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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (Aug. 25, 1993)
Students could lose tuition aid WASHINGTON (AP) — More than 900 colleges and trade schools stand to lose their eligibility to partic ipate in the federal student loan pro gram because too many of their stu dents have defaulted. The Education Department re leased figures Tuesday showing the default rates for every school in the United States that participated in the Federal Family Education Loan pro gram, fomeraly called the Guaran • teed Student Loan program. Most of the schools in danger of losing their eligibility are one-or two- „ year, profit-making career schools. They commonly have much higher default rates than more traditional academic institutions. The Education Department, armed with a 1989 law designed to drive down the number of defaults, has been dropping schools with default rates of at least 30 percent for three consecutive years from federal aid programs, including the Pell Grant program. The cutoff default rate drops to 25 percent next year. In 1991, taxpayers lost an estimat ed $3.6 billion on bad student loans. The department announced last month that overall default rates were decreasing because of the tougher collection methods. The number of defaults declined from 22.4 percent in the 1990 fiscal year to 17.5 percent in 1991, the latest year for which figures are available. Last year, about 1,000 schools were handed suspensions, which can last a year or more depending on the school’s corrective actions. The government bases a school’s default rate for a particular year on the number of borrowers scheduled to begin paying on their loans who de faulted either in that ytmrwthe f&t- <1 lowing year. Students apply for loans through the schools, which verify the student’s eligibility. Banks furnish the money. The government pays the interest on the loan while tne student is in school. If the student defaults, one of 47 guarantor agencies repays the lend er and then tries to collect. If they are unsuccessful, the government pays off the loan. Schools, faced with the loss of a major—sometimes primary—source of revenue, have been using collec tion agencies to go after the delin quents. Student loan default rates More than 900 colleges and trade schools stand to lose their participation in the federal student loan program because their students too frequently default. In 1991, taxpayers lost an estimated $3.6 billion on bad student loans. Loan default rales (all institutions): 1991 AP Stop Smoking. American Heart | Association Barnes charged with murder riiiKCfc (Ar) — The sheriff who opposed releasing a Plain vie w man in a child sexual assault case said Tuesday it shouldn’t surprise anyone that the same man is chaiged with murdering a Pierce boy. Many friends and acquaintan ces were shocked that Richard C. Barnes, 23, was charged with first degree murder in Friday’s stabbing death of Mitch B. Ziemer, 10, of Pierce. Ziemer was stabbed to death in a restroom in a city park. Barnes faces a November trial on charges of sexually assaulting a 12-year-old Laurel girt in June. His bond had been set at $45,000, but he was freed from jail July 12 when he signed a promise to show up for the trial or pay the bail, said Cedar County Attorney Mark Behm. The promise was backed by Barnes parents, Gary and Vayle Barnes of Plainview. Cedar County Sheriff Elliott Arens said he was uneasy about releasing Barnes, but wasn’t in a position to fight it. He said Barnes’ arrest Sunday in the Pierce death came as no surprise. “I interviewed him several times and it didn’t surprise me a bit,” Arens said. Barnes was being held without bond in the Ziemer murder. About two hours before the little boy’s funeral, Barnes was charged in Pierce County Court with first degree murder and use of a weapon to commit a felony. He asked Judge Philip Riley for a court-appointed attorney. The judge said he would try to appoint one before the end of the day. Funds sought for flood aid By The Associated Press Flood waters across Nebraska have subsided but several agen cies, banks, businesses and govern ment bodies are staying busy deal ing with storm and flood leftovers. The U.S. Small Business Ad ministration has extended the dead line to Nov. IS for Nebraskans to apply to the agency for flood-re covery loans. The original deadline was Sept. 17, but the extension will give res idents and business owners more ! time to evaluate damage and plan for recovery, said Raymond Chatham, SBA disaster program director for the region that includes Nebraska. Loans of up to $100,000 are available to homeowners for re pairs and up to $20,000 for person al property loss. Businesses and nonprofit organizations can apply for loans up to $1.5 million. Norwest Bank Nebraska also set aside $5 million for a special low interest loan fund for flood victims in the state. Find Savings of 30-50-60% storewide. All You Care To Eat Original Sauce Spaghetti & Two 4 Slices Garlic Cheese Bread Offer good tor Lunch or Dinner - Mon., Tues., and Wed. only. Must present coupon when ordering. Expires Sept. 15,1993. 228 N. 12th St ■ ■■■■ FREE j Second set of 3h5 prints RT NORTHBIDGE PHOTO CENTER Just shoui your UNL Student I.D. when you drop off your film! — Same Pag Seruice! In by 12 noon, out in 6 hours 24 Exp. 3x5 prints only $6.99+tax! 4 Hour and I Hour seruice also auailable. Offer expires June 1f 1994 Only S min. North of Campus Rt 14th & Superior Streets Next to Osco Drug in the Northridge Shopping Center 4 DAYS ONLY Special Y Hours _____ August 26th-29th Thursday 10-9 Friday 10-6 Saturday 10-6 Sunday 11-6 I