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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (Nov. 18, 1998)
Officials say direct lending has aided UNL j By Jessica Fargen Staff writer The business of making student loans is a lucrative and sought-after business across the country. Until 1995, UNLs loaning was done through the Federal Family Education Loan Program, involving banks and groups such as the Nebraska Higher Education Loan Program. The University Nebraska-Lincoln switched over to direct lending in 1995-96, when then-chan cellor Graham Spanier approved the change, said James Griesen, vice chancellor for student affairs. Griesen said direct lending saved students money by bringing competition to the student loan market and simplifying the process. “It’s made our financial aid office work far more smoothly than in the past,” Griesen said. But representatives from the Federal Family Education Loan Program disagree and say they want UNL back. Tom Melecki, vice president of policy, research and planning of the Nebraska Student Loan Program, remembers Mien UNL switched. “It was a sad day for us,” he said. “UNL was the flagship institution. It has a great student body that takes loan obligations real seriously. “We lost a real highly valued group of cus tomers.” Since the changeover, the FFELP program has started to offer students a chance to shave 1 per cent off of their interest rate if they make prompt payments for 10 months; 2 percent for 24 months, Melecki said. Federal legislation in the recent Higher Education bill also may offer a rate-saver plan for direct-lending students, but it was not certain yet, Munier said. Melecki also pointed out that 45 Nebraska banks have formed an alliance that since May has served as one large source of lenders, instead of hundreds of individual banks. But Munier said the alliance does not involve Cut the rate Under the federal 1998 Higher Education Act, the interest rate for student loans wi luced. In order to receive that lower rate, students those with college debts must consolidate ill allow them to get the new ratj Who is Only studenl „ _ loans car) consolidate and get the lotvtff its who currently have a mixture of loam ins loans or FFELP loans cannot consolidaSl new rate. People no longer in college wf of any type or mixture can consolidate , , loan and get the lower rate. How is Jt done? In order to consolidate, r interest rate, studenf£§nd people arrange to do so in on * ~~sas%a; ■ in person, by 1. iff lenders. ■ online, by visiting http^ '.ed.gov/directloan ■ phone, by calling the Ui Department of Education at (800) 557-7392:" Jon Frank/DN all the banks in Nebraska that contract student loans, thus requiring students and the university to still deal with several other lenders. Tom Butts, associate vice president for gov ernmental relations for the University of Michigan, was a part of a lobbying effort in Congress that produced the 1993 bill authorizing direct lending. “It came about out of, really, decades of frus tration with the guaranteed student loan program (FFELP), which could hardly be characterized as a student-friendly or institution-friendly pro gram.” Butts said the FFELP program involved too many parts, and extra costs were incurred by stu dents. Overall direct lending makes up one-third of the loan market and is used at 1,300 universities, Butts said. One-half of those are four-year public universities. The clash between banks and universities is a national political issue, Butts said, and many financial aid administrators are under pressure to switchback. But Munier said he wanted to stick with direct lending at UNL. “Students and families continue to report for us how much simpler the direct loan program is for them to understand,” Munier said. Michael Watkins, who graduated from UNL in May, said direct lending made sense for him. “Direct lending is a lot more beneficial to stu dents because of the convenience it provides, and because you have people there who are present and can help you with your services,” Watkins said. He is a 23-year-old who now is a first-year pharmacy major at the University of Nebraska Medical Center. Watkins took out a direct loan at UNL his senior year, but most other schools in the state do not use direct lending. Having used direct loans, and now indirect loans, Watkins now can appreciate UNL’s direct process. He said most UNMC students don’t know what alternatives could be available to them. “When I applied for loans at the medical cen ter, it was a hassle,” he said. “At the medical center, ' I think people overall have the feeling and have the point of ‘Deal with it. There’s no point in com plaining about it.’” Loan plan provides lower interest rates j LOANS from page 1 UNL students, or 45 percent, who has student loans. In the five years Janssen has been at UNL, she has worked 40 hours per week at jobs including waitressing, instructing aerobics and tutoring. “If it wasn’t for loans and me working my butt off, there’s no way I’d be in school,” she said. But Janssen is luckier than many students, because her $20,000 in loan debt will be paid through a graduate program she plans on enter ing after graduation. Shannon Magnuson, a sophomore comput er science major, is not as fortunate. He took out a loan in the fall of 1996, then had to drop out because he could not pay it. Now, he is back in school and considering a loan again. “It’s really the only option I have now, short of relatives, but I feel kind of bad about that,” he said. Magnuson works about 30 hours per week in the computer center at the 501 Building on campus, but that is not enough. “Lately, nowadays you have to have a loan to go to college,” he said “And college is necessary to get a good job.” Munier agreed and called borrowing to pay for an education “investing in yourself,” but said borrowing for expendable items such as cable television should be kept to a minimum. Students such as Magnuson may not realize they can save money on their investments through the new interest rate. UNLs financial aid office did not notify stu dents that they had to consolidate their loans. But Munier said he did forward the information to the UNL Alumni Association to put in its magazine. . ' Munier said the interest rate change is a new option in student lending that he has never encountered, but he welcomed the change and the benefits it held for students. Students and others with college loan debt can consolidate their loans online at http://www.ed.gov/directloan or by calling the U.S. Department of Education at (800) 557 7392. CONFLICTS WITH INDEPENDENT STUDY Earn NU College Credit with College Independent Study courses. • Complete a course in 35 days or take as long as a year. • Supplement your on-campus course schedule. • Study and take exams when your schedule allows, when you are ready. • Send an average of six assignments/exams per course to your instructor. Receive rapid turnaround of materials. Undergraduate courses are available in 28 academic areas: Accounting Human Resources Mathematics Agricultural and Family Sciences , Nursing Economics Finance Nutrition AG LEC Geography Philosophy Art History Health Physics Biological Sciences History Political Science Broadcasting Industrial Systems Psychology Classics Journalism Real Estate Economics Management Sociology English Marketing Technical Writing For a free catalog or to register: .. ca.472-2175 2. Visit our Web site: www.unl.edu/conted/disted 3. Visit our office at the Clifford Hardin Nebraska Center for Continuing Education, Room 255, 33rd and Holdrege Streets. Nebraska l UNIVERSITY OF NEBRASKA-LINCOLN Division of Continuing Studies Department of Distance Education n 01998, University of Nebraska. Board of Regents. The University of Nebraska is an affirmative action/equal opportunity institution. ,jjffl, ■ — ' .- 1 .■' $ AMERICAN C R C W. | Quality Grooming * *> Products for Men \ ■ 'f -7TZ-;-:-—I The following is a list of goals ASUN has set and the progress it has made. 1. Continue commitment to diversity through sponsored events and increased communication with the campus community. —ASUN President Sara Russell and Andy Schuetman, Human Fbghts Committee chairman, are working with a universitywide committee to coordinate activities for Martin Luther King Jr. Day on Jan. 19. 2. Maintain regular campuswide community service projects. - Senate members completed their second community service project Tuesday by worting on the UNL Habitat for Humanity “MU House.” Ryan Anderson, chairman of the Campus Life Committee, said ASUN’s next service project will be with Day Watch, a homeless shelter. 3. Enhance technological services to students. -The ASUN Communication Committee is working with Maggie Doyle, pubic relations iaison, to update student government information on the World Wide Web. Russell said ASUN would Ike student input on what should be included on the ASUN Web page. 4. Research the options to make student evaluations more effective. - Kara Slaughter, Academic Committee chairwoman, saidthe committee has accompished its goals regartlng student evaluations. Slaughter sad next semester the committee wB send out an aWaculty 7V e-mal message that includes several midsemes^ feedback ferrfropfons. 5. Address campus parking concerns. t>—h ightotnew parting structure construction, Russel said sheislooking into legislation deaing with potential parting fee increases. o. continue enorts to unite city ana tast campus^ v -TefyWhite^Enwonmeotal Issues Suboomnfatee dairrnan,sai^he committee is promoting mass trans^servi^es onS&Tranbe^No. 24 and right shuttle service between City.and East campuses. WNte saidfheWartsmareUNLstuden& t»|y members andstalfbuse the busSsto ride between campuses. 7. Ctea^la^ roproeonWion of students through outreach initiatives. - Russel conShuep'SaW towrvhal meeting^and openferums to enhance dscussion arwngstudents.l'flpicstor future town halmeefogswi include parking concerns and dscussions about a rih cciS^Mional amer%ient creattog a new student body assembly. a Lobbylbrstuclentlciput and concern reganfing theASUN government party system. ‘ '3 ' % - f* I -^Last w^ek the senate vMad to send back toe Sectoral Comoisston^ proposed 1999 election rules , artoprocedties. Tito corrytesionwIptefienffSlfeions and adcStonalcttonges to toe proposal today for a senate vote. 9.Wori( to promote alcohol awareness andeducation campuswide. —ASUN members ate researching processes and metootte on how to award toe Laura Cockson Memorial^cholarshi). Russell sard a scholarship wi be awarded toisyeartoaUNL student who actively ' promotes and brings awareness to toe adverse affects ot alcohol.
