Official reflects
on aid changes

The Michigan Daily-Wednesday, August 12, 1981-Page 9
Officials maytrim grants
for private school students

(Continued from Page 5)
after the president signs the budget bill,
Butts said.
A NEW LOAN program, dubbed
ALAS, designed to benefit those who-
cannot find another source of cash to
pay for an education was created, Butts
said. (See story, Page 1.)
Of the students who will have to un-
dergo a financial needs test for a GSL,
"there will be a number who will still
qualify," Butts said.
Entitlement programs, such as GSL,
are the major reasons federal-officials
have been unable to control the federal
education budget during the past years,
Butts said. "This concerns me because
if one untargeted program is able to
control the budget, money for targeted
programs, such as the Pell grants, will
suffer greater erosion," he said.
FOR INSTANCE, the, Pell Grant of
each recipient will be reduced by $80
this year because of the costs incurred
by other programs, Butts said. About
2.7 million grants nationwide will be af-
fected by the reduction, he said.

Higher education has not seen the
worst case of what could have hap-
pened in the quest to cut the budget,
Butts said, but it hasn't seen the pace of
appropriations keep up with inflation,
either. Anytime the budget is not in-
creased, it is actually a cut because of
inflation, he said.
It will be some time before we see the
results of the administration's actions
this year, but "my head is still spin-
ning" from all the changes, Butts said.
ULTIMATELY, Butts said he doesn't
predict that students will be adversely
affected this year. "While there will be
a little pain, it will still be tolerable," he
said.
Butts noted that the University has
expanded its own student aid fund along
with the rise in tuition. "I don't know of
a public institution that has committed
as much of its own resources to student
aid as the University of Michigan,"
Butts said.
"Planning will keep the University
one of the greatest institutions in the
world," he said.

LANSING (UPI)- Officials said
Monday they may trim tuition gran-
ts for private college students in a
bid to ac'ommodate more than 900
eligible applicants turned down due
to a lack of funds.
The state's tuition grant program
was forced to turn away eligible
students for the first time in its 15-
year history this summer because of
a rising tide of increasingly needy
applicants and the failure of state
appropriations to keep pace with in-
flation, said Ronald Jursa of the
state Education Department.
THE MICHIGAN Higher
Education Assistance Authority is
being asked to approve a $50 reduc-
tion in the roughly 17,000 grants that
were awarded, which would enable
the state to provide aid to the
roughly 935 students who were rejec-
ted.

Jursa said he does not expect
current recipients to be happy about
the reduction, but believes they will
support it.
He noted other aid programs, in-
cluding competitive scholarships for
public colleges, also are being pin-
ched financially.
UNDER THE tuition grant
program, needy Michigan students
attending private colleges are
eligible for grants of up to $1,300 or
actual tuition costs, with the actual
award depending on their financial
circumstances.
This year, however, officials were
forced to limit the program to the
17,000 neediest applicants because of
a limited legislative appropriation.
Funding was up about $200,000
from last year at $13.9 million-far
short of the increase in college
tuition charges and other costs.


DAILY CLASSIFIEDS

(Continued from Page 8
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