University of Southern California
Volume LXXII, Number 69________________________________________Los Angeles, California	Friday,	July	15,	1977
Banks more cautious with student loans
All for one and all together
Summer
Trojan
by Eric Sibley
The Federally Insured Student Loan program (FISL) will again be available for the upcoming semester. Most lending institutions, however, will be granting new loans only on a more selective basis.
The FISL program was created in 1965 by Congress and was first put into use the following year.
“As a matter ofnational policy the guaranteed student loan program was devised to create an opportunity for students to pursue their secondary careers and to have the federal government stand as collateral," said Charles Banks of the Health, Education and Welfare department (HEW).
Under that guarantee the government must pay back the lending institutions if a student defaults on a loan and must pay the interest for students of families with an income under $25,000.
HEW has watched over the program since its inception and says that during its ten-year existence about 10 billion dollars has been loaned to 10 million students.
HEW has also kept a record of the amount of money lost by the program because of students who have defaulted on their loans.
The default rate is running at 18% throughout the nation, which means that the government must pay for 189c of the loans.
This federal money, however is not lost forever. “In the past three years there has been an accelerated effort, a more aggressive effort,” he said, “to locate the defaulted students. And we (the government) are running now at the rate of about 4 million dollars in collected loans per year,” Banks said.
HEW also said that 4% ofthe 18°Ic who defaulted on their loans did so by filing bankruptcy right after they got out of school.
In September, a law will go into effect which prevents students who have loans from declaring bankruptcy for at least five years alter they get out of school.
“We have closed one loophole that some students have been usingas a default avenue,” Banks said.
Lending institutions have been losing money also, despite the belief that the government picks up the tab. They too have been reviewing their own student loan programs and some have even discontinued it.
“When we went to the government to realize a payoff—because they had guaranteed the loan—we got caught up in so much red tape and so much delay that six or seven months later we were still looking to get paid off. So we decided that until the program was better situated we
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Memorial services for Lillian Steuber Goin. an internationally known pianist and professor here for 31 years, will be held Sunday. July 24 in Hancock Auditorium. Miss Steuber died June 24 at LaVina Hospital in Altadena after a lengthy illness. She was 68.
Friends of Lillian Steuber are contributing toward the purchase of a concert grand piano in her memory for use at major recitals presented by the School of Music.
Miss Steuber was distinguished not only for her work at the university, but. like many USC faculty members, internationally as well.
At the age of fifteen, she
Memorial services set for piano prof
by G.S. Rhee
Although it is on ly five years old, the Joint Educational Project (JEP) has a name for itself in the community.
Recently, the program received the L.A. City Board of Education’s prestigious 1976 Bell Award for outstanding service to the city, and four of its members were recognized individually by the L.A. City Human Relations Commission. Lucia Rodriquez, Steven Alves, Julie Veitch and Robert Ahlke were honored with the Commission’s Certificate of Merit for service “in the advancement of human relations in the L.A. COMMUNITY.*4
JEP enabled these four students to contribute to the surrounding neighborhood by giving them and over 1,000 of their colleages the chance to go into nearby community elementary and secondary schools last semester to act as tutors, conductors of mini-courses, teachers’ aides, and Pals. While the first three jobs are self-explanatory, the fourth deserves some comment.
A Pal, as Barbara Gardner, originator and Director of JEP, has said, is a “friend ... plays games, shares ideas and fealings, and sometimes helps his
or her friend with school work.”
What made these four students different from other Pals; worthy of being nominated for the awards by JEP staffers? They “went above and beyond the call of duty,” says Beverly Barnwell, JEP coordinator at Foshay Junior high School.
“For example, Robert Ahlke put in much more than the required one hour per week with the orphan student that he was assigned to, taking the child to cultural and athletic events and sometimes simply for walks. It should be noted that a JEP assignment may be done during regular class time or “offered as an optional alternative to part of the regular course curriculum,” Gardner said.
But all connected with JEP can be seen as a winners to the degree that they get a meaningful, rewarding experience out of it. The teachers at the eight schools that are participating obtain tutorial aid for students on a one-to-one basis for regular school studies, the JEP volunteers learn about the community first hand and get to apply knowledge gained in university classes for credit, the USC faculty gets a chance to share its vast knowledge with
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THREE'S NO CROWD — The JEP program promotes friendship blind to age, race, sex, and certainly, educational level. The program had over 6,500 USC students helping 6,000 pupils last semester.
FISL FISSLES OUT? — Prices go up, the stock market goes down, and the students are afraid to graduate because then they have to start paying off theii^various educational debts. Now, with banks
LAPP CRACKS DOWN
becoming more cautious in awarding Federally Insured Student Loans (FISL), prospects look even bleaker, and these students don't appear too happy about it.____________________________________________________
Jaywalkers cited near
by Barbara Korthuis
An increasing number of student and faculty pedestrians have been ticketed recently by the Los Angeles Police Department for jaywalking.
The most frequent location for the violation has been Jefferson Avenue between University Village and campus.
LAPD Southwest Traffic Division Officer Blum said, "Before we began beefing up our enforcement, many more people were hit by cars. The vehicle versus pedestrian (accident)was the major injury factor of all vehicle accidents. It is our goal to reduce the number of serious injury accdients.”
According to the LAPD, jaywalking is considered an infraction and a moving violation.
The LAPD is also cracking down on motor vehicles not stopping for pedestrians in crosswalks. Blum estimated that five to ten times more citations are issued to drivers failing to stop for pedestrians than to pedestrians who do notyield the right-of-way to drivers. Legally, however, pedestrians have access in a marked crosswalk or in an unmarked crosswalk in an intersection. If not in one of these two locations, the motor vehicle
has right-of-way.
Blum said that many people are apparently unaware that jaywalking is a violation, but “it is everyone's responsibility to know what the Vehicle Code laws are,” he said. He suggested that if people did not learn the laws from high school driver education or driver training classesthattheyshouldenroll in a traffic class.
William Burke, captain of campus security, said his department has no jurisdiction on the streets surrounding campus, which are patrolled by the LAPD. His department feels that jaywalking is dangerous, especially on the busy streets near campus, and it supports police enforcement. However, jaywalkers on campus are not cited.
Burke said that the LAPD has been citing jaywalkers near the university in all of the seven years he has been here, but that the number of citations has probably increased since the University Village was built.
He said that the city plans the streets in the area, and it was the city planners who designed Jefferson without a crosswalk between McClintock and Hoover. Burke suggested that all would-be jaywalkers “walk to the
campus
nearest crosswalk” to avoid being cited.
He added that, in the past, when a crosswalk has been necessary, the police department has undertaken a special project to have it put in. The crosswalk on 32nd Street became necessary when pedestrian traffic increased between USC and the Row.
Lillian Steuber Goin