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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (April 27, 1979)
THE BATTALION FRIDAY, APRIL 27, 1979 Page 3 5 Bryan join forces ities to insure loans By ROBIN THOMPSON Battalion Staff Texas A&M students may soon be Up to take advantage of the Feder- yInsured Student Loan program, i commitment to create a non- .rnfit organization to insure student ®^first presented to the College mion City Council in March, was proved Thursday night. The approval came in the form ot .unanimous vote to draft a joint esolution with the Bryan City louncil to form the organization. ' A similar vote was taken by the Iryan City Council in October 1978 nd passed. rM Logan, director of financial id for Texas A&M University, said in alBattalion story April 19 local ,anks have been unwilling to issue loans because of government tape. The default rate for loans of this type is 20 percent nationwide and 13 percent statewide. But the creation of the organiza tion may take these problems out of the hands of area banks. Plans for design for the organiza tion would be formulated by Hatcher and Co., a brokerage firm from Dallas. If the loan corporation is formed, the board of directors of the organi zation will be appointed by a com mittee formed by the Bryan and College Station city councils. The directors would then issue tax exempt revenue bonds. With the money earned from these bonds, they would buy 90-day-old loans, at the same time assum ing responsibility for the handling and collection of them. If a student were to default on a loan, it would be repaid by the gov ernment, according to the plan, with no risk to local banks. Logan said the loans are designed to meet the needs of the student from a middle-income family. The loans, Logan said, are for students whose parents are having a “helluva time” putting their kids through school. Students from families living in the Bryan-College Station who at tend school elsewhere would also be eligible for these loans. The loans, which do not have to paid back until after the student graduates, can be made for up to $2500 for undergraduates and up to $7500 for graduates. Students can take up to 10 years after graduation to pay back the loan. FOR A NEW DINING EXPERIENCE Come to the big new salad bar in the Sbisa Dining Cen ter Basement. Quality First Open 10:30 a.m.-1:30 p.m Monday thru Friday ALTERATIONS' IN THE GRAND TRADITION OF OLD TEXAS WHERE MOTHER TAUGHT DAUGHTER THE FINE ART OF SEWING — SO HELEN MARIE TAUGHT EDITH MARIE THE SECRETS OF SEWING AND ALTERATIONS. ‘DON’T GIVE UP — WE LL MAKE IT FIT!" AT WELCH'S CLEANERS, WE 'JOT ONLY SERVE AS AN EXCEL LENT DRY CLEANERS BUT WE SPECIALIZE IN ALTERING HARD TO FIT EVENING DRESSES, TAPERED, SHIRTS, JEAN HEMS, WATCH POCKETS. ETC. (WE RE JUST A FEW BLOCKS NORTH OF FED MART.) WELCH’S CLEANERS 3819 E. 29th (TOWN & COUNTRY SHOPPING CENTER) on- nil- lies D- the nda Jte, ign ?at- rt. enate panel against tax, avors school building fund >nth lyat tie’s ned om- ans- lind ittle lital irsh dais will ribe rt. 1 iWS. ex- was i/» ■ United Press International AUSTIN — The Senate Educa- ion Committee voted unanimously Wednesday in favor of abolishing heW-cent state property tax, the ^■eds of which finance state col- :ge I and university building injects. Members also approved, 6-2, a :omplex plan opposed by the schools that would eliminate the tax constitutionally guarantee the schools a multimillion-dollar build ing fond. Tile controversy involves how much money is needed by colleges for construction and whether the University of Texas and Texas A&M University should have increased bonding authority. Also involved is apossible federal court ruling on the constitutionality of the state s 10- centad valorem property tax. The plan would give 22 state col leges and universities $28.3 million construction projects in 1980, and more in following years. It would also authorize the University ofTexas and Texas A&M University systems to borrow and spend an extra $110 million. Jut it is less than school officials proposed and considerable con troversy remains about how the funds would be allocated. Sen. A.R. Schwartz, D-Galveston, urged the committee to approve the proposal as a vehicle to bring the controversy to the Se nate floor for a vote. “It’s not what the colleges want the the For the Dto ;nts ifla- em- but we re at a critical time. We’re running out of time,” Schwartz said. “We’ve got less than 30 working days left in the legislative session.” The panel also voted unanimously for an alternative proposal to simply abolish the state property tax with out providing for a special fund to provide building money for colleges and universities. Schwartz said he believes federal courts are waiting to see what the Legislature will do before ruling un- The plan would give 22 state col leges and universities $28.3 mil lion for construction projects in 1980 and more in following years. It would also authorize the University of Texas and Texas AirM University systems to borrow and spend an extra $110 million. constitutional the state s 10-cent ad valorem property tax on grounds that assessments are not uniform across the state. The constitutional amendment backed by Schwartz and Sen. R. L. Vale, D-San Antonio, would give the Legislature control over how funds are allocated among the 22 colleges and universities that are not part of the University of Texas or Texas A&M systems. Current provisions of the Texas Constitution allocate proceeds of the 10-cent ad valorem tax to a spe cial fund. The 22 colleges are au thorized to issue bonds against fu ture proceeds of that fund to finance construction projects. Because the tax is under attack, however, there is considerable doubt the schools will ever see the $48.7 million expected to be gener ated by 1981. Critics say the tax fund has gener ated more building money than the colleges need. The amount of money to be allo cated for college construction projects under the Schwartz-Vale proposal would be set at 5.1 percent of the amount appropriated statewide to operate the institu tions. But the Legislature could limit spending on building to less than that amount. The constitutional amendment also would add nine components of UT and Texas A&M to the list of campuses eligible for building funds from the $1.1 billion Permanent University Fund and increase by half the amount of Permanent Uni versity Fund-backed bonds those schools can issue. Sen. Oscar Mauzy, D-Dallas, said he opposed the Schwartz-Vale pro posal because he disapproves of constitutionally dedicated funds and does not favor giving UT and Texas A&M increased bonding authority. 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