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July 29, 1982 - Image 1

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Michigan Daily, 1982-07-29

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The Michigan Daily
Vol. XCII, No. 50-S Ann Arbor, Michigan-Thursday, July 29, 1982 Ten Cents Twelve Pages
MORE THAN 500 COLLEGES TO LOSE FUNDS
Feds crack down on loan defaults

WASHINGTON (AP) - Education
Secretary T. H. Bell yesterday barred
more than 400 colleges and trade
schools from receiving further federal
student-loan money on grounds their
default rates exceed 25 percent.
The University of Michigan, however,
wad not one of those schools.
As part of the largest such crackdown
ever, more than 800 other schools were
targeted for reduced funds.
BELL, responding to recent
congressional criticism over loan
collections, also said he will intensify
efforts to track down defaulters and
launch a computer search for
defaulters among 10.3 million current

and retired military and civilian
federal workers.
Most of the institutions barred from
receiving new National Direct Student
Loan (NDSL) funds, based on their
cumulative default rates as of June 30,
1981, are trade schools and dozens are
beauty colleges.
The list, however, also includes such
academic institutions as Miami-Dade
Community College in Florida, the
nation's largest community collee.-
Glassboro State College in New Jersey;
and Alabama State University in Mon-
tgomery.
Bell originally said 528 institutions
were ineligible for new funds under a
regulation he signed yesterday, and his

department released a list naming all
528.
AN AIDE SAID later, however, that
92 of schools have successfully
appealed to stay in the program. Jim
Moore, the department's director of
student financial assistance, said that
by mistake, the list Bell gave out "had
not been purified yet." He added he
would be unable to name until today the
92 schools whose funds will be con-
tinued.
Moore said the 92 schools got below
the 25 percent default cutoff in a variety
of ways. Some were allowed to recom-
pute their default rate as of last
January instead of June 1981, he said.
Others got below the cutoff because

they transferred bad debts to the
government for collection or provided
evidence they had sued the former
students, he said.
IN ADDITION, he added, colleges
were allowed to exclude from their
default rates loans made prior to 1972.
"We're aiming in particular here at
the private proprietry for-profit schools
. Bell told a news conference,
calling their default rates "appalling."
In addition to the schools named for
cutoff, more than 800 other institutions
will get less than their full share of the
$178 million in NDSL funds the
Education Department expects to send
See FEDS, Page5

New deadline
set for PLO
evacuation

By The Associated Press
Israel set a new deadline for the PLO
to leave west Beirut and hammered the
guerrillas from the land, sea and air
yesterday, then agreed to the Reagan
administration's latest appeal for a new
cease-fire.
Lebanon's state radio said in its 11
p.m. newscast that "the shelling is.
starting to get lighter and the situation
is becoming relatively calm" after 90
minutes of intensive artillery and
rocket barrages. The midnight
newscast reaffirmed that reports, and lit-
tle firing could be heard from
Associated Press headquarters in west
Beirut.
AN ISRAELI military spokesman in
Tel Aviv said the cease-fire took effect
as scheduled at 10:30 p.m. and was
holding nearly two hours later.
Moshe Yegar, assistant director-
general of the Israeli Foreign Ministry,
announced the new truce following a
declaration by the Reagan ad-
ministration that "the bloodshed must
stop."
He said Israel would abide by a
requst from U.S. presidential envoy
Philip Habib to observe a seventh
cease-fire in Beirut "if the other side
holds its fire."
THE PLO's response to the cease-
fire appeal was not immediately
known. No one answered the telephone
when The Associated Press called the
PLO information office. The Voice of
Palestine radio made no mention of a
cease-fire before signing off as
scheduled at9:45 p.m.
After the collapse of the sixth cease-

fire, Israeli Defense Minister Ariel
Sharon said the Cabinet had approved a
new policy of "static fire," which he
said meant shooting at Palestinian
positions without responding in-
dividually to each Palestinian attack on
Israeli forces.
Israeli Prime Minister Menachem
Begin said Habib told him he would
seek an "unequivocal commitment"
from Yasser Arafat's Palestine Liber-
tion Organization to vacate west Beirut.
Begin said Habib would have the PLO's
answer by tomorrow.
THE ISRAELI leader said he told
Habib such a commitment was
necessary to stop the 35,000 Israeli
troops and 300 tanks surrounding the
Lebanese capital's Moslem sector from
wiping out the 8,000 guerrillas trapped
inside.
Habib returned to Lebanon from
Jerusalem, capping his weeklong shut-
tle in the Middle East and Europe
seeking new ways to evacuate the PLO
from Lebanon.
In Washington, State Department
spokesman Dean Fischer said, "It is
the source of the greatest possible
regret to us that many innocent people
have been killed and wounded as a
result of the breakdown of the cease-
fire in Beirut. Ambassador Habib is
currently engaged in trying to restore a
cease-fire, which not only would spare
lives and property damage, but would
also permit headway in political
negotiations.. We call on all the com-
batants involved to reinstate the cease-
fire in place. The bloodshed must
stop."

Daily Photo by ELIZABETH SCOTT
Cop ycat
Local artist Michael Curtis uses one of the panthers g-.arding the University's
Museum of Natural History as a handy model yesterday.

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