Page 6-Saturday, August 1, 1981-The Michigan Daily
ONLY REAGAN'S SIGNATURE NEEDED TO REDUCE SPENDING

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Financial aid affected by budget
BY MARK GINDIN requires that a student receiving a Loan Program, which currently has a Augsburger said. "It has mushroomed
Daily staff writer GSL pay five percent of the loan im- $186 million budget, will have $100 lately," and the moves are designed to
Congress yesterday approved mediately to the lender to cover expen- million added to it for the 1982-83 school regulate the growth.
President Reagan's new federal budget ses. year because of the bill, and that level The effective date of the new
which calls for reduced spending in Another change in student aid is that will be maintained for the two following program changes will "work in dif-
almost all areas - including student the Pell Grant program will no longer years. The interest rate will also rise to ferent ways for different programs,"
inancial aid. be "allowed an unlimited funding," five percent after Oct. 1, Augsburger according to Augsburger.
The major issue of the. financial aid Augsburger said. Specific authorization said.
package in the new budget, according levels for the coming years will be set The Parental Loans for Un-

to Jerry Augsburger, the University's
Associate Financial Aid Director, is the
$30,000 income level cap for the
Guaranteed Student Loan. All applican-
ts with an adjusted growth income level
above $30,000 will have to face a needs
test, Augsburger said.
THE FINANCIAL aid package also

by the Department of Education. The
present limit is $1,670 for the 1981-82.
academic year.
The Supplemental Employment Op-
portunity Grant and the Work-Study
program, however, will remain at their
present levels.
THE NATIONAL Direct Student

dergraduate Students will be expanded
to include graduate students, indepen-
dent students, and their spouses, but
the nine percent interest rate will rise
jo 14 percent.
The new restrictions are designed to
reduce the huge volume of money spent
on student financial aid each year,

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Congress
finalizes
budget
( Contined fromPae 1)
minimum Social Security benefit that is
eliminated in the budget measure.
Both sides admitted the move was
strictly symbolic, since the Republican-
controlled Senate is not likely to take up
the separate measure. Thus, the
minimum benefit, as things now stand
still is scheduled for elimination next
year.
"WHAT THEY got is one more shot
before they go home, with a BB gun,"
said Sen. Robert Dole (R-Kan.), who
runs the Senate Finance Commit-
tee-where the House Social Security
bill is expected to languish.
.Both the $35 billion reduction in spen-
ding and the tax bill, estimated to cost
$750 billionover the next five years,
were easily the biggest in history.
AND PASSAGE of the two bills
signaled a major shift in the role of
government, which had been taking on
more and more respensibilities since
Democratic. President Franklin
Roosevelt unveiled his New Deal plan
to pull America out of the great
depression.
Tax eut
sent into
committee
From~ AP and UP
WASHINGTON-The Senate gaveits
formal approval to President Reagan's
mammoth tax cut proposal yesterday,
clearing the way for final congressional
action and presidential signature next
week.
As expected, the Republican-
dominated Senate approved its version
of the biggest tsx cut in U.S. historyby
voice vote and began making plans to
iron out differences with a nearly iden-
tical House measure approved Wed-
nesday.
THE MOST important parts of the
bill-a three-year, 25-percent, across-
the-board cut in personal tax rates and
a hefty reduction in business
taxes-won't even be discussed by the
House-Senate Conference committee.
They are the same in both versions and
are already locked into the bill.
The bill was agreed to on a voice vote.
The Senate had endorsed the measure
by an 9-11 vote on Wednesday, the
same day it was approved in the House
by a 23-195 margin.
Congressional aides listed at least 16
major differences and numerous minor
provisions tha must e om aromised
beforecthe-bill an.bteeplav

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