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.