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Stafford Loan Program could be in jeopardy
(CPS) - The apparently
imminent collapse of one of the
most important players in the
system that gets college loan
money to students probably
won't affect students' ability to
get loans this year, various
observers say.
"There's no need for real
concern,” said Dan Goyette,
financial aid director at Marquette
University in Wisconsin. "We're
all feeling secure about the short
term.”
Goyette, however, added the
financial crisis at the Higher
Education Assistance Foundation
(HEAF), which is the nation's
largest guarantor of student loans,
has him worried about the "long
term solvency of the Stafford
Loan Program."
One campus aid official says
HEAFs troubles already have
caused some banks, which
ultimately lend college money to
students under the guaranteed
student loan program, to shy
away from making new loans.
"We have had some banks that
have expressed concern and
chosen not to do loans anymore,"
said Mary Wildeman, a loan cleric
at Fort Hays State University in
Kansas. "It is a problem for us,
but at this point, we're just
waiting."
Are you
in being
Government?
Positions
Freslhmiuin
2
3
FRESHMAN SENATOR ELECTIONS*
Tuesday September 11
Wednesday September 12
from 10:00 to 3:00 both days in the
lobby outside the mailroom
COMMUTER SENATOR ELECTIONS*
Attend the SGA meeting
Wednesday September 12,
5:30 p.m. in Rll6
To get more information stop by SGA
office or call Ted Hacker at 898-6220
’"You must be a full time student to run
for these positions. You must be a
Commuter for the Commuter Senator
and a Freshman (Commuter or Resident)
for the Freshman Senator positions.
The vast majority of the 4
million students who will take
our Stafford Loans to pay for
college this year already are
assured of getting their money,
aid officials note. Any problems
that might arise would not affect
students, at least until next year.
"Cautiously Optimistic"
The crisis began in July,
when HEAF executives told the
U.S. Department of Education,
which oversees most federal
college programs, that HEAF did
not have enough cash to
reimburse banks when students
fail to repay loans.
Campus officials feared that if
banks lost confidence they would
be reimbursed for defaulted loans,
they would simply stop making
student loans.
Student loan administrators,
however, swear the loan program
is in no danger.
"Nobody's going to lose
money," said Dallas Martin, head
of the national Association of
Financial Aid Administrators,
headquartered in Washington,
D>C> "We feel very comfortable
that the program will go
through."
"We're cautiously optimistic
interested
a part of
Student
open:
Senators
The Collegian
that banks won't lose any
money," added Fritz Elmendorf of
the Consumer Banking
Association (CBA), a frequent
critic of the Education
Department's management of the
student loan program.
For now, federal officials are
hoping a $2OO million loan from
the government-sponsored
Student Loan Marketing
Association to HEAF will keep
the agency, the largest of SS
guarantee agencies in the country,
afloat.
When The $2OO Million
Runs Out
The loan should carry HEAF
into October, said Education
Department spokeswoman Etta
Fielek.
"We're pleased with this
Women find "rugged but cuddly" best
BOSTON (CPS) - In a
compilation of answers from
women at Elmhurst College in
Illinois and at the universities of
Georgia and Louisville, three
sociologists told an American
Psychological Association
conference Aug. 13 that campus
females think men who look
"nigged but also cuddly" are the
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Leadership Retreat
September 14, 15, &16
1 For more information contact:
I David Mahoney @ 898-6452
I or Student Activities @ 898-6171
* A LIMITED NUMBER MAY ATTEND FOR FREE.
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arrangement because it provides a
stable period during which
negoiations can continue," Fielek
said.
Yet no one is sure what will
happen when the $2OO million
runs out.
HEAF, a private, non-profit
agency based in Overland Park,
Kan., has the $5l billion student
loans outstanding nationally.
Exact figures on just how
much HEAF owes banks for
loans that students haven't repaid
aren't available.
Education Undersecretary Ted
Sanders did tell the Senate
Banking Committee in July 27
that bailing out HEAF would
cost about $lOO million.
"Drastitic Cutback On
Student Loans"
most desirable.
"The most attractive male
face was intermediate rather than
extremely mature or baby
faced," said sociologists Michael
Cunningham and Anita Barbee
of the University of Louisville
and Carolyn Pike of North
Carolina State University in a
summary of recent research into
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Thursday, September 6, 1990
If the department ultimately
has to give HEAF the cash to
reimburse banks, students can
expect a "drastic cutback on
student loans," warned Leo
Hattan, outgoing financial aid
director at Eastern New Mexico
University.
"I think this is probably, on a
small scale, another S&L type
ripoff," Hattan added, referring to
the $5OO billion federal bailout of
savings and loan institutions that
lost money in part by lending
money to people who did not
repay them.
HEAF admitted its problems
mostly stemmed from making
"bad" loans to students at for
profit trade schools.
The Education Department
also is considering letting another
guarantee agency take over
HEAF.
what kind of men college
women like.
In the studies, women
associated features like round
faces, thin eyebrows, large eyes
and thin noses with
"babyishness." They associated
features like angular faces, large
smiles and visible beard stubbie
with "maturity.”