University of Virginia Library

Council Urges Grant Appropriation Support,
Loan Program Provides $1500 Per Year

By ALAN JACOBUS

Student Council yesterday
sent a telegram to Seventh
District Congressman J.
Kenneth Robinson urging him
to vote in favor of
appropriating over one million
federal grants to students of
$200 to $1,400 beginning in
1973.

The grants are the provision
of the Basic Grant Program and
other educational programs.

Joseph P. Cosand, deputy
commissioner for higher
education for the U.S Dept. of
Health, Education and Welfare,
recently sent letters to various
institutions and lending
communities explaining the
effect of new emergency
legislation upon the
Guaranteed Student Loan
Program.

The legislation established
new conditions under which
the federal government would
pay interest on student loans.

The program was
re-established Aug. 19 to fit its
former guidelines when
President Richard M. Nixon
signed the legislation.

An additional regulation
was added to the program
requiring: students to submit a
notarized affidavit (Section A
of OE Form 1260) asserting
that the loan proceeds are to
be used for educational
purposes only.

The Education
Amendments of 1972 were to
bring significant changes to the
program. However, these
amendments went into effect
soon after they were enacted,
resulting in confusion and a
delay of loan activity.

This delay occurred prior to
the beginning of a new
academic year when students
needed the loans. The
President asked for emergency
legislation from Congress. The
program that was instated, the
same program that existed
before the changes were to be
made, will be effective until
March 1, 1973.

The program allows a
University student a
guaranteed loan of up to
$1,500 per academic year.
Loans are offered up to five
years.

If the student's adjusted
family income is less than
$15,000 per year, the federal
government will pay the
interest on the 1 loan until
the beginning of the repayment
period.

This period begins nine to
twelve months after the
student leaves school or
completes his or her course of
study.

The student may take up to
five to ten years to repay the
loan, paying minimum
monthly deposits of thirty
dollars.

Loan repayments may be
deferred for up to three years
if the student is serving in the
Armed Forces, Peace Corps, or
VISTA.