University Daily Kansan, March 2, 1982 Page 5 From page 1 Loans at the KU College of Health Sciences in Kansas City, Kan., received 679 loans worth $2,945,733. University officials said the proposed cuts would: - Cut the University budget. - Lower the quality and quantity of future professionals. - Change the social makeup of graduate education available to only the rich. THE PROPOSED cuts already have stopped the financial aid department's processing GSL application. "It's frightening," Thomas Berger, Council and Lawrence graduated. Council and Lawrence graduated. said "Those graduate students are going to have to consider alternatives available to them. 'One of them, obviously, is dropping out of school. *College costs are going to continue to go up, the ability to pay is going to continue to go down, the demand is going to At the University of Kansas, a single Kansas-resident graduate student's average expenses, including fees, books and living expenses, total $5,035 for nine months. A non-resident pays an average of $6,351 for nine months' expenses, and law students spend about $100 more a year for books, according to Jerry Rogers, director of financial aid. Jeff Weinberg, associate director of financial aid, said that if the proposed loan cuts pass, graduate students will have to leave school in droves. If the cuts pass, his department would work on a one-to-one basis with graduate students to look for alternative ways of financing their education, he said. "We'd see how many graduate educations could be saved," he said. Students quitting school could cause cuts in the University budget because the budget is based on enrollment, George Woodyard, associate dean of the graduate school, said. But not everyone thinks the cuts would force students to quit. Donald Jugendheimer, director of the journalism graduate program and journalism professor, said students could find ways to continue school if the cuts passed. STUDENTS COULD either take more course work and finish school sooner, or take fewer Rep. Larry Winn Jr., R-Kan, said that most students could finance their educations with their parents' help, private loans or part-time jobs. classes and work part-time during schook, he said. "That's not a bad four-letter word, 'work'. " "That is a lot of many people have (worked) through the years." He said the GSL program was getting out of control. cold. 1977, when the government began the program, it cost $70 million. Wine said. "Now here it is, six years later," he said, "it will cost $3.4 billion." Cuts in the education budget will bring the country back to a normal situation where students are able to go on college. "There was never any intention anywhere for the federal government to guarantee any education at all, certainly not graduate work," he added. "For '83 we were to cut out a lot of that." KU officials agreed that the cut would affect the University as well as the students. ONE EFFECT would be the change in the cultural composition of students in graduate programs. A higher percentage of students would stay in-state, where tuition is lower, and a higher percentage would come from wealthy families. Weinberg said. preserves of the upper-middle class, he said. Woodyard said he would be distressed if the GSL cuts made KU's graduate student population more homogeneous. "Graduate schools could end up being the presences of the unrighteous class," he said. "One of the really exciting things about a major university is that you get a high mix of students from different backgrounds," he said. "In student demographics would be trivial." Frank Reiber, professor of graduate studies in design and professor of design, said he did not think the cuts would affect the types of graduate students in his department. "Frankly, those who go to college are more likely to be the so-called socio-economic strata already," we wrote. "Very few of our graduate students are being supported by their parents," he said. "It may force those who are independent now to ask their parents for support." The proposed cuts could disastrously affect the nation, as well as the University, Woodyard The cuts would lower the quality of professionals because competition would decrease, Michael Davis, dean of the law school, said. said, because the country depended on graduates for research, technological development and future. "You just have a smaller pool of people who can get the entry fee, which is three years of experience," she said. "THERE ALSO WOULD be fewer professionals because many, such as doctors and professors, must have graduate degrees to work in their fields, Berger said. "This government has a commitment to higher education. If they eliminate the student loans program, it cuts right into this commitment, and in my opinion, it destroys this government's commitment to higher education." he said. Some congressmen said that students had been their own commitment to higher education. Many students have defaulted on their loans, Ren. Jim Jeffries, R-Kan, said. But the default rate in Kansas is lower than the national rate. Bonham said. The national default rate on guaranteed loan is 8 to 10 percent, in Kansas, it is 6.2 Percent. "It's very,very good," Bonham said. The president is cutting programs where there has been a demonstrated waste, and the waste has been recycled. “It’s a thing that hasn’t, I’m afraid, been very well managed,” he said. The financial aid department is already feeling the effects of the proposed cuts. "We cannot even process GSLs," Weinberg said. "This time last year, we had processed hundreds and hundreds of applications for this year." The financial aid department is already four months behind in loan processing, Weinberg said, and it will have to wait at least two weeks to begin processing GSL applications. Ouadhali said she was not pleased with the prospect of being excluded from the guaran- tin tribe. "It would change your day-to-day living," she said. "But if I really wanted to go to school, I could." GSL alternatives exist at stiff borrowing cost Graduate students can find other ways to finance their education if Congress approves Reagan's proposed budget and makes graduate programs more cost-neutraled loans, but the options may not be appealing. By ANN WYLIE By ANN WYLIE Staff Reporter One option is Auxiliary Loans to Assist Jerry Rogers, director of financial aid, said recieved. 'How can we expect America to be strong unless we have both the industrial capital formation capability and the human being capability to put it all together?' develop more investment capital, "but forgot about human capital. ALAS is a federal loan program. The annual borrowing limit is $8,000 a year with a total limit of $40,000, more than the guaranteed loan's limit of $5,000 a year with a total limit of $25,000. (Additional information provided by United Press International.) "That isn't really much help to the student," Rogers said. Staff Reporter Most students cannot afford to pay 14 percent interest while they are in school, he said. A student who borrowed $5,000 in guaranteed loans as an undergraduate and $8,000 a year in auxiliary loans for three years as a graduate student would have to pay about $435 a month on the loan for 10 years, even though he had paid interest while he was in school. Rogers said. states, meeting Kansas the state could be another source of financial aid. Woodyard said "Think of paying an educational debt 10 years after you got out of school," he said. GSL But Reagan's proposed budget calls for a cut in campus-based, state-funded programs. In 2013, the governor proposed which is $7,684.84 less than the budget for the 1980-81 academic year. These cuts would affect three programs, Rogers said. No new money would be provided for the National Direct Student Loan program, and the Supplemental Educational Opportunity Grants and State Student Incentive Grants would be eliminated. KU students also could get short-term loans at percent interest from the Kansas University Enterprise Bank. The Endowment Association gave 700 fewer loans in a four-month period this year than in the same period last year because so many students are still relying on and do not need shorter loans, Rogers said. This program could help graduate students who need to pay tuition or an apartment deposit immediately, he said. They could borrow the money and pay it back later in a lump sum. The program would probably increase its number of loans again if graduate students could get them. Also, a student might be able to get a loan from a private lender. Loan officers from the five Lawrence banks said that they would give loans to graduate to the will of the American people," House Speaker Thomas P. T."ip" O'Neil, D-Mass, told the students, recalling that proposals to cut social security benefits were scrapped following protests from senior citizens last year. They said most banks would give graduate students small, short-term loans, such as $1,000 for 90 days. Larger贷款 would require credit, and they would not allow a student to possibly an account with the lending bank. From page 1 Interest rates at the banks ranged from 16 percent to 20 percent. A loan of $5,000 at 18 percent interest, and payable in 36 monthly installments, would cost a student $108.76 a month for a total of $5,073.69, equal to the Leiding of the Lawrence National Bank. on whether Congress passed the proposed 50 percent cut in student aid. Visit From page 1 "I don't think they'll get away with this cut," she said. "That's what we're here for." From page 1 Recall Regents schools will be decided by the entire Ways and Means Committee. The professors represented one of several groups that made a pitch for state funds. The senators also heard requests from student and classified employee representatives. Rep. Dan Glickman, D-Kan., said the Reagan administration program sought to Because higher faculty salaries are KU's priority request, as they have been for the past few years, faculty and administrators stressed their importance. "You can stop this program of cuts." "I see it as a vote of lack of confidence," Angino said. "At the present time, KU salaries are in the lowest 20 to 25 percent of major AAUP universities." Angino said he was disappointed with the 7.5 percent increase the Senate committee tentatively approved last week. The committee is also going to make its final recommendation later this week. said that the 4,268 signatures would be delivered to the county clerk's office on Wednesday morning for validation. If enough of the signatures are received, the registered voters, then the election can proceed. Officials agreed that lobbying could influence lawmakers. "The Congress of the United States responds Argerisinger that because the city already was committed to having a special election on the validity of the city's storm water management fee, the county clerk would try to coordinate efforts with the city so that both elections could be held at the same time. The city will have a referendum on the validity of an ordinance that would impose a 50-cent monthly water fee on the water bills of residents. The money would pay for a storm水 runoff study. Coordinating the two special elections would save the city, between $8,000 and $10,000. Save the city. ship and save ACADEMY CAR RENTAL a rental car for $9.95/day $60.00/wk $225.00/mo 25 FREE miles per day. 841 011-808 W 24th INTERESTED PRE-MED STUDENTS Representatives from KU Medical Center will be coming to KU to visit with students on an individual basis on the following dates: April 5 April 19 March 8 March 22 To make an appointment contact the pre-med secretary. 210 Strona. LAWRENCE TOYOTA/MAZDA LAWRENCE TOYOTA/MAZDA LAWRENCE TOYOTA/MAZDA LAV --- TOYOTA LAWRENCE MAZDA LAWRENCE AUTO PLAZA 842 2191 V24 WE KEEP YOUR TOYOTA CHEAP·2·KEEP PARTS AND SERVICE TOYOTA LAWRENCE MAZDA LAWRENCE AUTO PLAZA 842 1917 Coupons must be presented at time of write-up Includes: - a-wheel drive and mag wheels slightly higher All Japanese Imports - inspection of tires for cuts and proper air pressure $18.00 - checking and adjusting of caster (and camber where applicable) - checking and adjusting toe-in - examination of shock absorbers for leaks Electronic ignition (included all parts and labor-6 cy) models slightly higher! We'll * install new spark plugs * set engine to recommended manufacturer's specifications * inspect operation of choke * install new fuel filter Mazda and Toyota only * rotary engines not included TUNE-UP SPECIAL ALIGNMENT SPECIAL TOYOTA LAWRENCE MAZDA All Japanese Imports LAWRENCE AUTO PLAZA 842/1911 Coupons must be presented at time of write-up DA LAWRENCE TOYOTA/MAZDA LAWRENCE TOYOTA/MAZDA LAWRENCE TOYOTA/MAZDA **Standard Ignition** (Included all parts and labor-6-cyl.) models slightly higher. . . We'll • install new spark plugs • replace points and cond • set engine to recommended specifications • adjust carburetor • inspect operation of chip • install new fuel filter Mazda2s and Toyota only • rotary engines not included Featured Speaker