Iti
Weather
Tonight: Showers likely, low
about 50'
Tomorrow: Cloudy and cool,
high around 600.
One hundredfour years of editorfalfreedom
Wednesday
September 20, 1995
I
Vol. V, - 121
I
Senate panel
to consider
cutting loans
By Ronnie Glassberg
Daily Staff Reporter
The Senate Labor and Human Re-
sourcesCommittee will consider a plan
today that would trim federal student
loan programs by more than $10 billion
over the next seven years - and cost
the University $1.7 million annually.
In a statement, the chairman of the
Labor Committee, Sen. Nancy Landon
Kassebaum (R-Kan.), said she had no
choice but to target the loans.
"The unhappy reality is that achiev-
ing a balanced budget over seven years
requires painful choices," said
Kassebaum, a University alum. "While
I am reluctant to target the student loan
program, it is almost the only manda-
tory spending program under the juris-
diction of the Labor Committee."
The provisions would impose a new
2-percent fee on universities, based on
the value of student and parent loans
made available to students attending
the school.
Associate Vice President for Gov-
ernment Relations Thomas Butts, the
University's Washington lobbyist, said
the fee would cost the University $1.7
million a year.
"That's really a very disappointing
camouflaged tax on students," Butts
said. "What are our options? The Leg-
islature? The state's broke. It's an un-
funded mandate."
The plan would prohibit schools from
passing this fee on to students through
increases in tuition or student fees.
Despite this clause, Ken Tolo, senior
adviser to U.S. Education Secretary
Richard Riley, said students will still
pick up the new cost.
"I would expect that students and
their families would feel the impact.
It's a fee that universities would pass on
to the students, regardless of the prohi-
bition," Tolo said. "The bottom line is
that it is a new fee to the institution that
had not been planned."
The proposal would also cap federal
direct lending programs at 30 percent
- down from the current authority
allowing the Department of Education
to phase in direct lending up to 60
percent of total student loan volume.
The bill would also prohibit new schools
from entering the program.
In the House, Republicans plan to
introduce a proposal that would elimi-
nate the program altogether.
Under the direct loan program, uni-
versities work directly with a servicer
contracted by the Department of Edu-
cation. Under the guaranteed loan pro-
gram, which makes up the remainder of
federal loans, the University had dealt
with 1,400 lenders, guarantors and
servicers in providing federal aid.
In September, University President
James J. Duderstadt sent a letter to all
members of the Michigan congres-
sional delegation urging them to sup-
port the direct loan program. In 1994-
95, the first year ofthe program, 12,000
University students received direct
loans.
All federal loans provided at the
University now come through the di-
rect loan program.
See LOANS, Page 7
JOE WESTRATE/Daily
Painting the Rock
The Rock, at the corner of Hill Street and Washtenaw Avenue, receives several fresh coats of paint almost every week, often by fraternities and sororities.
Investigators question homeless
people in Saturday's Sig Eps
By Zachary M. Raimi
Daily Staff Reporter
The Ann Arbor Fire Department con-
tinued its investigation of the fire that
caused $400,000 in damage to the
former Sigma Phi Epsilon fraternity
house, narrowing the possible perpe-
trators to a handful of homeless people,
officials said yesterday.
"We're attempting to locate two to
five homeless people," said Fire Mar-
shal Scott Rayburn. "I believe they may
have been involved."
Rayburn said he is not sure when the
investigation will be completed.
After the department declared the
fire a possible arson, a $5,000 reward
was offered to anyone with information
about the incident. Rayburn said the
departrment has received a half-dozen
tips, which he said were "very helpful."
Investigators questioned at least one
suspect yesterday.
Rayburn would not discuss what clues
led the investigators to believe that
homeless people caused the fire. "I don't
want to talk about it yet. I don't want
them to skip town." Also, he declined to
discuss any theories involved.
Although most of these clues do sug-
gest arson, Rayburn said, it is still pos-
sible that the fire was accidental.
The department did, however, rule
out student involvement in the fire. "We
just don't have any indication that stu-
dents were involved," Rayburn said.
Sig Eps returned its charter to the
national fraternal organization last fall.
At that time, the fraternity was issued
sanctions by the University's Interfra-
Reward
The Michigan Arson Prevention
Committee is offering up to a;
$5,000 reward for information about
the fire at the former Sigma Phi
Epsilon house. Call 994-4923.
tern ity Council and the national organi-
zation in an incident stemming from a
hazing violation.
it is unu ear how homeless people
got into the house, located at 733 S.
State St. John Alli, president of the
local alumni association of Sigma Phi
Epsilon, which owns the house, said in
a recent interview that he believed the
house was securely locked.
But Rayburn said, "The fraternity
was not as vacant as we were led to
believe."
In a recent interview, Scott Sandler,
an LSA senior and former fraternity
president, said members of the frater-
nity or the house never had problems
with homeless people.
"Sometimes, you might see one
around or collecting cans," Sandler said.
"Like any other kind of housing unit,
homeless people come by."
Rayburn said that arson is not a prob-
L:m in -,non Ardor, compared to other
parts of the state, but that the city has
"had numerous vandalism-type fires
over the last year."
Last November, the Delta Sigma Phi
fraternity house at 1315 Hill St. burned.
Rayburnsaid that homeless people were
living in that house and probably used
the fireplace, which turned into a major
fire.
Diversity focus
of Duderstadt's
address to MSA
T ~
wea
temiy reuns t { V moo C)
By Laurie Mayk
For the Daily
This fall's fraternity rush season is
welcoming more than new pledges to
the Greek system - it also marks the
return ofthe Alpha Theta Chapter ofthe
Delta Sigma Phi fraternity to the Uni-
versity after a two-year absence.
With an old name and new members,
the fraternity's revival has been in the
works since February and the re-formed
group is now in the midst of its first
formal rush.
Frustrated with fraternity choices
during their rush last year, Mike Ingber,
Delta Sigma Phi president, and a few
friends took an alternative route.
"We didn't feel comfortable where
we were rushing," Ingber said. "We
decided to start our own fraternity."
After contacting Terry Landes, fra-
ternity coordinator in the Office ofGreek
Life, Ingber decided to adopt Delta
Sigma Phi, a fraternity ofmore than 100
chapters nationally, including houses
at Eastern Michigan University, Michi-
gan State University, Central Michigan
University; Western Michigan Univer-
sity and Grand Valley State University.
"Delta Sigma Phi was a chapter that
was here before and they never really
closed ... they just sort of fell apart,"
Landes said.
Plagued by organizational problems,
the chapter was down to six members
two years ago, Landes said.
Ingber expressed interest in starting a
fraternity "based on no hazing, based on
leadership, based on community service.
This was an opportunity to get Delta
Sigma Phi moving forward," Landes said.
Shortly thereafter, Scott Rich, cur-
rent expansion director.of the national
Delta Sigma Phi organization, flew to
Ann Arbor to facilitate the reopening
and train the officers.
On Sept. 10, the pledges were initi-
ated and the chapter was officially rec-
By Michelle Lee Thompson
Daily Staff Reporter
When President James J. Duderstadt
addressed the Michigan Student As-
sembly at last night's regular meeting
of the assembly, he emphasized the
changing role of education and univer-
sities in the future- and he maintained
that the University's dedication to af-
firmative action and diversity were im-
portant paths to that future.
In what Duderstadt described as a
"tumultuous political climate," the
University of California recently de-
cided to cut its affirmative action pro-
grams.
With the presentation to the assem-
bly of a University publication called
"Diversity at the University of Michi-
gan," Duderstadt took a stand on the
University's dedication to affirmative
action policies.
"I hope this University does not do
like the University of California, but
rather reaffirms the commitment to di-
versity we've made," Duderstadt said.
MSA Vice President Sam Goodstein
applauded Duderstadt's stand.
"It's very commendable thathe's staked
his reputation and his job on something
important like this, especially with the
trends aroundthe country,"Goodsteinsaid.
Duderstadt said, "What I'm trying to
do is empower more people throughout
the University to drive the University
into the 21st century."
However, members of the assembly in
a question-and-answer session with
Duderstadt and Vice President for Stu-
dent Affairs Maureen A. Hartford ex-
pressed more interest in student issues
including out-of-state tuition and the Ath-
letic Department's contract with Nike.
LSA Rep. Jonathan Winick asked
Duderstadt, "Since you represent the
State of Michigan and the regents do
too, who's out there fighting for (non-
resident students)?"
"The fact is, that for out-of-state stu-
dents, the University is a private insti-
tution," Duderstadt responded, refer-
ring to the differential between resident
and non-resident tuition.
Engineering Rep. Bryan Theis asked
Duderstadt and Hartford - who was
wearing a "Swoosh" logo sweatshirt at
last night's meeting - if the Nike con-
tract would set a precedent for the Univer-
sity to forge more deals with industry.
"Every other college team in the coun-
try has a similar licensing agreement,"
Duderstadt said. "The question is where
to draw the line in the sand."
Goodstein said of Duderstadt's and
Hartford's presence at the meeting, "I
think it's important that they get a chance
to hear some of the concerns of the
MSA representatives."
Inside: MSA names new external
liasons. Page 7.
Sophmores Kevin Fisher (left), Mike ingber (second from right) and Mike
Khomutin (right) talk to Scott Gersch, a first-year rushee, last night.
ognized by the Interfraternity Council.
Now at 42 members, the fraternity is
hoping to grow.
"We're looking to expand, to get
good quality guys with leadership skills.
We really don't have a set number in
mind," Ingber said. "(We're looking)
for people who are willing to build the
fraternity and mold it into what they
want it to be."
Participating in its first rush sea-
son, Delta Sigma Phi has made efforts
to get its name known among poten-
tial pledges. The fraternity hosted a
stand handing out more than 1,000
"munchkin" donuts and 500 bagels at
one of the season's first football
games.
New nasal spray may
prevent common cold
Senate passes dramatic welfare changes
The Washington Post
WASHINGTON - The Senate endorsed a dramatic
transformation of the nation's welfare system yesterday,
adopting legislation to end the 60-year-old guarantee of
billion over seven years.
A House-Senate committee must reconcile the Senate bill
with a version approved by the House in March. The House
measure contains more restrictions on welfare benefits;and
CAN FitANCTfiCf) (API -__ Qrv_
my off with strateLyies that may at last
s ttt 5