University Dally Kansan, February 1, 1983
Page 3
'84 budget cuts GSL funding
By SUSAN STANLEY Staff Reporter
President Reagan's 1984 budget proposal announced yesterday included a $900 million reduction in funds for the Guaranteed Student Loan program, which could make the program a success year, a KU official said yesterday.
Jerry Rogers, director of financial aid, said that GSLs for graduate students could be eliminated because of the reduction. The elimination of GSLs would mean that did not pass when it was introduced last year, Rogers said.
The reduction could affect students in several other ways. For example, the reduction might bring about an increase in the origination fee on graduate GSLs to 10 percent, he said. The origination fee is a basic fee charged to those who receive the loans.
THE RECIPIENT must pay interest on the total loan even though some of the loan is used for the origination fee, he said.
Reagan's proposal did not include a provision for increasing the 5 percent
origination fee for undergraduate loans, only graduate loans.
The government also could decide to lower the interest subsidy to private lenders, Rogers said. The federal government now pays part of the interest on each loan so recipients receive lower interest rates.
But some of the lending institutions might decide that the interest rate is not sufficient incentive for them to continue offering the loans, Rogers said. It could become difficult for students to find institutions that offer the loans.
THE REDUCTION could also be implemented by making the loans available on a need basis only, he said. A student's need would be determined by his parents' income.
"The only thing we can do now is wait and see," he said.
Last year the legislation concerning financial aid was not passed until June, and loans could not be processed until then. Roger Cohen is now responsible for travel late (or enrollment). The same thing could harnen again this year.
Reagan's proposal also included
increasing work-study funds by 60 percent.
percent. Assistants like the work-study idea." Rogers said. "They like the idea of students paying part of their college costs."
Reagan has also proposed the elimination in 1985 of the Pell Grant program, which provides grants to students based on need. The money would go to supplement the Self-Help program, which is a combination of loans and work-study funds, Rogers said.
ACCORDING TO REAGAN'S proposal, the student's contribution for his education would amount to 40 percent of his total school expenses. The maximum grant award is greater. The maximum grant amount would be increased to $3,000.
The maximum Pell Grant now is $1,200. Roeters said.
Eliminating the Pell Grant while increasing work-study allocations will not necessarily be a good thing, he said.
"It would take a disciplined student to save up the money for the next semester's tuition while, at the same time, paying for the present semester's expenses," he said.
Staff Reporter
State explores KU high-tech areas
By JEFF TAYLOR
Members of a high-technology state House committee who visited the University of Kansas yesterday were told that Lawrence was among four sites being considered by a California firm that planned to build a high-tech research complex.
Frances Horowitz, vice chancellor for research and graduate studies, told the committee that a proposed hightech research park west of Lawrence had enticed the firm.
The research park would be built and made available through cooperation with the city and the Lawrence Chamber of Commerce.
She would not identify the firm or what kind of high-tech research it did.
HOROWITZ SAID Lawrence was in the running with Albuquerque, N.M., Seattle and a city in Florida, possibly Orlando.
The Kansas Legislature this year formed the House Committee on Communication, Computers and High Technology, which was to explore the state's resources for attracting high-tech industries.
The committee members wound their way through five buildings on the Lawrence campus and saw a miraj of
computers and sophisticated machinery.
They watched a computer, used by the Kansas Geological Survey to draw sophisticated maps, draw a pen-and-ink map of the world in less than five minutes. A computer operator said would take one person three days to complete.
THE COMPUTER'S metal arm zipped across a huge sheet of paper while the pen it was holding bobbed up and down at 60 mph.
They visited the Pharmaceutical Complex on West Campus, where white-robed technicians showed how tablets of medicine had been designed to dispense controlled amounts of antiseptic paste of one lamp, amoun
They also visited the engineering-design computers in Learned Hall and the Space Technology Center on West Campus.
And in the basement in the Computer Technology Building, where dusty paper supplies are stored, sat an unused computer that was donated to the University by Security Benefit Life Co.
"All we need is a little support to wheel it in and plug it in and get it going," said Jerry Niebium, director of the Academic Computer Center.
BUILDING TO building, University faculty members pleaded their cause
for new research equipment and for money that is needed to operate computers the university now has.
They said KU could be in an even better position to attract private industries to the state that could build a research money to the University.
Chancellor Gene A. Budig told the committee in the auditorium at the computer center that the state's universities would need financial aid from the Legislature in order to excel in high tech research.
At the Pharmaceutical Complex, Takeru Higuchi, professor of pharmaceutical chemistry, said equipment at KU was ten years out of date, but he said the committee had the power to finance the money for buying updated instruments.
IT'S NOT always the amount of money that is spent that is important," he said. "It comes down to the commitment the state is willing to make. If there's commitment, there's money from private industries."
He said Kansas would have to show high-tech industries that the state is interested in having high-tech business flowing into the state's economy
"There is a great deal of private money available. But to attract that money we have to make it attractive for the entrepreneur type," he said.
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