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6The Daily Tar HeelWednesday, December 7, 1988 Despite default record, soarainiteed stydeinit loainis still available By CRYSTAL BERNSTEIN Staff Writer 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 Staff Writer 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 cards. 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. Rosemary St. 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 Carolina Students1 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. LOAN RATES Share Secured 10.00 Co-Signer 13.00 Travel 16.00 Rates subject to change daily. CSCU is not affiliated with UNC-CH. The plane trip home at Christmas had previously been a negative experience for Abigail. . . NOT ANYMORE. Free gift vrcpping Free chipping- Store Hours M-Sat 9:30-8 Sun 10-5 m5 Call to order, or for free catalog of find Carolina Sportswear. Catalogs shipped immediately order up til Dec 19 guaranteed for Christmas! It's Back! Our Biggest Sale 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 people." Between 93 and 95 percent of the money loaned has gone back into the system, he said. processing. 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. O Carolina Y r i d e E. Franklin St '942-0127 Co) of the Yeak! Thursday & Friday JfA f3 tf Cn) 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 did. 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 Construction causes By SIMONE PAM Staff Writer 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, said. The decrease has affected the main floor area of the store and the Bull's Head Bookshop. "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 Staff Writer 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 said. 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- Bar & Tuesday & 7 Flavors $1.50 per shot 149V2 Franklin Street under Town & Campus 942-4963 Able toiioId&Qtirown with Dirtt-siiedffilntSMiants? .A:x-:x:xxr .x x .:: : :oc Xi-x-w v-w:----'-;'a. Mh fliuiiuita mm m i-.a.x mmm. urn ! :! & : il- tv.: : nk . X.' x-xx-: xx-:x .!x ;x-o: ;c 'X, RESIDENT ADVgpSLlprs counselors, anU rofe modellpfifted 12-16 year- bldsi OnSukes East CamDudan'd'IVIarine Lab. i-x ; ::v f4 TEACHING ASSISTANJSrarsdubte and undergraduate Students needed for 3 or 6 weelyposttidns. Variety of sLiDject tbught. Contact Leslie1Thpma$ 684-3847 Applfcption tdline January 20 !J Duke Universtjy k jTalenlclQiitmcatiah Program" DukJJplverslty Is en'qifZil opportunityaffrlmatlve action employer. 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 weeks. 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 said. 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 said. Grill Wednesday Are vou.-.A FastdtBan a midnight pipfelivpry... More powerful than a hyperac Wo adolescent... ! r x xi x: x-.: x xx xx xv yas-AUGusT mmm ' jr .'.vw'.'.v; . 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, he said. 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. Mousing and the RHA's requests. "We listen very carefully to what RHA says," Kuncl said. "There is no way to meet everyone's needs." 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 way." 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. See something newsworthy! Call 962-0245 .w ;;. ... . ;x':xx"vx:;: XXs xx XXXV: X XVX" XSv. W. NN? V-? Nr.? W XV NV W -.V SSJ i xvx-'-, xn-xx-x-vX"" xy-xx-X'X'.v- w x :x xx xx x x x x XV-XXXXXxxv..:y i t i ' i x-x- s- .vv . .v XV .o,- ;t ,'.,;.',a,..'.,.iV..'-1..'.,;.'.,..'.v.v " x Sx :: xx x xx x j -XvX-W-X-X'I-XXX- ''"v '? rAS '''V ? them readmission to the University, Morris said. 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 said. 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, .. . Gorsuch said. 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 says. HelpYourselfTo Self-Service Copies. NO COINS Open 24 hours I Happy hour 9PM-7AM copies 4-12 7 Days A Week I cents It's on time. Or it's on us. 105 N. Columbia St. 933-2679 r, n'S. - ! 1 a: ' r- 4
Daily Tar Heel (Chapel Hill, N.C.)
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Dec. 7, 1988, edition 1
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