Nation/World
Friday, Aug. 30, 1985
University Daily Kansan
5
Delinquent student loans piling up
United Press International
WASHINGTON — The number of students who fail to pay back government-backed loans is rising at a sharp and alarming rate, Education Secretary William Bennett said yesterday in urging congressional action to recover the money.
Bennett said the Education Department projects the current default rate at 11.7 percent and estimated it will rise to 13.6 percent by 1990. He said anticipated rising default costs probably will eliminate the $800 million savings called for in the fiscal year 1998 budget resolution.
"The financial implications of such
an increase in the default rate are staggering," Bennett said.
Guaranteed student loans, totaling an estimated $8.83 billion in fiscal 1985, are low-interest loans made by banks and other private lenders to students and insured by the federal government.
"Ultimately, the costs of a high default rate by current students must be borne by the taxpayers and by student loans in the future." Bennett said.
"We want to remind students who borrow from their fellow citizens to finance their educations that it is their responsibility to repay their debts."
Bennett said the department's projection of "a sharp increase in the estimated annual rate of defaults" is based on estimates that more than $1 billion in default claims will be paid by the department in 1985.
The 11.7 percent projected gross default rate is up by a full percentage point over the 1984 rate of 10.7 percent, he said.
The annual default costs could balloon to more than $1.8 billion by 1990, with the cumulative total of student loan defaults reaching almost $12 billion in just five years, he said.
knows for sure" why so many students are neglecting to pay back their loans because "we have very little hard data." She said there was a large increase in loans beginning in 1978 and "students are leaving school and entering repayment."
A department analyst said "no one
"Defaults occur most frequently in the first few years" and the main violators tend to be those students with low-income backgrounds who attended community colleges or trade schools. Students who were employed during their school career are more likely to repay than those who did not, she added.
Soviet vessel tags along with NATO ships at play
The Associated Press
BOSTON — Nearly 200 battleships, submarines and aircraft carriers from 10 countries joined forces yesterday off Boston Harbor, pretending the world was at the brink of war and rushing supplies to Allied forces across the Atlantic in NATO's largest-ever peacetime exercise.
As part of the exercise, known as "Ocean Safari 85," the convoy will speed to Iceland and then Europe, harassed and "attacked" by 41
ships, submarines and aircraft along the way.
Although the exercise is for practice, the Balzan, one of the Soviet Union's largest and most sophisticated spy ships, has been shadowing the group, officials said.
"This is the largest and most ambitious exercise we've done to date." said U.S. Coast Guard Lt. Russ Greer. "We try to make these as realistic as possible. It helps us evaluate our plans.
For a limited time
SIMS BIKE SHOP is offering
bicycles on America's most ex-
cellent bicycle line —
TREK
Save on every remaining
touring car, racing bikes
and touring cars all on sale with savings up to 150/200. TREK
car rentals are cheaper than you've ever gone. an less than you you've
got.
If you are the idea getting that NOW is the time to go out and have a party, you are absolutely right. The friends like at RICK's will help you select exactly the dates for your ride you do at a price you can afford. And there is a Killen and Rick will give you a Free Vipier Larry lyra ropes and Rick will give you a solfeed free
TREK
American Craftsmen
RICK'S BIKE SHOP
1033 VERMONT • LAWRENCE, KS. 66044 • (913) 841-6642
TRYOUR SUNDAY SERVICE.
At Kinko's, we offer complete copying services seven days a week. And our staff has a friendly, helpful, professional attitude you won't find anywhere else.
Trv Kinko's. We could be the answer to your prayers
kinko's
904 VERMONT 843-8019
23rd & IOWA 749-5392 12th & INDIANA 841-6177
AUDITION OUR SPEAKERS FREE FOR A MONTH
Don't chance buying bad speakers because you can only hear them briefly in a crowded store. Audition a pair of Acorn Acoustics A-225 speakers in your own room for 30 days. If you don't like them, we'll buy them back! Some features of the Acorn Acoustics A-225:
- 10 "woofer, 1" soft dome tweeter
- Low diffraction design for precise stereo imaging
- High power handling
Compare the A-225 with ANY speaker. You'll hear and see they are an outstanding value at only $256 per pair. Order a pair before Oct. 31, 1985, and we'll pay for shipping!
Solid hardwood cabinets in Oak, waln
Compact size: 21"H x 13"W x 8"D
WHERE TO BROOKLYN
10807 W. 90th Terrace
Overland Park, KS 66214
(913) 541-9361, 24-hours per day
- Solid hardwood cabinet in oak, walnut or cherry
WE DELIVER QUALITY PRINTS HOUR AFTER HOUR.
Announcing "Party Pics" by University Photography now located at- moto-photo