The Michigan Daily - Friday, June 6, 1986 - Page 11
U.S. seeks
loan defaulters
By AMY MINDELL
with wire reports
The federal government has begun
cracking down on students who fail to
pay back loans to the government,
using what one government official
called "various and sundry ways."
One method surprised thousands of
student loan defaultors who had ex-
pected to get tax refunds in the mail.
Instead, they received notices from
the Internal Revenue Service saying
the money will be withheld to repay
their student loans.
THE PROGRAM is part of a larger
federal crackdown on other gover-
nment loans - including farm loans.
Although five federal agencies
benefitted from the plan, the biggest
chunk netted thus far has gone to the
Daily Photo by ANDI SCHREIBER education department. The depar-
Alpah Epsilon Pi and Triangle fraternity rush banners hang in the Diag last September. This September, the tment has received $116 million.
number of banners in the Diag will be limited to three at a time, due to a mandate by the Office of Business "This collection is something of
Operations. vindication for those nine of 10 student
loan recipients who do repay their
loans on time, in full," said William
Bennett, director of the education
Diag Banners limited to three department_
Stu1dent if
The payback rate at the University
is higher, at 93 percent, according to
Harvey Grotrian, director of the Of-
fice of Financial Aid.
THE AVERAGE debt collected af-
ter the program was put in place has
been $544 per debtor. The largest debt
was from a $9,600 from a student loan,
by a Washington D.C. doctor.
In addition to repayments through
the IRS plan, James Miller, director
of the federal Office of Mangement
and Budget, said 50,000 people have
voluntarily repaid debts to avoid con=
frontation with the IRS.
Miller said the program shows that
the government is serious about
collecting. "You can run, but you
can't hide," he said at a press con-
ference earlier this week.
"CONGRESS IS giving us more
power to get payment on deliquent
loans," said Bob Jamroz, an official
at the U.S. education department and
a specialist on financial aid and
student debt.
Iebtedness
(ContinuedfromPagei 1
according to Jeff Kolodisa, a senior
and a member of Michigan Adver-
tising Works. He speculates that
placement will remain on a first come
first serve basis.
Although Horne and Kolodisa
acknowledge that there have been
past problems with groups who didn't
register their banners, who didn't
take them down in due time, or who
hung them improperly on the trees,
Horne feels that other possibilities
could have been considered. "Maybe
if the student groups put down a
deposit, then they might be more
responsible for the placement and
management of their banners," she
said.
"Freedom of speech has to be exer-
cised with responsibility," said Fred
Meyer, University Planner. "It's been
Applicatiot
- I
approved because the banners have only last Friday. According to
been endangering students and the Prasad, they are waiting to obtain
trees, he added. more information before they react w orries olieiais
with any resolutions orstatements.
The statement is not a proposal or a continued from Page4 the family's income, family size, and
plan, but an already decided policy. Kolodisa feels that the 'U' is actively participate in the economy. number of children in college. Then
Violating student organizations will following other universities by 'im- "Many young adults are graduating we look at national education
be charged $25 by the Grounds Depar- plementing more control mechanisms with thousands of dollars in loans and association tables and calculate
tment to cover the expenses of upon students." "How can so many can't pay them back. You have to whether the student can get a loan,"
removal. years of banners be ended so work many years to pay off the loans Grotrian said
quickly?" he asked. before you can do other things with Grotrin said automatic eligibility
"Banners give the Diag a certain Russel Reister, the director of Plant the money, like buy houses, cars and may be removed in the near future,
Banersgiv te Dag crtan Rssl Ristrthedirctr o Plntluxuries," Christensen said. but this wouldn't affect University
spirit and life...the feeling that people Operations, was not surprised to hear Another dispunt sas bered students because other forms of aid
are doing interesting things," said that many students feel their rights Another suther students should sre ea se or foms faid
Eric Schaufer, a law student andben thaeed "Isoud e aroudwehrsuet hudae available for low income families.
memer ofthever, unc. being threatened. It should be receive free grants for college, with Solutions for solving the student
member of the University Council. remembered, though, that there are no payback required. debt problem includes indebtedness
plenty of billboards," he said. Jamroz said he favored grants over counseling, increased employment on
"It's either an administrative blun- "Although at times the banners get loans, except for low income campus provided by the University,
der or an attempt to sanitize th to be too much, I feel that its better to families-under $18,000 per year-for or various pre-payment plans.
Diag," Schaufer said. The U' a family of four. Grotrian said University officials
definately want to regulate political bring events to attention and keepthe BUT GRANS said it is more dif- areoin i n o ii
expression," he continued. students informed," said Klaus Tap- ficult for a middle-income student to units." Under the plan, tuition, for
MSA was informed of the new policy the German House. get through college, than a student example, could be sold in 100 units,
from a poor family, with the $20 units accessible for gifts
"The people being hurt are those during the student's life. Tuition
whose parents are 'rich' on paper, but would be frozen.
zs to LS increase : ain really have other expenses to pay, like
other students in school. It's almost
(Continued from Pages) better if you are destitute than middle
optimistic about the prospects for State. He said that choosing a college "increasing awareness that the bet" are si
University recruiting. He said the is a family decision and such highly- University is offering a very good ce he sad g
Sine 900 te fdealgovernment
Great Lakes area has been hit hardest publicized incidents as the MSU dor- education for the price. There is a has increased restrictions on student
by population declines since the late mitory fire and a pornographic film research excellence here comparable loans. Students now must be from
1970s, and Michigan has been the har- recently made by students have hurt to Ivy League schools." families making' under $30,000 to
dest hit of the Great Lakes states. the school's recruiting image. Both Montgomery and Donahue automatically qualify for a loan, and
Despite this drop, he points out, the MSU remains the University's said recent books which rated the all others must be checked by finan-
University has still seen record num- biggest competitor for in-state University highly and described it s cial aid offices.
bers of applications. students, said. Donahue. Nationally, a "public Ivy" had been helpfu. "SINCE 1980 we have had to check
"We're bucking that trend," said the University competes with North- The University has also recruited S
Sjorgren. "This University is in as western, the University of Pen- far more actively in recent years.
good as a position as anybody in the nsylvania and the Ivy League schools Donahue said Michigan was "a 0WU10 $L!JtGt
country to meet the problem." because many students who end up at sleeping giant" six or seven years
DONAHUE attributes the Univer- Michigan also applied to those ago; the admissions office was not Professional * Experienced
sity's success to good publicity and schools, he added. doing a lot of things it could have. NO WAITING!
active recruiting. University sports, Mathematics Prof. Hugh Mon- Now, he said, "we're working as hard
student activities, and the state's im- tgomery, a member of the LSA Blue as we ever have." DASCOLA STYLISTS
proving economy help the Univer- Ribbon Commission established in
sity's image, he said. part to deal with the demographic "We're after the very, very, very Maple Village ....... 761-2733
Donahue contrasted the Univer- problems facing the University, said good student," said Donahue. "So is liberty off State ..... 668-9329
sity's image with that of Michigan the recent increases were due to an everybody else."
FIRST PRESBYTERIAN
CHURCH
1432 Washtenaw Ave., 662-4466
(between S. University and Hill)
Sunday 9:34 and 11:00 a.m.
Coffee Hour -10:30 Social Hall
Adult Education Classes during both
services.
Campus Group: Coordinator -
Jamie Schultz.
Meets for Bible Study 7 p.m.,
Wednesdays.
Dr. William Hillegonds - Sr. Minister.