Image provided by: University of Nebraska-Lincoln Libraries, Lincoln, NE
About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (Jan. 12, 1987)
Daily Nebraskan Monday, January 12, 1987 Cuts mot ceinMn UNL financial-aid director opposes budget cut proposals By Kirk Zebolsky Staff Reporter The Reagan administration's pro posed cuts of grants and work-study programs for college students will face "discussion, amending and new prop osals" before they become law, said Bill McFarland, the UNL director of Finan cial Aid. "Reagan has always submitted this kind of budget proposing drastic cuts and eliminating many programs and hampering others," McFarland said. "Historically, this budget does not get through as presented." The administration also proposes an end to paying part of the interest rates on Guaranteed and National Direct student loans. The administration, in its 1988 fiscal year budget proposal, said college students should pay for most of the costs of education accord ing to the Associated Press. To make federal loans easier to repay, the administration has proposed "income-contingency" loans that would allow holders to make payments that vary with the size of their incomes. The White House wants to drop the 5 percent origination fee charged to GSL holders, but wants to add a 9 percent fee to cover the costs of defaults. The Reagan budget would cut $5.5 billion from the $19.5 billion approp riated for the Department of Education this year. College students would "bear the brunt" of most of the cut, the arti cle said. McFarland said he, financial aid associations and the Association of Land Grant Organizations will lobby against the budget. "It would be a serious reduction in financial aid," he said.. "But I just would say that we will have many opportunities to make our points. "I understand the needs for making cuts," he said. "I think we're willing to take our fair share with other programs to help the country to survive." But, he said, comparing the cost of education funding to the cost of build ing "one or two B-l Bombers . . . I'd rather see it go to education." McFarland said a shift in availability from grant funds to loan funds has created a situation where more stu dents borrow more money. If the coun try gets on "sound economic footing," he said, there could be a shift back to grant funds. New requirements for schools and banks to counsel students about debts before they borrow "helps the students to gain some maturity in the financial area," McFarland said, but "they seem to be mortgaging their future." "The more informed individuals might be less willing to mortgage their future . . .and will simply take another option," he said, referring to "middle-and upper class" students. A Lincoln bank official said "disad vantaged" students also might not bor row for education. "I think maybe they aren't aware of what's available," said Ken Backemeyer, senior vice president and trust officer at Union Bank and Trust Co. "I have heard that disadvantaged people are not used to borrowing money ... he said. "And to them it's more traumatic ... to think that they might have to take out a loan and what that may have to require in the future to make the payments." Kathy Hoffart, a student-loan spe cialist at FirsTier Bank of Lincoln, said families in higher income brackets will find it more difficult to qualify for stu dent loans because of new needs tests. This will offset the increase in the max imum loan amount allowed yearly, she said. Both officials said increased student debt will not greatly harm borrowers' economic well-being. If students responsibly plan to pay off loans, Backemeyer said, their ability to borrow for other needs won't be hurt. Hoffart said students are "just going to be more obligated." She said that she predicted that UNL students will move out of Nebraska to find jobs with a big enough salary to pay off the loans. Hoffart and Backemeyer said that staff at their banks try to warn students about how much their payments will be. "A lot of them maybe don't under stand exactly how much they're com mitting themselves for payments in the future," Backemeyer said. "A lot of students don't even realize it's a loan." He said that it is important for deb tors to "keep in contact" with their lenders to prevent defaults, which will hurt their credit. Personal Free Video Rental with Check Cashed Out of State Now Open $ Fast Budcs $ Check Cashing Service 1 1 03 North 27th Street Phone 435-4352 Two-Party - Checks Cashed -Any Kind From Anywhere Open 24 Hours Payroll I was tired of being told I 1 ;;1 iJ naaagreat ,u V personality "I wanted to lose weight-fast-and once and for all.There is a way. It's called: Diet Center" liQse up to 10 pounds your first two .weeks! Watch the inches disappear without drugs, stress, fatigue or hunger! And. compared to the national average, at Diet Center you're 16 times more certain that the weight you lose will stay lost We can show you how. right now. Your first personal consultation is free. Call now! You're going to make it this time. V IS" 3720 S. 14TII STREET 474-1220 f J l! a 1 1 . r !li!i:!il!liiil;lii!l!!l 1 v. t . mr- sr " SX1 i'.- v. .i:r 11 !... ....:: i-'v;." mmim f l MINI REFRIGERATORS Rent by the month or by the semester 5 cubic Ifoot FREE SERVICE ' SAVE BIG NOW! BUNKBEDS NOW $1995 PER MONTH 19" COLOR TV NOW $24.95 PER MONTH SOFA NOW $- "j 95 PER MONTH RACK STEREO NOW $3395 PER MONTH DINETTE NOW $J 50 PER MONTH MICRO WAVE NOW $11 95 PER MONTH PIT GROUP NOW $3395 PER MONTH FULL SIZE WASHER & DRYER NOW $3Q 95 PER MONTH BOOKCASE NOW $4 50 PER MONTH COMPACT STEREOX WATERBED NOW i NOW $g 95 $- g 95 PER MONTH PER MONTH VIDEO RECORDER BEDROOM VHS Format SET NOW NOW$28.95 $14.95 PER MONTH PER MONTH SOFA. LOVE SEAT HOOVER & CHAIR VACUUM NOW now $21 95 $7 95 PER MONTH PER MONTH CHEST OFk 3R00M DRAWERS FURNITURE PACKAGE N0W$5 50 N0W $gg 95 PER MONTH PER MONTH DESKS NOW $g 50 PER MONTH SOFA SLEEPER NOW $19.95 PER MONTH 13" COLOR TV NOW $1 3 95 PER MONTH PORTABLE WASHER & DRYER NOW $2995 PER MONTH COFFEE OR END TABLES NOW $2 50 PER MONTH RENT ANY ITEM BY THE SEMESTER AND SAVE EVEN MORE MONEY TODAY! 0i - 1 1 FOR A SHORT TIME 'T. JCr& t v s if r w if v 1m. I . Jf df Jf viw.v (ii) sci o f, um Page 3