friday, march 20, 198 i
daily nebraskan
page 3
Student loans will stay but UNL must pay
By Diane Andersen
National Direct Student Loans, which had been in jeo
pardy of being withdrawn from UNL will continue to be
available to students.
Assistant Vice Chancellor Robert Lovitt confirmed
Thursday that a settlement lias been reached in negotia
tions with the U.S. Department of Education over repay
ment of interest earned from the investment of idle loan
funds. Part of the interest will be returned to the univer
sity's NDSL fund.
Lovitt said about $136,000 in investment income will
be returned to the $1 million UNL fund over a period of
three or four years, with the first payment being made on
July 1, 1981.
The settlement is close to what was proposed by
Interim Chancellor Robert Rutford and approved by the
NU Board of Regents in January. After months of nego
tiations, the federal government is no longer threatening
to stop further loans to UNL students from the NDSL
fund.
"We still don't think that we necessarily were doing
anything wrong" by investing the idle funds, Lovitt said.
"Nebraska is just the first school in the country to have
to pay interest back."
He said many other universities invest idle loan fund
money in a similar way. Following the settlement, which
Lovitt said was reached about two weeks ago, the interest
will continue to be put back in the NDSL fund as it has
been since 1 979.
The amount of interest the government said was not
properly put back in the fund between 1974 and 1979
was between $200,000 and 500,000.
Lovitt said he doesn't know where the $136,000 will
come from but, that his office will have to find it some
where in the UNL budget.
"I have an extremely positive reaction to the settle
ment," said Don Aripoli, UNL director of scholarships
and financial aids.
He said that because of other proposed federal bud
get cuts in student aid, retention of the NDSL fund is
very important.
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