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Tuesday, November 17, 1981fThe Daily Tar Heel3
Edmc atio n dep art m eiit to limit student Jo an
R SCOIT PHILLIPS'
1)111 Sluir Writer
The U.S. Department of Education enacted guidelines
making it harder for college students to receive financial
aid under the Guaranteed Student Lpan Program.
The new requirements, which went into effect last
month, require a student applying for a loan to show
need if his annual family income is more than $30,000. If
the student's income is below $30,000, there will be no
need-analysis. All student with guaranteed loans also will
have to pay an originator fee of 5 percent of the loan.
"This is a dramatic change in the Guaranteed Student
Loan Program," said Skee Smith, an education depart
"Before, any student was eligible for such a loan; in
come was not a factor," she said. "Now, however, there
will be a need-analysis for those students whose income
is above $30,000."
Smith said the GSLP allowed the student to pay back
only the principal of the loan, The federal government
pays all the interest at a rate of about 9 percent, plus a
special allowance. The allowance goes to the lender in
order to give him a yield comparable to that on other
types of loans, she said.
. The maximum loan an undergraduate student can re
ceive is $2,500 a year, up to $12,500, Smith said. A grad
uate student can receive $5,000 a year, up to $25,000, in
cluding undergraduate loans, she said.
"In 1981 the loan volume reached $8 billion," she
said. "This is a tremendous increase over the $4.8 billion
figure from the year before."
Smith said the vast majority of loans were made
through the Department of Education, except for loans
made to medical students, which came through the
Department of Health and Human Services and
Veteran's Administration loans.
Smith said the new requirements were made to remove
some of the federal government's obligations. "The
department feels the primary responsibility for education
lies with the family and the student," she said.
Over 5,200 students took out $13 million through the
GSLP this year at UNC, said Eleanor Morris, the direc
tor of student aid. Even with the new guidelines, a ma
jority of the students previously taking the loans still
would be eligible, she said.
A major problem with UNC student aid is the lack of
directives from Washington, D.C., Morris said. "They
keep taking, but they don't do anything. If the
1982-1983 changes in eligibility are late, the determina
tion of aid will be impossible."
Morris said there had been some talk of spreading stu
dent aid programs through several federal agencies, "if
they place these programs in different departments, the
delivery of aid will be even more fragmented. I'm not
sure the whole system wouldn't collapse."
Since income information was not required for the
GSLP, the Student Aid Office had no knowledge on the
number of people who abused the program. Morris said
some people use the program to finance their children's
education rather than withdrawing money from their in
vestments to pay tuition costs.
"Most of the students we certify, though, seem to
have some need for that money," Morris said. Reduc
tions in student aid would limit somewhat a student's
choice of where to attend college, she said.
"We don't want this to be limiting costs," Morris said,
"since we would lose the diversity of the student body
and a great reserve of different kinds of people."
Funding uncertain for
d UNC facilities
By JANE FOY
1JTH Slarf Writer
The proposed programs of new con
struction on the campuses of the 16 UNC
schools would require approximately $150
million to complete, said UNC President
William C. Friday recently. Just how
much of that money the General Assem
bly actually will be willing to appropriate
is another matter.'
"Everything will depend on the eco
nomic condition of the country," Friday
said. It is too early to predict how much
money the UNC. system will receive, es
pecially since the proposals will not be
presented to the legislature for several
months, he said.
There also will be another important
element to consider in the budgeting pro
cess. About $32 million of the requested
amount has been earmarked as a top pri
ority by the chancellors of the predomi
nately black universities in the UNC sys
tem. This money would provide for an engi
neering building at Agricultural and Tech
nical State University, a library at Fayette
ville State University and a land acquisi
tion project at Winston-Salem State Uni
Also included is an administrative build
ing at Elizabeth City, and a $10 million
physical education building at The Uni
versity of North Carolina at Greensboro.
The chancellors of these universities
say these buildings are necessary if their
schools are to be upgraded as the recent
UNC desegregation suit specifies.
. Closer to home, there is already a great
deal of building taking place on the Cha
pel Hill campus. This includes an $8 mil
lion cancer research building, said Gor
don Rutherford, director of the planning
office. The money for the building came
not from General Assembly appropria
tions, but from institutions, private dona
tions and federal grants, he said.
Also included are a $7.7 million under
graduate teaching laboratory, the new
Walter R. Davis Library, a dormitory and
a student activity center, which will be
started next spring, Rutherford said.
Many students have expressed concern
over preserving the beauty of the Chapel
Hill campus. However, Rutherford said,
"Somebody once said everybody wants
Urban classification insures bus subsidy
By DEAN LOWMAN
DTH Staff Writer
A recent decision by a Congressional
committee to classify Chapel Hill as an
urban area will allow the town to conti
nue receiving about $650,000 per year in
federal funds to subsidize its bus system,
a town official said Monday. '
Danny Pleasant, Chapel Hill transpor
tation planner, said a joint committee de
cided to allow the town to receive funds
under section 18 of the federal transit
grant program for rural areas and small
towns until April 30, 1982, when the pro
After that date, Chapel Hill will be
considered eligible under another section
of the program which applies to urban
areas. That program is scheduled to end
in 1985, Pleasant said. A? -r ;;
The change became necessary when the
Chapel Hill-Carrboro area passed the
50,000 population mark the federal
division mark separating rural and urban
areas in the 1980 census.
If the change had not been approved,
the town would have been forced to re
evaluate the operation of a bus system,
"We might have been forced to reduce
the level of service and to cut back on
some of the unproductive routes" because
of insufficient funds, Pleasant said.
Chapel . Hill receives more money
through section 18 of the program than
any other city in the country, Pleasant
said, because "no other city .our size has
as large a bus system."
The local bus system received about 30
percent of its operating budget through
the grant program, he said, which re
quires local governments to provide a
matching grant to help cover the system's
deficit. ' '
, ..Congress wants to define both section
5 and.18 according to 1980 census figures,
but President Ronald Reagan has threat
ened to veto that proposal, Pleasant said.
"(Reagan) didn't want areas to start up
new projects," before the 1985 deadline,
Pleasant said. Reagan would prefer de
fining urban areas by 1970 figures and
rural areas by 1980 totals, he said.
If Reagan's definition is accepted.
Chapel Hill would be "caught in the
middle," he said. v
for the record Linda
The Daily Tar Heel incorrectly stated
in Monday's paper that injured fullback
Alan Burrus would not play for the Tar
Heels, again. Though he is an academic
senior, Burrus has one more year of foot
ball eligibility and may come back for a
fifth season if he chooses. But his is out
for the remainder of the 1981 season with
knee damage from Saturday's Virginia
the University to be like it was when they
were there. The problem is none of them
were there at the same time."
Many students today are concerned
about much of the new construction, but
someone who was a student in the 1940s
thinks the campus already has been ruin
ed, he said.
At one time when the only buildings
were Old East, Old West and South Build
ing and additions were being made to Old
East and Old West, people were asking
why any one thought we needed all the
new space, Rutherford said.
There is a Faculty Grounds Committee
that looks over the shoulders of school
planners and the Board of Trustees must
approve everything that is. done. These
are healthy safeguards, Rutherford said.
Next year, UNC will not request any
money from the General Assembly for
new buildings, Rutherford said, adding
that funds given the University will be for
utilities and renovations.
1 o arrive on time
The 1981 Yackety Yack should arrive
on schedule Wednesday and distribu
tion is scheduled to begin on Thursday,
Editor Cathy Robinson said Monday.
Unlike the Yacks of the past two
years, which were not distributed until
spring semester, the 1981 Yack is on
schedule, Robinson said.
Taylor Publishing of Dallas, Texas,
published " this .year's Yack, replacing
last year's publisher, Hunter Publishing
Co. of Winston-Salem. . '
Robinson said Taylor Publishing had
worked extra hours preparing the '81
Yack and that she was pleased with the
job they had done. She said communi
cations with the Taylor Co. had been
The 1981 Yack is 560 pages long and
has bout 250 pages of color.
Robinson said economic factors
forced this year's book to be 72 pages
shorter than last vear's..
The format of the '81 Yack can be
compared to a stream-of-consciousness
novel, Robinson aid. Particular interest
was paid to spotts and elections, she
The Yack is scheduled to be distri
buted to students in Room 213 of the
Carolina Union from 1 p.m.-7 p.m.
Thursday and 10 a.m.-4 p.m. Friday
and Monday. Students must present
ID's to pick up Yacks.
A student wishing to order a 1982
Yack when he picks up the '81 Yack
should bring cash or a check for
$13.50. Waiting lists for 1981 Yacks are
posted on the door of the Yack office
in 206 Union.
For more information about the 1 98 1
Yack, call Cathy Robinson at 885-7125
or Trey Monroe at 942-1316.
Highway to be widened
The state Board of Transportation ap
proved a plan Friday to widen two miles of
N.C. Highway 54 to four lanes.
The project to widen the road, which in
tersects Intersects 40 between Chapel Hill
and Research Triangle Park, was allotted
$50,000 by the board for surveying an ad
ditional $100,000 to begin right-of-way ac
quisition. Right-of-way .acquisition is the proce
dure used to purchase land from land
owners affected by the project.
Department of Transportation spokes
person, Jean Dodd said the project had
been surveyed and that it was "nearing the
right-of-way acquisition stage."
"It (acquisition) could be. starting
soon as next month," Dodd said.
From page 1
"Once an associate editor totally
rewrote a staff writer's story," Linda
recalled. "The writer came to me in tears
and said she wanted to quit the staff, but
I convinced her to talk to the editor and
work the problem out." ,
Linda ascribes her ability to help with
problems and work with people to quali
ties she was forced to learn as she moved
frequently in her childhood.
"Moving around teaches you to be
outgoing," Linda said. "If you don't
jump right in and meet people, you won't
get a chance to meet them because you
simply won't be there that long."
"Linda more or less does everything,"
Hummel said. "She's like my mother and
my editorial consultant in one."
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Because the construction is being done
in conjunction with the 1-40 project, it is
considered a state project, said Chapel Hill
transportation planner Danny Pleasant.
Pleasant said that since construction
would take place in , Durham County,
Chapel Hill could not propose the con
struction plan to the state transportation
"We did support the idea in our trans
portation improvement program," Plea
sant said. These programs are sent to the
board annually for review and considera
Pleasant said the plan was approved
because it is being done in conjunction
with the larger 1-40 project.
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