Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 188]

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1983]

UNIVERSITY OF ILLINOIS

179

propositions was: Proposition One (96), Proposition Two (207), and Proposition Three (154). T h e chancellor has requested that the Board of Trustees ratify the results of the referendum so that the election for student trustee may be conducted during the Spring quarter. I concur.

On motion of Mr. Howard, this action was ratified and confirmed.

Assignment of National Defense/Direct Student Loans

(14) Under Federal regulations, defaulted notes in the National Defense and Direct Student Loan (NDSL) programs may be assigned to the Federal government for collection after the institution has followed certain prescribed "due diligence" collection procedures. The Board of Trustees approved assignment of defaulted notes in June and July of 1979, in June 1981, and in November 1982. This year, if the assignment is made prior to March 31. an institution can better its default ratio and enhance its eligibility for additional Federal capital contributions for 1984-85. The funds in question are held in trust by the University and loaned to students in accord with criteria established by the Federal government. They consist of Federal capital contributions plus institutional capital contributions equal to oneninth of the Federal contributions. Collections and earnings are added to the funds and the expenses of the program are credited. Under the law, the loan and interest are cancelled in case of death or permanent and total disability. To assist institutions in reducing their current default rates (which in turn will increase their eligibility for future funding), the Federal government has agreed to accept the assignment of notes which have been in default for two or more years if the due diligence collection efforts have taken place. Loans assigned to the Federal government will not be counted in determining the University's default rate; but the government will retain any funds it may recover on the assigned loans, including any portion furnished by the University. T h e value, in terms of increased eligibility for Federal student loan support, is greater than the net recovery anticipated from the University's continued efforts at collection. T h e net assets of the loan fund will remain in excess of the University contribution to the fund. T h e acting vice president for business and finance has recommended that the Board of Trustees approve the assignment to the United States Government of defaulted NDSL notes on which reasonable collection efforts have been made by the University in the following maximum amounts: Chicago Campus Health Sciences Center $ 13,734 (Sloans) University Center $528,478 (358 loans) Urbana-Champaign Campus $ 53,716 (49 loans) I concur and recommend approval.

On motion of Mr. Howard, this recommendation was approved.

Release of University Rights (Exception to the Generaf Rules)

(15) Dr. Constance Curtin, an assistant specialist in education at University High School in Urbana-Champaign, is principal director of two related grants in support of the development of microprocessor-based foreign language lessonware. One grantor, the National Endowment for the Humanities, awarded funds for the development of the lessonware. T h e other grantor, Apple Education Foundation, donated a computer upon which to base those lessons. T h e University has been asked by the author of the lessonware developed to release its rights. T h e assignment of copyright ownership and potential royalties to the author is acceptable under the terms of both grants and has the approval of both granting agencies.