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6The Daily Tar HeelWednesday, December 7, 1988
Despite default record, soarainiteed stydeinit loainis still available
By CRYSTAL BERNSTEIN
The guaranteed student loan
(GSL) program has a successful past
and a bright future, although numer
ous incidents of student default have
been reported, said Stan Broadway,
executive director of the N.C. State
Education Assistance Authority.
The student loan program is
accessible to anyone who needs aid
for education beyond high school,
regardless of previous academic
performance or planned field of
study, Broadway s?id.
Funds for the loans are supplied
by banks and other financial insti
tutions. The loans are guaranteed
against default by a state agency or
local pizza deliveries to offer credit paymeot options;
By JAMES BENTON
The competition among area pizza
businesses is heating up, as some
pizza deliverers are expanding their
services to get a bigger slice of the
Chapel Hill pizza market.
Managers of two businesses, Uni
versity Pizza and Gumby's, said they
would allow customers to use credit
cards to pay for orders.
In October, Carolina Dining Ser
vices began offering a service with
Domino's Pizza that allows students
to pay for pizza orders with their meal
Managers of some area pizza
businesses said the new service had
hurt their business and was unfair.
University Pizza, a new delivery
service, opened its Chapel Hill
franchise last Thursday and is offer
ing the University Pizza Card (UPC),
a credit card that students can use
to charge pizza or calzone orders.
"Basically, the idea is to simplify
the delivery business between us and
the customer," said Doug Hampton,
University Pizza manager. Students
can obtain a University Pizza Card
by filling out a credit application and
taking it to the store at 300 W.
Once the information is verified,
students are issued a charge card with
a limit of either $125 or $250 per
month and are eligible for a 5 percent
discount when paying their monthly
bill. Students must pay a $10 one
time charge for the card, which is
credited to their account, and a $2
monthly' charge for billing and
Credit Union Rates
SHAflE CERTIFICATE RATES
30-89 Days 8.000 simple
90-179 Days 7.750 8.057
180-269 Days 8.0808.414
270-364 Days 8.0808.414
365 Days 8.2548.603
Compounding is daily. Rates subject to change daily.
Longer terms are negotiable, as arearnmmls ofSWjOOO or more.
Share Secured 10.00
Rates subject to change daily.
CSCU is not affiliated with UNC-CH.
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a private non-profit agency insured
by the state, he said.
The average size of a guaranteed
student loan in 1987 was $2,473. The
average Stafford loan was $2,100, the
average supplementary loan for
students was $2,600, and the average
parental loan was $3,000, Broadway
said. The loans were all funded by
the GSL program.
About 93 percent of the students
in North Carolina who obtain loans
under the program eventually pay the
money back, he said. "Generally, the
repayment of the student loans is
done on time and is done by most
Between 93 and 95 percent of the
money loaned has gone back into the
system, he said.
And cardholders also get a two-for-one
pizza offer when they come
to the store to pick up their orders,
instead of having them delivered.
The card will benefit customers and
pizza deliverers, Hampton said.
Customers won't have to scrounge for
money to pay for pizza, and delivery
drivers won't have to carry large
amounts of cash. '
Instead, the customer signs a ticket
and gives it to the driver, presenting
a picture ID.
Hampton said he expects the UPC
offer to do well against other Chapel
Hill pizza businesses, including the
Domino's meal card plan.
Only about 7,000 students have
meal cards, Hampton said, which
leaves a huge market of students
which University Pizza can focus on
for their business. The Domino's meal
card plan doesn't offer discounts to
students or allow them to charge tips
to drivers like the UPC does, he said.
Another area pizza business is
developing new services to stay
competitive in the pizza market.
Gumby's is considering allowing
students to charge their pizza orders
on MasterCard or Visa, said Jim
Caramello, Gumby's manager. This
option would probably begin next
semester, he said.
Since many students at UNC have
credit cards and Gumby's has lower
prices than their competitors, the
credit card option could make order
ing pizza easier for customers and
improve business, he said.
Y r i d e
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The national default rate for the
1987 fiscal year was 6.2 percent, said
Ross Kleinman, communications
director for the Student Loan Mar
keting Association, an organization
that buys loans from lenders.
A certain level of default, which
is defined as being at least three
months late in making a loan pay
ment, is to be expected in a program
that has such a broad mandate for
access, Broadway said.
"How much cost we are willing to
sustain in order to preserve that
principle of open access" is one of
the main issues in conducting the
program, Broadway said. The GSL
program would have to be more
restrictive in giving out funds to cut
the number of defaults.
The University Pizza Card will
probably affect Gumby's business
slightly, Caramello said, but not as
much as the Domino's meal card offer
The Domino's offer cut Gumby's
business on campus by 70 percent and
reduced it by 50 percent overall,
Caramello said. Since the offer
By SIMONE PAM
UNC Student Stores has expe
rienced a decline in holiday sales as
a result of the construction in the
building, officials said Tuesday.
Overall Student Stores sales have
decreased 20 percent since construc
tion began Sept. 26, Bill Scarbo
rough, Student Stores controller,
The decrease has affected the main
floor area of the store and the Bull's
"We thought it wouldn't affect us
as badly as it has," Erica Eisdorfer,
assistant manager at the Bull's Head
Bookshop, said. The bookshop will
have to take books off the shelves
because it's condensing its . book
category sections, she said.
Because December is the biggest
month in terms of sales for the
bookshop, Eisdorfer said, she expects
Retailers report bopming holiday business
By MYRNA MILLER
Chapel Hill shoppers certainly
aren't being Scrooges with
their money this Christmas
season. Employees of various busi
nesses at University Mall and on
Franklin Street said sales have
increased this year.
Business is wonderful," said
Shelton Henderson, owner of the
Shrunken Head Boutique. "We are
selling a lot of the super-heavy
Carolina sweatshirts and the Carol
ina afghan throw blankets."
Kathy Sapp, manager of Carolina
Pride, also said she was pleased with
sales, but she had not seen a real
pre-Christmas rush yet. "It is hard
to tell how good sales will be
because the students are leaving so
much later this year," she said.
Farther up Franklin Street, at the
Intimate Bookshop, sales are also
better than last year, manager Peter
Mock said. "People just dont seem
to mind spending their money," he
At the store, the big seller this sea
son is David MacCauley's "Why
Things Work," a scientific book that
explains how machines work in a
way that people can understand. "It
is the big Christmas book this year,"
Mock said. "We are sold out, every-
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UNC students usually repay their
loans on time, said Eleanor Morris,
director of the scholarships and
financial aid office at the University.
"We have a good record of repayment
from UNC students," she said.
The low rate of default is partially
due to the efforts of the collection
staff, who keep students informed
about their loans and work with
students who are having difficulties
repaying them to prevent default,
Morris said. An extension of the
repayment period or a decrease in the
monthly payment are possible
arrangements for students having
difficulty meeting their loan payment
plans, she said.
If the overall rate of default were
to become unacceptable, government
started Oct. 24, most of Gumby's
business has shifted to apartment
complexes in Chapel Hill and Carr
boro, he said.
The UPC wont drastically affect
Gumby's business, since getting a
UPC is "too much hassle" and
students already have their meal cards
and access to Domino's, he said.
sales to increase over the next few
The Bull's Head Bookshop is the
focal point of the holiday season at
UNC Student Stores, mainly because
it offers special giftbooks and holiday
specials, said John Gorsuch, Student
Stores administrative assistant.
To appeal to customers, the book
shop runs discounts such as the
Thursday Special, a markdown of
certain sections in the store during
the holiday season, Eisdorfer said.
The Bull's Head Bookshop offers
many holiday gifts, such as discount
calendars and new N.C. quilts,
Eisdorfer said. The bookshop also
carries several books that serve as
excellent presents, she said.
Student Stores is trying to help the
bookshop's business by selling mer
chandise in areas outside the building,
such as the Pit.
body is looking for it, and nobody
can find it."
Record Bar is making more
money this year for several reasons,
manager Richard Layne said. "The
compact disc explosion has been a
real important factor," he said. Also,
he said, the economic situation
seems good this year.
Layne said 30 percent to 50 per
cent of his sales come from UNC
students' purchases. The big sellers
at Record Bar are the new releases
from U2 and R.E.M., as well as tra
ditional Christmas music, he said.
Students are also spending money
on Christmas decorations, said Bar
bara Nowell, manager of Rite Aid
Discount Center. "People are buying
all kinds of candy and Christmas
decorations," she said. "We are even
sold out of spray snow."
Roses at University Mall is also a
popular spot for economy Christ
mas shoppers. "Sales this year are
tremendously over those of last
year," office assistant Belinda Hill
The biggest-selling items at Roses
are the Nintendo game machines,
but similar Atari games have
stopped selling, she said. "We are
sold out of the Nintendos, which
cost from $99.97 to $149.97," she
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funding to lending agencies could be
retracted, Broadway said.
At UNC, the office of scholarships
and student aid would be put on
probation and would not be allowed
to make loans if too many students
neglected to pay back their borrowed
funds, Morris said.
Those who neglect to repay face
strong penalties. Provisions for debt
collection are enforced to the max
imum, Broadway said. Students who
default on loans can be taken to court,
where a judgment can be obtained
to take the student's tax refunds or
seize his property, he said.
UNC loan officials can hold the
academic transcripts of students who
neglect to repay their loans and refuse
"I think it's a case of too little, too
late," Caramello said.
Randy Easter of Domino's Pizza
said it was too early to tell whether
the UPC would affect business.
Domino's business increased substan
tially when it began the meal card
pizza offer but has since leveled off,
drop in sales at Stores
Sales in the main floor section of
the Student Stores have also
decreased because of the remodeling,
Gorsuch said. Sales of certain items,
such as UNC sweatshirts, T-shirts and
mugs, should increase during the
holiday season, he said.
But construction has affected
business because of the limited
amount of space. "Next year, we hope
to be back to normal," he said.
Gorsuch also said he anticipates
some increase in sales as a result of
the exam period. "Usually, sales die
during Christmas because of the early
exam period," he said. "This year, it
is different. The campus will still be
here through the Christmas season.
"This year we are watching to see
what happens," he said. "Christmas
is not necessarily a big increase in
sales because students are not usually
on campus; however, this year is
different," he said.
Belk-Legget Co. assistant man
ager Madeline Sparrow said the
University Mall branch was doing
equally well compared to last year.
"People are buying everything,
including jewelry, clothing and espe
cially housewares," Sparrow said.
And people are not forgetting to
stop in at the smaller gift shops.
"Our sales are up about 35 percent
compared to last year," said Allen
Lyles, owner of Provisions, a gift
shop in University Mall.
and the RHA's requests. "We listen
very carefully to what RHA says,"
Kuncl said. "There is no way to meet
Randolph said the housing depart
ment is just trying to ensure that the
residence halls are filled. "One thing
they had hoped to do was to take
the sophomores, and by guaranteeing
this high-demanding group housing,
they could fill 80 percent of the spaces
right off the bat," he said.
The housing department is making
incorrect assumptions about juniors'
and seniors' housing needs, Randolph
said. "The juniors and seniors who
have to stay on campus would (have
to) be willing to live anywhere," he
said. "I don't think it will work that
Collin Rustin, associate director of
contracts and administration, said
sophomores make up more than half
of the on-campus housing waiting list,
making the combined total of juniors
and seniors a minority of those
waiting for spaces.
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them readmission to the University,
Students who default on their loans
also risk damage to their credit rating,
which will impair their ability to get
future loans, Broadway said. "It will
eventually come back to haunt you
if you default," he said.
A wage garnishment law is also
used in several states, which allows
for a deduction of a portion of the
borrower's wages on a monthly basis
to repay the student loan, Broadway
Students should be encouraged not
to borrow beyond their limits to teach ;
them the consequences of failing tc
repay their loans, Broadway said.
"Don't borrow unless you are willing
to accept the obligation of the debt."
The competition among pizza
businesses in Chapel Hill is good,
Easter said, and Domino's is looking
for ways to improve its business.
"Any competition gives us a reason
to improve our business," he said. But
Domino's does not wait for other
businesses to offer innovations before
coming up with its own, he said.
The Student Stores must also make
arrangements around the construc
tion to accommodate the January - -back-to-school
rush. Student Stores'-"-officials
said they are hoping the . .
construction will be finished in the:
middle of the store so students can :
enter from the front, said Gorsuch. '
Holiday hours are the same until .t
the close of the semester, Dec. 22.
The store will be open again Dec. 27
to Jan. 12 from 7:45 a.m. to 5 p.m.
The textbook department will hold .
the book buyback beginning Dec. 13
in Great Hall to alleviate congestion, .. .
There will also be a sweepstakes ';'
to go along with the book buyback; V
said Gorsuch. Customers get a play-'.;
piece containing a prize for every '1' '
book they sell back. The prizes range .
from small instant winners to several Y;
larger prizes, including a car.
The popular gifts for women are : :
soaps and toiletries, Lyles said. And
the store offers 100 different
imported beers, which are often
popular gifts for men, he said. Other -quick-selling
items in the store are
smoked turkeys, 52 different kinds ' '
of coffees and coffee grinders.
One Chapel Hill shopper, Paige . -Christopher,
said she is spending
more this year. "I'm buying clothes
as gifts this year, and they are
expensive," she said.
from page 1
"The reality is that rising sopho
mores stay on campus, while juniors
and seniors tend to move off cam-,
pus," he said. "We looked at where
the demands are."
A survey conducted by the depart
ment showed that 74.8 percent of the
students favored guaranteed sopho
more housing, Kuncl said. "Even the
majority of sophomores, juniors and
seniors approved this," he said.
The housing department con
structed its proposal after requests
from the faculty and students, Kuncf
said. Also, he said, "there is a large:
base of parental support of the
sophomore housing policy.
Brian Sipe, Scott College governor,'
said the housing department is not"
really addressing the needs of stu-;
dents. "Housing should be open to
everyone," he said.
Sipe said he hopes the advising
board will honor RHA's proposal,
but fears it will discount what RHA
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