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Show The Dixie Sun Page 2 January 20, 19c inuar T News Editor: Billy Vosburg Budget may increase one key program, cut another By Charles.Dervarics Tribune Media Services President Clinton this month proposed an expansion of the college workstudy program to serve more students, although advocates say the increase may come at a steep price: offsetting cuts in a federal loan program. Clinton on Jan. 9 outlined his college workstudy proposal, which would provide an extra $70 million, or total funding of $900 million in fiscal year 1999. If approved by Congress, the plan would increase the number of workstudy positions to a record level of 1 milLon, Cie president said The program currently served about 945,000 students, according to congressional estimates. The workstudy plan is not just about increasing financial aid, Clinton said. Its about increasing the circle of community service and the win ners circle of opportunity for the future. White House officials have focused on the workstudy program as a way to help meet administration goals that all children read by third grade. Hundreds of college and universities have signed up to participate in this literacy effort, America Reads! with help provided chiefly by workstudy students. But enthusiasm for the workstudy increase was tempered by indications that the administration will propose cuts in Perkins Loans, the notions oldest student loan program. Stafford Loans.Perkins is one of the three campus-basestudent aid programs, along with coland lege workstudy Educational Supplemental Opportunity Grants. d Financial-ai- Perkins may fill a need. Workstudy doesnt help students if theyre already working 25 hours a week, King said. With more students working, Financial aid administrators need flexi- d use all to three flexidesign ble aid packthat ages "Workstudy's not just about increasing financial aid." supplement the larger programs, -- President Bill Clinton officials ibu-tio- federal government provided $135 million in new capital confor tributions the Perkins said. pro- gram. The campus-base- d really work as a unit, said Jacqueline King, director of federal policy analysis for the Council on American Education. Since many students already work to earn money for college, workstudy often is not a viable option, while an extra loan through Perkins operates as a pro-gi'a- Higher education leaders say they Par the administrations 1399 budget will contain no new capital conti for Perkins, a modestly funded program but one colleges rely on to supplement the larger student aid programs such as Pell Grants and bility to provide additional work, grant or loan assistance. This year, the revolving loan program, which means financial-ai- d directors provide loans based on this new capital as well as repayments from past borrowers. The program also offers a lower interest rate than the larger, federally guaranteed loan programs, King said. The new interest Perkins comes after the ! Education Department last f 3y Rai V STAFF reach lion se i'edera unsuccessfully floated a plan 'mg it cut new contributions Perkins. ED backed away fa David the plan after facing critici: will b from education advocates. payofl King and others sc he s the latest attempt to Perkins comes not from ED t from the federal Office and Budge Management which plays a major role crafting the presidents annu budget plan. President Clint also plans to propose the balanced federal budget decades, which puts added pi sure on officials to find cuts n ew initiatives. Concern about future of Perkins Loans m prompt groups to revive the Alliance Save Student Aid, which be:, in 1995 amid concerns that tl new Republican Congre c fii higher-educat- u would. indus legal 1 ory, would read and v non i done v lar aid. askec live c nouns iocur 1 J tE vy i COME TO DIXIE UMPLUGGED 12-- 1 PM IN THE GARDNER CENTER Tj |