ere it s of hospital physical Friday, February 15, 1974 University Daily Kansan 2 More Loans to Students Aim of Bill By JIM KENDELL Kansas Washington Correspondent WASHINGTON-Help for beleaguered middle-income students and their parents may be on the way. The House Special Subcommittee on Education is holding hearings this week on a measure that would eliminate on July 1 the needs test, an analysis of family history, for guaranteed loans to students whose parents make less than $20,000 a year. Congress instituted the needs test last March 1 in an effort to choke off the rising default rate on student loans. In 1973 the government covered $46.6 million in defaulted loans, $86.6 million this year and $115 million for next year. But the needs test had the unexpected side effect of making it impossible for many families in the $10,000 to $15,000 income bracket to send their children through school because they couldn't get guaranteed student loans. If the needs test shows that they need help, the government will insure a loan to help them. "The most critical single problem is the default rate," said Ed McAbe, a director of the Student Loans Marketing Association, during the hearings yesterday. The association will hold student loans from 1972 to purchase and temporarily hold student loans made by private lenders. The U.S. Office of Education estimates that from 1988 to 1975 the gross default rate on guaranteed student loans will be about 4.3 per cent. Opponents of elimination of the needs test content that this would only lead to more defaults. "No program can survive if the default rate is over one per cent," McAbe said. Before 1985 the default rate on student loans was set at 20%. Purdue, Purdy, director of financial aid at the University of Missouri, told the subcommittee. Purdy said that under the same rules and administration the rate was now 3.5 to 4.5 per cent. What has changed, he said, is the national atmosphere. The war on poverty got many low-income students into college and proportionally more of these students defaulted on their loans, Purdy said. The antistabulation atmosphere of the late 1980s also contributed to the default rate, he said. Purly said that since 1971, students have been more "down to earth" and open to counseling about financial problems and that he expected a lower default rate. Even if Congress passes this measure, which Republican committee members have described as a band-aid measure, there is bound to be more talk about student loans. The same subcommittee has scheduled hearings Feb. 28 to let students testify about the problems of student financial aid. Use Kansan Classified Ticket Sales begin Thursday Feb.14, SUA Office & Town Criers Tickets are $2.50 for Friday night $3.00 for Saturday night Hoch Auditorium - March 1 and 2, 8 P.M. ALL SEATS RESERVED Mammoth Values! Over 40 major labels including, Columbia, RCA. Sine Quan. Nonesuch, Vanguard, Atlantic, Turnabout, Abb, Command Rock, Classical, Blues, Folk, Jazz The James Gang, Fifth Dimension, B. B. King, Mountain, Aretif From the Who, Ella Hilizagel, The Doors, Andrew Hicks, Jimi Hendrix, Andre SEGOVA, Carlos Montona, Julian Bream, Palac Cauls, Pittsburgh Symphony, London Symphony, William Steinberg, Boxed Set Values! Beethoven The New Complete Symphonies, William Steinberg and the Pittsburgh Symphony Orchestra 8 record set Value at $4.50 $12.98 World's Greatest Cellists "Limited Edition" Pablo Casas, Pierre Fournier, Janos Starker 3 record set Value at $1.50 $5.98 The Classical Guitar Segovia, Almendra, Williams, Montoya and many others 5 record set Value at $2.50 $7.98 The beauty and Ravel The best of these five composers including Clair de Lune, La Mer and Bolero 5 record set Value at $20.00 $7.98 Americana Includes Grand Canyon Suite, An American in Paris American Suite and many others 3 record set Value at $15.00 $5.98 Gustav Mahler Symphony No. 8 and Symphony No. 2 Contempératur Mitropoulos and Kemperer 3 record set Value at $15.00 $5.98 Plus hundreds more! One Week Only Sale Begins Monday, Feb.18 Doors Open at 8:30 a.m. kansas union BOOKSTORE ---