Summer Nebraskan
. Number Six University of Nebraska-Lincoln July 20, 1 978
Charges of loan account misuse
checked by HEW official
by George Wright
Accounting procedures concerning student loan
money at UN-L will be reviewed next week as part of a
follow up on allegations made by Jack Ritchie, former
director of UN-L's student aid office.
Joseph Wett stein, assistant regional administrator
for student financial assistance, said he will meet
University officials to discuss the alleged violations of
federal regulations on the use of National Direct
Student Loan (NDSL) funds. Wettstein is a Health,
Education and Welfare (HEW) official in Kansas City.
Ritchie had charged that the University violated
federal regulations on handling loan money repaid by
students and invested by the state. Ritchie said the
interest lost was between $200,000 and $500,000, and
should have been returned to the student aid office for
future NDSL loans.
Miles Tommeraasen, vice chancellor for business
and finance, called the charges "nonsense" and said
Ritchie was irresponsible for saying $500,000 could
have been made in interest on the loan money, even
over a five to six year period.
Tommeraasen said the charges could be misleading,
because the interest money in question is not interest
money charged the student for the loan but is interest
earned by investing of loans paid back by students.
Ritchie said that the total dollars of misused money
quoted was not exact and that the $200,000 dollar figure
was probably too low and the $500,000 too high but, he
said, his actions were more responsible than ignoring
federal guidelines.
He said there is a lack of concern for federal
regulations and a lack of concern for the office of
financial aid as well at UN-L.
NDSL money is mixed with 500-600 other accounts in
a state pot, labeled 6512 and then invested,
Tommeraasen said. The status of money received from
students who are repaying loans is in question.
"Is it still federal money after the state has collected
it, invested it and reloaned it, or has it lost its identity,"
he said.
Tommeraasen said the argument is basically an
"argument between accountants" and it may cost more
to find out the amount of interest of this money than the
interest itself.
Ron Fritz, acting director of the student aid office
said about $1.6 million in NDSL is distributed to UN-L
students. He said that 2,100 students receive NDSL
money, ranging from loans of $100 to over $2,000.
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Candidate Whelan suggests
UN-L budget reduction
School of Journalism photo
Lt. Gov. Gerald Whelan said that he
might suggest that the UN-L budget be
reduced if he is elected governor.
School of Journalism photo
Republican Congressman and guber
natorial candidate Charles Thone said
duplication and competition between
Nebraska colleges should end.
In order to limit state spending to a
five percent increase, Lt. Gov. Gerald
Whelan said that, if elected, he might
suggest that the University of Ne
braska's budget be reduced.
Whelan 's remarks were made Sunday
in Kearney at the first debate between
gubernatorial candidates, Democrat
Whelan and Republican Congressman
Charles Thone.
"The University of Nebraska may be
looking at a reduction," Whelan said,
adding that Nebraskans should get
"greater accountability and produc
tivity" from the University. He said
some University instructors teach seven
or eight hours while instructors at other
state colleges average closer to 14.
Thone, in response, said that the
University is one of the "institutions
most responsible for the good life we
enjoy." The state school system should
be "second to none," he said, but
should also eliminate unnecessary dupli
cations and competition in Nebraska's
post secondary schools.
The first debate was limited to topics
of inflation, taxes and spending. Two
more debates are scheduled for August
and September.
Lieutenant Governor nominees. Re
publican State Sen. Roland Luedtke and
Democratic State Sen. Orval Keyes, also
took part in the debate.
American Civil Liberties Union
reviews Sports Complex policy
The American Civil Liberties Union (ACLU) is
reviewing the new policy which allows groups to rent
the Sports Complex for religious services.
The Union has requested a copy of the policy from
the University and will check it for possible violations of
the first amendment which require a separation of
church and state, according to Barbara Gaither of the
ACLU.
The new policy was approved last month by the
University of Nebraska Board of Regents. Miles
Tommeraasen said the old policy allowed religious
groups to rent the complex but said they could not hold
religious services there.
He requested that the Regents change the policy
after the Seventh Day Adventists wished to hold a
convention there but withdrew the request because of
the religious services stipulation.
He said other religious organizations "from time to
time" have requested to use the complex.
The new policy says that although the University
does not condone any religion it will aDow the complex
to be used for religious services.
Gaither said the ACLU "position would depend on
how they (the Regents) have written the policy."
There is probably no violation of the first amendment
if religious groups must pay the same rental fee as
other users and if all religious groups are treated
equally, she said.
Tommeraasen said every renter of the complex pays
the same fee of $2500 each day and that all renters are
treated equally.
There is a priority list for determining who uses the
complex, Tommeraasen said. "The bottom priority is
outsiders," he said.
On the inside...
Fulbright scholar
College Kus
ERA La sted
World outlook
Sp ngsteen's album
V of 'Heaven
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