The Rice Thresher (Houston, Tex.), Vol. 74, No. 16, Ed. 1 Friday, January 16, 1987 Page: 1 of 20
The following text was automatically extracted from the image on this page using optical character recognition software:
Volume 74, Number 16
Rice's You-Choose-the-Adjective Newspaper
January 16, 1987
may cut loan budget
bjr Mtefcid liplwil
The Reagan administration last
week proposed to cut federal
student financial aid nearly in half
as part of the 1988 budget
President Reagan submitted to
As a primary method of
achieving the cuts, the President's
budget calls for a new student loan
program which will shift the costs
of such loans from the federal
government to the students. The
program, although not yet
approved, has already spurred
controversy among policymakers.
In a televised speech, Education
Secretary William J. Bennett
explained the logic behind the
"Switching the interest burden
from the government to the
recipient would make it possible to
offer large loans with longer
repayment periods," Bennett said.
"The college graduate will earn
$640,000 more than the high
school graduate over his lifetime.
It is only sensible and fair that the
beneficiary pay the cost, rather
than the taxpayer."
Under current loan programs,
the government pays loan interest
while the student is in school. The
Contingent Loan plan, if
approved, will change that:
interest will accumulate
throughout the student's schooling
at the Treasury Bill rate plus three
Bennett said an advantage of the
program is that the repayment
period after the student graduates
will be much longer than the 10-
year period given by other
government loan programs.
Repayment would be linked to the
student Is later income, in a manner
not yet specified.
Congress has already adopted
the plan on a limited basis. The
loans will be offered at ten schools
next year in place of National
Direct Student Loans to
undergraduates. The Administra-
tion's budget calls for broadening
the plan to include 1500 schools
and both graduates and
undergraduates in the future,
eliminating the NDSL program
Rice will not apply to be one of
the ten schools to begin the
program, according to G. David
Hunt, financial aid director. He
said Rice would not qualify for
selection since the information he
received indicates selected schools
must currently be using all federal
"Nobody's even thought about
the mechanics yet," according to
Hunt. "For instance, someone's
got to determine in what way the
repayments will be based on the
(beneficiary's) salary. It may be a
conflict of interest for the schools
to do so, since they are interested in
receiving alumni contributions."
Hunt also pointed out that
Bennett's figure that a college
degree is worth $640,000 is merely
an average, and actual salary
figures vary greatly from person to
The Administration's effort to
increase student debt comes in the
aftermath of a major report on
student debt released two weeks
ago by the Joint Economic
Committee of Congress.
The report warned that student
borrowing under federal programs
has tripled in the last 10 years,
raising concern that debt would
overburden a generation. In the
same period, the report said,
Federal grants and scholarships,
which don't need to be paid back,
declined by 62 percent.
Robert Atwell, president of the
American Council on Education,
which represents all colleges and
universities, recently warned the
Administration about increasing
"The substitution of loans for
grants and the resulting increase in
student indebtedness ought to
concern us as a society," Atwell
said. "Before we move any further
toward loans, we must examine
what we're doing. It's bad public
policy to have a major shift in that
Reagan has proposed these cuts
under pressure to slow down
federal spending and reduce the
federal deficit to target amounts
set by the deficit reduction bill.
Under Reagan's 1988 budget,
student financial aid will be cut
from $8.2 million to $4.5 million,
part of a $1.2 billion cut in
However, Hunt noted
optimistically, Congress has
consistently rejected proposals for
deep cuts in student aid from the
Reagan Administration, as well as
cuts proposed by other presidents.
Campanilm editor Harold Tumor listens to the yearbook'i finances discussed
Senate enacts election reform
by Wendy Ertanan
The Student Association Senate
voted on the proposed reform of
the electoral by-laws and debated
the rules covering the profit from
the Campanile at its first meeting
of the semester Monday.
The Senate approved the
changes in the electoral by-laws
proposed by the Election
Committee unanimously and
without discussion. The changes
approved were those discussed by
the Senate last semester.
The approved changes will alter
some of the electoral processes in
future elections. Two changes are
particularly significant. One
requires the SA Senate to meet the
Monday before any election to
app/ove the ballot. At this
meeting, "any candidate ruled
ineligible by the election
committee may appeal his
eligibility to the Senate."
The second major change covers
contested elections. Jurisdiction
over such elections is placed in the
hands of the University Court. The
court may order the Senate
Election Committee to rerun a
election declared invalid.
SA Parliamentarian George
Wills believes that "the new
document clears up a lot of
ambiguities...it should cover most
situations under which contro-
versy could arise."
In addition to the electoral by-
law changes, the Senate approved
the proposed salaries for the staff
cr the 1986 Campanile. This minor
action, however, sparked a
prolonged debate over the issue of
the by-laws covering this practice.
After a reserve fund for the next
year is set aside, the staff of the
Campanile is paid with the
remainder of the profit made from
selling advertising and parent
cards. The by-laws place a cap on
the amounts of these salaries. In
the recent past, the Senate has
waived these by-laws. At this
meeting, several senators
expressed concern that this
Its number's up
SJO MlSSfQUE BY
*0801 TV J0*£
A 8J8T8&AY NWHV FOR
NOT CHOC 4 DOXXAD&f
A vagrant stands by the recently-dosed Numbers club
practice could lead to problems if a
Campanile editor became more
concerned with the profit than
with the book.
The senators made several
suggestions in response to this
issue. One proposal would keep
the salary cap but as a percentage
of profits rather than a set figure.
Lovett President Anna Little
approves of this salary cap but
emphasizes that an "ample amount
should be allowed for it since the
editors put in a lot of time without
getting much credit."
Sid Richardson President Guy
Hardin proposed "placing equal
emphasis on salaries and the
reserve fund...balancing persona!
considerations with those of the
book." Hardin, who raised the
question in the Senate initially,
said "the whole arrangement needs
to be looked into. In the past it was
approved without much thought
to priorities and percentage
distribution. It's something the
students need to be aware of."
In further business, the Senate:
• announced that they will now
meet every Monday.
• approved the constitutions of
the Owen Wister Literary Society
and Gays and Lesbians of Rice.
• approved funds to print
addendums to the directory.
• appointed Kevin Gass, Chris
Wright, and Andy Karsner to a
committee to obtain bids from
banks on the cost of an
automatic teller machine on
e Name our new comic, p. 20.
e Briefs, p. 8.
e Shoes, p. 17.
e Volunteers fully covered, p 8
Here’s what’s next.
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Newspaper.
Greene, Spencer. The Rice Thresher (Houston, Tex.), Vol. 74, No. 16, Ed. 1 Friday, January 16, 1987, newspaper, January 16, 1987; Houston, Texas. (texashistory.unt.edu/ark:/67531/metapth245652/m1/1/: accessed December 12, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Rice University Woodson Research Center.