Broader tax exemption sought #
Exon: Bill would ease burden of financing an education
By Lisa Bolin
Staff Reporter
U.S. Sen. J. James Exon, D-Neb.,
is optimistic his bill to expand the
Educational Savings Bond legisla
tion will be passed by the 101st Con
gress in 1989 or in the second session
in January 1990. he said.
“1 have met no opposition and 1
expect none,” Exon said.
Exon’s bill would expand the
Education Savings Bond legislation
passed last year, he said. That legisla
tion allows parents to receive a tax
exemption on interest earned from
savings bonds purchased to finance a
student’s higher education.
Exon s bill will extend the tax
exemption on interest to relatives and
friends who would wish to purchase a
bond fora student’s highcreducation.
The growing cost of education has
been overlooked too long, he said.
The rising cost of education has
made it difficult for many people to
afford a higher education, Exon said.
Today’s average student aid pack
age is comprised of more than 50
percent loans, he said. Ten years ago,
grants constituted the majority of a
student aid package, Exon said.
John Beacon, interim director of
the Office of Scholarships and Finan
cial Aid at the University of Nc
braska-Lincoln, said that 60 percent
of the students at UNL receive finan
cial aid.
Because it is now more difficult
for students to qualify for aid, Beacon
said, it would appear that fewer stu
dents arc receiving federal aid than in
past years. But there was actually a 21
percent increase in federal aid in
1989, he said.
Exon said students meeting loan
requirements face the possibility of
being in debt by the time they gradu
ate and may become discouraged
from continuing their education.
Increasing the number of Ameri
cans eligible for interest exemption,
he said, will encourage savings and
education.
“By opening up this interest ex
emption we arc not only investing in
our educational future, we are also
investing in the financial viability of
our country,’ ’ Exon said in a prepared
statement to the Senate Finance
Committee.
If the bill is passed it will cost the
government money because income
tax is usually collected on bonds,
Exon said. But it will benefit the
financial situation ol the United
States overall, he said.
“The net cost will be nil compared
to the increased capital in the long
run,” Exon said. “In the past five
years, we have gone from the world’s
largest creditor nation to the the
world’s largest debtor nation, and an
additional pool of savings would al
low us to borrow less. ”
To qualify for the tax exemption,
U.S. savings bonds can only be used
for a student’s higher education. A
person who decides not to use the
bond for educational purposes will
have to pay the tax on the interest ol
the bond, he said.
Exon said the savings bonds can
be used toward any qualified school a
student chooses to attend.
“A student should not be limited
m choices or penalized for choosing
an out-of-state institution,” Exon
said. "We must allow mobility and
choice.”
The Education Savings Bond Act
has not been in effect long enough to
know exactly how much the purchase
of U.S. savings bonds has increased.
Exon said.
Beacon said he feels the expansion
of the legislation will help some stu
dents. But he said passing the bill will
not have an extreme impact on the
financial aid situation.
“In theory,”.hc said, "the impact
on financial aid will probably be to
allow more students to finance their
own educations, and thus reduce the
need lor federal aid, w hich is good. 1
don’t think however, that the impact
will be so great as to put financial aid
offices out of business.”
Loan recipients to meet
By Diane Hrayton
Staff Reporter
Students graduating Aug.
who have received a Stafford,
Perkins or Supplemental Loan
must attend a Loan Exit Interview
before graduation.
Students will receive informa
tion on cancelation privileges,
possible deferments, address
changes and payment plans. They
also will receive promissory
notes.
Interviews, which are required
by federal regulatio n, will be
Aug. 14 at 6 p.m. in the Nebraska
Union for students who have re
ceived Stafford and Supplemental
Loans and at 6:45 p.m. lor Perkins
Loan recipients.
Interviews also arc available on
Aug. 15 at 4 p.m. for Stafford and
Supplemental Loan recipients and
at 4:45 p.m. for Perkins Loan re
cipients. These interviews also
will be in the Nebraska Union.
Students unable to attend cither
session must contact the Office of
Scholarships and Financial Aid
before graduation.
Matkin doesn’t forsee trouble
WRC from Page 1
that harassing phone calls and van
dalism to her car led to her resigna
tion.
She said some women who used
the center opposed her efforts to open
the center to diverse viewpoints.
Araujo said she believed that these
women were responsible for the
phone calls and vandalism because
the acts occurred after healed meet
ings and controversial events.
Although Malkin said she was not
aware of the reasons for Araujo’s
resignation, she said “harassment
has never been a fear of mine.”
In January, Boatman said she
w ould nol comment on allegations of
harassment and vandalism. She also
would nol comment on the cause of
the conflicts within the center.
Boatman said that since Araujo’s
resignation, the center has been run
by a management team consisting of
herself, Kathy Shcllogg, activity
coordinator for CAP, and Marccc
Metzger from university housing.
Malkin will work year-round in
stead of only 10 months, as was the
case previously. She will make
$21,000.
The Women’s Resource Center
should be a place where women can
come and hang out and be comfort
able, Malkin said.
NdSaskan
Editor Chris Carroll, 472-1766
News Editor Ryan Stasvos
Copy Desk Editor Dsanna Nslson
Sports Editor Chuck Orssn
Arts & Entertainment Editor Scott Harrah
Photo/Feature Editor Connie Sheehan
Art Director John Bruce
General Manager Daniel Shattll
Production Manager Katherine Pollcky
Advertising Manager Jon Daehnke
Sales Manager Kerry Jeffries
Publications Board Chairman Pam Hein, 472-2588
Professional Adviser Don Walton, 473-7301
.. The Daily Nebraskan (USPS 144-080) is published by the UNL Publications Board,
Nebraska Union 34,1400 R St, Lincoln. Neb 68588-0448. weekdays during the academic
year (except holidays), weekly during the summer session.
^ ®I,e ®hCouraged to submit story ideas and comments to the Daily Nebraskan
by phoning 4/2-1763 between 9 a m. and 5 p.m Monday through Fnday The public also
as access to the Publications Board For information, contact Pam Hein, 472 2588
Subscription price is $45 for one year
o "oslmas*®f Send address changes to the Daily Nebraskan, Nebraska Union 34,1400
ri bt., Lincoln, Neb 68588 0448 Second class postage paid at Lincoln, Neb
_ all MATERIAL COPYRIGHT 1989 DAILY NEBRASKAN
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