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Columbia Chronicle College Publications Columbia College Chicago Digital Commons @ Columbia College Chicago Columbia Chronicle College Publications 11-2-1987 Columbia Chronicle (11/02/1987) Columbia College Chicago Follow this and additional works at: http://digitalcommons.colum.edu/cadc_chronicle Part of the Journalism Studies Commons This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License. Recommended Citation Columbia College Chicago, "Columbia Chronicle (11/2/1987)" (November 2, 1987). Columbia Chronicle, College Publications, College Archives & Special Collections, Columbia College Chicago. http://digitalcommons.colum.edu/cadc_chronicle/231 This Book is brought to you for free and open access by the College Publications at Digital Commons @ Columbia College Chicago. It has been accepted for inclusion in Columbia Chronicle by an authorized administrator of Digital Commons @ Columbia College Chicago. ·Futures hazy after market crash Stock anxiety Student loans hits colleg~s . · not affected yet By Mike O'Keeffe btlhon. executtve vtce chancellor for as- By Penny Mateck President Reagan have seen a hike in re­ • set management Michael Patrick said. lated loan fcc:... (CPS) - Colleges aren t sure what But because colleges play the stock The recent plunge of the Dow Jones the stock market crash of Oct. 1~ - or market carefully and conservatively. industrial avcmgc will have little or no An origination fee. a nat fcc every student must pay when taking out a the wild up and down swings that are said Jack Cox of the National Associa- effect on Guamntccd Students Loans loan. has risen from five percent to 5.5 likely to follow it - will mean to their tion of College and University Business (GSL's) students arc currently receiv­ percent. This money is currently being health. Officers (NACUBO). the impact was ing. school and local officials said last used to help reduce the fedeml deficit. Campuses. of course. typically own less than other investors suffered. week. portfolios full of stocks . and use the Cox and other observers predicted "The prime rate for student loans is " The higher fee is due to the Gmmm­ profits to pay for new buildings and the market would rebound - as it did fixed. so they're really not affected ... Rudman cut President Reagan made re­ other big-money conslruction projects. during the days following the crash - said Dawn Rudolph. loan closer for Bell cently.·· said Clement . Schools with large endowments and Federal Savings and Loan Association. and offset the losses suffered on Oct. 19 JohnOiino The money collected from these fees portfolios. moreover. have in recent and during the tumultuous market drops Since most student loans are arranged is usually used to underwrite the na­ years been using their stock profits to But NACUBO's Cox saw a silver lin­ through private lending institutions. that preceded it. tional GSL progmm. But from Oct. 20 provide financial ,aid to students frozen ing: business and the federal govern­ they are considered private monies " I don't sec an appreciable impact on to Nov. 20 Reagan has decided to chan­ out of federal aid programs l;>y . budget ment . he reasoned. would invest more guaranteed by the federal government endowments. ·• Cox said. nel the fee money to help reduce the def­ cuts. in higher education to help pull the na­ through the national GSL program, ac­ Colleges. Cox added. invest in l'Clli icit instead . .- ~~o.fftews worried.. estate, tru.-Munds and-bonds-as-well as ·tion out of a recession. cording to Bob CTcment. director of wealthji eonlrlbiltors might less " Higher education is a good invest­ The fee. which may rise even higher ~ become stocks. agency relations for the Illinois Guaran­ generous, no one was predicting the "With endowments so widely diver­ ment especially during hard times.·· he teed Student Loan Program. if Congress and the Reagan administr•­ eollaJ>se - which in percentage terms sified. the stock market should not tlave said. because education and retraining But while no immediate problems tion doesn't find other way• to reduce was worse than the great crash of 1929 much of an impact on institutions ... become even more essential. face students. the institutions themsel­ the deficit. does not apply to students that ushered in the erooomic depression Stllnford. however. is thinking of in­ who have received any part of their loan Cox said. ves may feel the bite in the future. of the 1930s - would hurt students or before the date the fee was mised. Oct. Things might be different for faculty vesting more in stocks. now that the "There will be some ripples in corpo­ campuses in the near future. members. who regularly pay part of Oct. 19 cr•sh has let some share prices rate support for education:· said John 20. "The university will wait forthe mar­ their current salaries to a pension fund. fall low enough to become bargains. Olino. Columbia's financial aid direc­ In an effort to eliminate additional ket to settle down before making any which in tum invests heavily in the Bycr.; said. " "" have the cash. Now tor. "This (the drop in the stock market) fees. Illinoi• dropped it> one percent in­ conclusions." said Stanford Univer.;ity may be the time to usc it." stock market. will affect their giving to institutions •umnce fee on GSL's last year. Provost James Rosse in a '1atement typ­ Most observers say the stock market "Not many states other than Illinois • The fund. of cour.;c. ~scs the profits and their making large donations to en­ ical of most college attitudes. should not have an immediate impact have done that.·· Clement said. from its investments to make monthly dowments. They may look twice." When the Dow Jones industrial aver- on tuition. salaries and other educa­ The one percent state fee wa• used to pension payments to retired faculty Although students may be one of the - age plummeted 508 points Oct. 19. tional costs. luckiest groups to have survived the help pay other students defaulted though. the value of many stock portfo­ member.;. Continued on Page 3 stock market crunch. recent actions by loan•. lios held by schools across the nation A long-term market crash theoreti­ also fe ll precipitously. cally could endanger the payments. Stanford's $1.5 billion endowment But Cla ire Sheahan of the fund - " took a $200 million hit" as a result of called the Teachers 1nsumnce and An- nuity Association-College Retirement Dukaki.s' quiet campaign the crash, said spokesman Bob Byers. The University of Texas system's en­ . Fund (T1AA-CREF) - said " it's too dowment fell from $2.9 bill ion to $2.6 soon to call the lbng-terrn or short-term impacts. In recent weeks we became running tough in Midwest more cautious as we felt something coming." By lee Bey Inside T1AA-CREF. criticized in recent Democratic presidential hopeful years a.'i too conservative. didn't believe Mass. Gov. Michael Dukakis might the "sustained rise in the stock market Vice-mayor brings have a better th;n expected chance of over the last few years could be sus- . gaining support in the Midwest against talned," Sheahan said. urban politicsto Sen. Paul Simon (D-Ill). thanks to his The, education pension fund also low-key nature, said a visiting spokes­ Columbia boasts diver.;c holdings. Although it did man from the Dukakis campaign. PAGE3 not profit as much as some members " When Dukakis appear.; in Iowa and hoped for during the stock market boom Ncbmska. or other parts of the Mid­ of recent year.;. it f!nds itself in good west. he gets a warm welcome and is Legendary mobster shape now. "If playing it conservative very popular there." said Willia m gets a shot onstage in means playing it responsible. we're O'Connor. spokesman for the Dukakis glad we've played it conservative:· Illinois campaign office. O'Connor Sheahan said . 'Alphonse' spoke to a U.S. Foreign Policies class While Oberlin College endowment taught by Ron Freund here at Columbia manager David Maxson figured a mar­ PAGE6 recently. O'Connor also said the candi­ ket rebound could help the school re­ date is ex txct~d to make hig gains in coup its one-day stock losses of $25 Illinois. • million - out of a total of $200 million Sports " He sta nds a chance here even with it had invested - he worried the mar­ Simon.·· O'Connor said. "People in the Loyola Ramblers ket's ongoing un<-crtainty could have "a state identify with him because he is an chilling e ffect on donations a nd long­ issues candidate." runnin' with tough term commitments by contributors." The Midwest leg of the Dukakis "As (contributor.;') pcr.;onal wealth campaign will pmvc to be a very impor· new defense goes down:· agreed Washington Uni­ t~nt one in the months ;.~head . l ow;.~ will versity of St. Louis treasurer Jerry William O'Cunnor, lllinnl"i campaign of Mass. Go\'. select the fi~t delegates to the Dcmo- PA~E 12 Woodham. "donor.; may be less willing Michael Dukakis, speaks to a political science class about his candidate's Contmued on Page 3 to make donations to the univcr.;ity." issues. - PAGE 2 Nowmhl•r 2, l'Hli \OllJMRIA CHRONIClE 'I \ \" News Briefs Coeds get Ollie's view Park District offers weight training class (CPS) - L1. Col. Oliver Nonh is a more convincing argumem for Contra Conservatives of Texas. It drew about A four-wcckcour.;e in weigh11raining and body condilioning will be offered getting a second cha nce o n the nation's aid I han docs the president. 100 s111<lents. al 1hc Richard J. Daley Bicenlennial Plaza. 337 E. Randolph in Granl Pari< college campuses.
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