebsy
tNite-Owi
ation. Last January, a new
dinance made bicycle
n mandatory and raised the
0 to $2.50.
NTS MAY BE able to register
t West Quad dormitory later
er, and at other dorms in the
ls said.
n said bikers' registration
de many benefits, helping to
lanes, parking racks, maps,
education. Free maintenan-
ops will be held on Saturdays
mer's Market.
other traffic violations that
may be ticketed for are:
give pedestrians the right of
garding a stop sign, carrying
er, and inadequate lights at
XTRA REVENUE raised by
ation fee hike this year will
or a decrease in funds from
rbor Transportation Depar-
law, the Department must
WRAT AM IIN 1 POV-
FOR? Z goe5ep rMv( EICC-
A NALF A pDOZEN OANKS& 1*50.541A
NOW ABOUT qoQ2 gRED LC1T.
use 1 percent of its state gasoline tax law, because the department pays for
revenue for bicycle concerns. some administrative costs, such as
The Bicycle Division, however, is get- clerk time for registration, Pendleton
ting less than the 1 percent required by said.
By LOU FINTOR
Discontinuance of the "Nite-Owl," a University
late-night bus service, for the spring and summer
terms has pushed some students to search for alter-
native means of transportation.
The shuttle service has been used primarily by
students studying late at the central campus libraries
who need a safe escort to their dormitory. The Nite
Owl became a focus of some students' efforts to im-
prove campus security during the fall and winter
terms, and some student groups persuaded the
University to extend the service hours and route of
the Nite-Owl.
According to University Vice President for Student
Services Henry Johnson, the service is traditionally
curtailed at the end of every academic year due to
limited funds, decreased student utilization, and bet-
ter safety on campus during the spring and summer
terms.
JOHNSON SAID the University has not yet decided
whether the Nite-Owl service will be reinstated in the
fall. He said he is working with representatives from
the Michigan Student Assembly, one of the groups
that fought hard for the service in the past, to deter-
mine if the Nite-Owl service is worth its cost.
But, Johnson added, although it will be difficult for
the financially strapped University to finance the
service next year, he believes the Nite-Owl is cost-
effective and probably will be continued during the
1981-82 year.
While the University decides the fate of the Nite-
Owl service, several campus groups have mobilized
in an effort to establish other late-night transpor-
tation for students.
MSA, WHICH HAS been working on the campus
safety issue all year through its Security Task Force,
has been working with city officials in hopes of
creating an augmented Dial-a-Ride service to ensure
students safe passage home from campus at night.
"The MSA has and will continue to work with the
Ann Arbor Transportation Authority to establish
some sort of late-night subsidized transportation ser-
vices so people can get around," MSA President Jon
Feiger said.
Yvonne Wyborny, an activist with the PIRGIM
Women's Safety Task Force, says that right now the
task force is concentrating its efforts on an all-
encompassing security program. Since November,
the group has also been negotiating with Ann Arbor
Transportation Authority to provide a city-wide, low-
cost taxi service for students. She said such a service
is contingent upon federal funding and probably
would not be available until June or July.
SHE STRESSED that women feel more vulnerable
during the spring and summer terms because of the
fewer number of students on campus, and that the
University must do more to improve campus
security. "I think that people such as Walter Stevens
(University director of safety) and Henry Johnson
See NITE-OWL, Page 18