Tuesday, September 13, 1977
University Daily Kansan
5
Student credit reputation defended
By KEVIN KIOUS
Staff Writer
College students may not be the credit risks they have been made out to be, Jeff Weinberg, associate director of the student financial aid office, said Friday.
the new government policy of turning over delinquent accounts in the Federally insured Student Loan Program (FISL) to private collection agencies perpetuates the mistaken image of students as irresponsible money borrowers, he said.
*College students have been seriously maligned by the stories coming out of our schools.* Weighing in with Welburn.
The default rate, Weinberg said, has been reelected as high as 20 per cent.
Bill Kiefer, acting regional administrator for student financial assistance for the
KANSAN On Campus
Department of Health, Education and Welfare office in Kansas City, Mo., said the default rate for the FISL program was 12.1 percent and it was expected to be 12.3 per cent in 1977.
TONIGHT; KU SCI F1 CLUB will meet at 7 p.m. in the Regionalist Room of the Kansas Union. RAMAATER YADAY will present a linguistics colloquium, including "Linguistic Implications for Language Policy in Nepal," at 7:30 p.m. in Room 207, Blake. DONALD GROUT, professor emertus of musicolecture at Cornell University, will present "Music as Drama" and Scarietti and Drama Per Musica., at 8 p.m. in the介面 Woodruff Auditorium.
Weinberg said the default rate statistics were misleading because they included not only students in institutions of higher education, but also students in vocational technical schools.
Correction
Events
TOMORROW: Sigma Chi's 23rd Annual DERBY DAY Drinking Contest will start at 6 p.m. in Broken Arm Park, 31st and 32nd floor of the Old Town building. REPUBLICANS will meet at 7 p.m. in the Union's Regionalist Room. KU HANG GLDING CLUB will meet at 7:30 p.m. in the University Church of CONVOCATION sponsored by Campus Christians will be at 7:30 p.m. in Hooch Auditorium.
The debate between Dennis Quinn, director of the Integrated Humanities Program, and Arthur Skidmore, assistant professor of philosophy, will be at 7:30 in Kansas University Ballroom, on the Big Eight Room as previously reported in the Kansan.
"The huge default rates are in the vo-tech schools," he said. "The default rate is a scandal, but the real scandal is the bad reputation the students in institutions of higher learning are getting. The vast number of defaulting are not college students."
Weinberg said a large number of banks had dropped out of the FISL program after hearing stories about high student default rates.
The reason the default rates are high for vocational and technical schools, Weinberg said, is schools of that type often do not deliver what they promised.
Weinberg said in one instance some people signed up to attend a school, took out FISL's, then showed up for classes only to be told they were not allowed on which they paid tuition should have been.
"Almost anyone could set themselves up in their garage as a trade school," Weinberg said. "The Department of Education would certify anybody for a while." The requirements for accreditation has been tightened in recent years, he said.
The government has been lax in its collection of defaulted loans, he said. Students do not feel they have to pay back the money, Weinberg said, when the school did not incur any fines and the school only obligates the student only requires the money in order by letter, that they owse money.
Weinberg said the most common cause of college students failing to repay loans was they simply did not have the money shortly after graduation.
wenberg said college students defaulted,
but the rate was much lower at institutions
like Cornell.
Wurt Johnson, assistant vice president of Lawrence National Bank and Trust, said his bank had not been involved in the FISL program for the past two or three years because the program had problems other than the default rate.
"It requires bookwork like you wouldn't believe," he said.
The default rate was a factor in the bank's decision to drop the program, Watson said, but it was not so high that it was a conclusive factor.
The main problem, he said, was the program was "not running smoothly."
"n was getting too hard to challenge," he said. "They've created a monster they can't kill."
Weinberg said he thought the program's problems should be rectified. "A program that puts $2 million in the student's pockets every nine months is important," he said.
INTERNATIONAL CLUB (77-78)
is holding its annual election for academic year 1977-78.
Members should have their membership cards
in order to vote.
DATE: September 14
TIME: 7:00 PM
PLACE: Forum Room, Kansas Union
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Discrimination case awaits ruling
A federal district court judge has not yet ruled whether a discrimination case against the KU Medical Center will go to trial.
The ruling by Judge Earl O'Connor was expected yesterday, Mike Davis, University general counsel, said last night.
arguments were heard Sept. 2 in the case involving Jesse Gregory, a black medical student who has charged that he was discriminated against because of his race.
In his suit, Gregory said that grading procedures in two classes he failed in the 1976-77 term deliberately discriminated against minority students.
If the judge rules in Gregory's favor, the case would go to trial. If Gregory
wins the trial, a temporary restraining order which now allows Gregory to remain in school would become permanent.
THE ORIGINAL restraining order was good for only two weeks but has been extended since first ordered in July.
Gregory failed his first year of medical school but was allowed to repeat it when he appealed to internal Med Center committees. After failing two of three classes again, all appeals committee he be dismissed from school.
Gregory then appealed to the federal district court.
At the Sept. 2 hearing, Gregory asked for the injunction, attorney's fees and damages that he claimed he had
sustained after being dismissed from school.
DAVID DYSAST, Med Center legal counsel, said that if Gregory won his case in a trial court, KU could not be forced to pay the damages Gregory asked. Under the Eleventh Amendment to the Constitution, federal powers would prohibit a federal court from requiring a state university to pay damages, he said.
However, Dysart did say that the individuals named in the case could be ordered to pay damages. The individuals named in the suit were the nine Board of Regents members, five Med Center faculty and Chancellor Archie Dykes.
FRESHMEN
Register for AIR 144 and see what AIR FORCE ROTC can offer. Scholarship opportunities are available in many majors. Come in and talk to us. See Capt Macke, Room 108, Military Science Building or call 864-4676.
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