Pittsburg State University - Kanza Yearbook (Pittsburg, KS)

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program, about S6 million has been given out in loans. Accord- ing to Henry Stricklin, loan accounting officer, 52.5 million has been repaid or cancelled by teaching benefits. Until 1972, loans were cancelled after five years of teaching. 53.5 million is outstanding. But this is a realistic figure, says Stricklin, because we allow students ten years to repay the loans. Bor- rowers from the 70's have just begun to repay, and the number of borrow- ers has increased in the last four to five years. The financial aids office does have T some problems. They must make sure that students fill out applica- tions honestly, use the money to fur- ther their educations, and repay the loans. Bloomcamp says that less than 1 per- cent of the students who receive aid use the money incorrectly. Of , course, there is the student who gets the money, quits school, and buys an automobile. But this is the excep- tion. There is a slightly larger problem with students not repaying loans. The default rate at PSU is 7 percent, as opposed to the national default rate which is 15 to 20 percent, according to Stricklin. Bloomcamp believes that default occurs because the programs do not loan money according to credit references or past histo- ry of repayment. Stricklin agrees and adds that sometimes students being buying furniture, cars, and homes during the nine month free period after graduation before the first pay- ment on a student loan is due. Stricklin says that his office, which handles collections, holds a meeting at the end of each semester to explain the repayment system. We try to make the borrowers understand that the money is not a gift, and the government does not owe it to them. After the student leaves school, and the nine month free period is up, the student is billed. If a payment is not received within 30 days, he is sent a reminder. After 60 days, the student receives a stronger reminder and a notice that all records in the registrar's office will be held if a payment is not received. After 90 days, the hold goes into effect, and after 120 days the government considers the loan defaulted and the student re- ceives a letter warning him that the loan will be turned over to a collection agency. Stricklin says that the Board of Regents contracts with two In these inflationary times, money goes fast. Education is important but expensive. Tuition, books, room and board and the cost of living make attaining an education difficult. The financial aids office may be the answer. All students who need aid get it, says one official. collection agencies, Credit Adjustment Company in Wichita and North American Credit Service, Inc. in Kansas City. All Kansas state institutions use these agencies. The agencies keep 30 percent of collected loans. Contacts are made mainly by telephone, and the agencies have the authority to file suit or make a claim or garnish wages. Stricklin says that the agencies rarely take the former students to court, however, because it usually turns out to be a waste of time and money, since the most common reason for non-repayment of loans is lack of money.

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