University of Virginia Library

Students Find Loans
Easier To Obtain

By CINDI STUART

In response to the
difficulties encountered in
federal loan funding to
students, Congress repealed the
July first New Education Act
on Aug. 19, 1972.

The act was created when
banks found that much money
borrowed for educational
purposes was not so used. To
halt the deprivation of loans
from other desiring students,
the Congress passed the law on
July 1.

This new law required the
educational institutions to
certify the student's financial
need. Confidential statements
were then prepared by students
and sent by the University to a
College Scholastic Service in
California.

However, due to the
minimum delay involved of six
weeks, many students found
the semester approaching long
before they had any knowledge
about their loan.

A major deletion from the
financial need form found in
the new law was that of books,
supplies, and personal
expenses. This expense,
averaged at $500, was
eliminated from all expense
accounts. As a result, few
people could demonstrate
need. Robyn I. Krug, Asst.
Director of University Financial
Aid Office said, "Maybe one
out of ten might have qualified
for need."

The new program also
created problems because it
was enacted so near the
beginning of the school year. A
telegram to President Nixon
summarizing the problems led
to a cancellation of the New
Education Act as of Aug. 19.

If a student presently
desires a federal loan, the
University must certify the
student's enrollment, and the
student must sign an affidavit
describing that the intent of
the loan be for educational
purposes only.