at orors the hole
Student loan act . . .
From page one
dropping out of the FISL program, according to left Weinberg, associate director of the FISL program.
"THERE IS AN INCREDIBLE amount of red tape the government requires of FISL lenders," he said yesterday. "And, after all, it is not a government institution. It has to make a profit."
In fall 1974, 1,062 KU students received FBL loans. The interest on the loans is seven per cent and that interest is paid by general government if the applicant munifies.
To qualify for an interest-free FISL loan, a family's adjusted gross income must be less than $15,000. The adjusted gross income is derived by subtracting 10 per cent of the gross family income, and then subtracting 20 per cent of the gross income multiplied by $750. After the student graduates he can take as much as 10 years to repay the loan.
LAST MONTH, THE LAST two Lawrence banks participating in the FISL program, First National Bank of Lawrence and Trust Co., dropped out of the program.
"We used up the funds that were originally allocated," Bill Terry, commercial loan officer for First National, said. That amount was $350,000, he said.
But the demand was much greater than the funds and anticipation for new buildings are offering FHLMs.
"Terry a home-town lending program," Terry SID. "We felt we had to lend to the Lawrence students first. And if every student would makeate, there would be plenty to go around."
But because other banks don't parapete, fewer students can get loans, he said.
FIRST NATIONAL *WON'T* consider new
firsts until next spring he said, and FISL's
future is on the line.
Kernit Clark, assistant vice president of Lawrence National Bank, said that Lawrence National couldn't offer new FISL loans for at least two years.
Last year, $400,000 in FISL loans were made. he said.
"The major problem is that we have such a high demand," he said. "And one of the reasons for it is that we are doing it."
Douglas County State Bank dropped out of the FISL program three years ago, according to Joe Kelly, vice president of the bank.
there aren't enough home-town banks in the program."
"WE JUST HAD MORE money in student loans than we could afford." he said.
The bank lent about $250,000 under the FISL program, Kelly said, adding that was too much money to be tied up for a long time.
There are incentives for banks to make secure loans, Winberg said. One is the facility.
The only way Douglas County State Bank will make more FIIS loans, he said, is a group that will do all the paper work and collect payment of the loans can be hired. The bank is now discussing that possibility, although that prospect isn't very likely.
UNDER THE SPECIAL allowance, a bank can receive more than the maximum seven per cent interest rate. The federal government can give the lending bank a maximum extra of three per cent interest on the loan.
Both Terry and Clark estimated that the
special allowances to their banks would be about one and one-half per cent, bringing the total interest on the loan to about eight and one-half per cent.
But, Terry said, even with the special allowance, an FISL loan was "at best a break-even deal." Because extra staff is required to handle the paper work on FISL loans, the special allowance doesn't make much difference. he said.
THE STUDENT LOAN Marketing Association, nicknamed "Sailie Mae," is another attempt by the federal government to attract more popular with banks. Weinberg said.
A public holding corporation, "Sallie Mae" buys the loans from the banks, Weinberg said, so the banks "can clear the water and start over again" making new loans.
But more incentives are needed, Weinberg said, especially since there is governmental pressure to eliminate the National Direct Student Loan Program (NDSL).
NDSL federal grants have been the "bread and butter" funds of financial aid offices, Weinberg said. In fall 1974, 12,836 students were given to 1,852 KU students.
FDA evaluating over-the-counter drugs
By SARA HOLLAND
Over-the-counter sleeping pills and stimulants keeping government mental health.
Staff Writer
The Food and Drug Administration (FDA) is evaluating 17 categories of over-the-counter drugs, Lorenna Meyers, consumer affairs officer for the FDA, says
Meyers said that stimulants and non-prescription sedatives were included in the study.
Last month two physicians testified to the Senate Small Business Committee on Monopoly that nonprescription sedatives could have harmful side effects, excess, could have harmful side effects.
THE TWO PHYSICIANS specifically said
Sominex, Nytol, Compoz, Sleep-Eze and Excedrin Pm were ineffective sleeping sedatives. The physicians criticized both the drug and the advertisers that promoted it.
Carlton Erickson, professor of pharmacy and a member of the FDA panel that evaluated sleeping aids, tranquilizers and stimulants, said most over-the-counter medication is not effective because they contain enough active ingredients to make them effective.
"The pharmaceutical industry has placed more emphasis on the safety of the pills than on the effectiveness of the pills," he said.
THE PANEL, THE REPORT, according to Erickson, is subject to change without notice.
County commission grants proposed children's home
A similar permit was denied to the Villages last summer because the commission had failed to reach a unanimous vote on the issue.
Douglas County commissioners voted 2-1 yesterday to grant Villages, Inc., a proposed home for dependent and neglected children. The county also approved 41-acre tract of land south of Lawrence.
However, Frank Gray, District Court Division 1 judge, ruled in a court decision last week that a two-thirds majority was sufficient for approval.
Stoneback said yesterday he thought those people were more important than the landowners from whom the property is being purchased.
I. J. STONEBACK, WHO was the only commissioner to vote against the original proposal, cast the only dissenting vote in yesterday's action. Stoneback voted against the proposal because 20 per cent of area had been Pleasant Valley had protested the location.
The letter stated there was enough evidence to support those findings and recommended that the conditional use permit be issued.
Daniel Young, county counsel, said in a written statement to the commission that he thought there was protection of surrounding property, persons and neighborhood values, in addition to ample off-street parking at the proposed location.
DICK McCLANATHAN, DIRECTOR of the Lawrence-Douglas County Planning Commission, was at yesterday's meeting at request of the commissioners to offer his advice.
He said the court ruling last week showed there was nothing in the state statutes that required unanimous approval for conditional use permits.
The county commission could perhaps adopt its own policy requiring unanimous approval of such permits, he said, but at the present time all the commission could do
was accept Young's recommendation to issue the permit.
Stoneback made a motion to appeal the court to the Kansas Supreme Court, but his counsel insisted that he was innocent.
COMMISSIONER PETE WHITENIGHT then moved that Villages be issued the permit and Arthur Heck, commission chairman, seconded.
"Some of the sleeping aids contain scopolamine and bromide which my panel insisted," he said. "Bromide has been used to treat epilepsy, but rash similar to acetate when taken in excess."
About 10 Pleasant Valley residents who had protested the Villages' site were informed yesterday that two-thirds of the residents were needed to protest the action.
Ericson said some people had their own idiosyncrasic reactions to sleeping aids. He said sleeping pills were totally ineffective and they could not help people and some were merely "placebabs."
One woman suggested that perhaps the commissioners had been "bought and paid for."
"I resent that," said Heck. "No one on this commission is bought and paid for."
recommended that some of the ingredients of sleeping cells be taken off the market.
WHITENIGHT SAID HE also represented any idea that the commissioners were "wrong."
Lance Burr, Douglas County project director for Villages, Inc., said he could estimate when construction on the two children's cottages would begin.
"It's unfortunate that you had to convince two out of three of us and it wasn't done," he said. "I think there's a great need in our community for this (villages' project). There are benefits in human terms and it is hope and faith that that's the case."
HE SAID THAT WEATHER was a factor and that the group needed to get some finances together because some of its funds had been depleted. Approval of a permit is also needed from the State Board of Health for a sewage lagoon, he said.
His panel had recommended that, unless pharmaceutical companies could prove within three years that the ingredients in the products are safe, ingredients should be taken off the market.
no one did anybody any favors," he said. "I've always felt that cottages on 41 acres aren't violating anybody's rights. The county is itself beneficial to Douglas County."
Burr said that it was good to hear of the county board's decision, but he added that "I don't know" if he knew.
HE SAID HE THOUGHT at least half the ingredients would be taken off the market. Erickson said that his panel had agreed that stimulants were safe and acceptable.
Meyers said she had received a rough draft of a report that would be presented to the FDA commissioner in September 1976 for agency consideration.
"The main ingredient in stimulants," he said, "is coffee. A typical stimulant tablet is 100 milligrams."
"The REPORT STATED there was insufficient data to permit the following labeling claims by manufacturers of daytime sedatives for relief of occasional pain, irritability, nervousness from everyday overwork and fatigue," she said.
According to the draft report, nighttime sleep aids and daytime sedatives contained ingredients that the panel considered irrational.
There also was insufficient data to permit the assertion that sleeping pills could be used as a calmatic to cause a relaxed feeling.
SHE SAID THE FDA had recommended that manufacturers' label assertions be limited to prescribing use for the temporary relief of drowsiness and that they include a warning that caffeine wasn't a substitute for normal sleep.
According to an FDA memo, Meyers said, the use of caffeine wasn't a substitute for normal sleep. The stimulants merely mask mental and physical fatigue.
Meyers said that caffeine had been rated as effective as an ingredient for over-the-counter headaches.
"A cup of coffee with 90 milligrams of caffeine, and the usual stimulant tablet"
Warren Sauder, drug investigator for the FDA, said that most sleeping aids were developed in the 1960s.
"Sominex is made up of three ingredients called scopalimine, methatyrilamine and salicylamide," he said. "Side effects of the pill included excessive drowsiness, dizziness, dry mouth, headaches, nausea, and a possible high fever if overused."
John McBride, consumer and protection specialist for the Federal Trade Commission (FTC), said the FTC had recently issued a trade regulation for over-the-counter drugs.
"SEDATIVES AND STIMULANTS are included under the rule," he said. "Any over-the-counter drugs would be prohibited from making any claims in advertising which aren't permitted in labeling by the FDA."
McBride said the proposed rule would go into effect as soon as the FDA had finished reviewing it.
Lawrence pharmacists and students had various reactions to and opinions about over-the-counter sleeping aids and stimulants.
One Lawrence pharmacist, who declined to be identified, said that she usually advised people not to take sleeping medications because they could be habit-forming. She said people didn't have a chance of sleep when they took sleeping pills.
Gary Roberts, Lawrence pharmacist, said he'd heard some people complain about the ineffectiveness of over-the-counter medication, but they were buying them if they didn't work for them.
ROBERTS SAID HE DIDN'T think the
requestor didn't like to
recommend them to customers.
Bill Beeler, Lawrence pharmacist, said he also sold more stimulants like Nodex and Cocaine.
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