Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 108]

EXTRACTED TEXT FROM PAGE:

1984]

UNIVERSITY OF ILLINOIS

97

November 30, 1984, an institution can better its default ratio and enhance its eligibility for additional Federal capital contributions for 1986-87. The funds in question are held in trust by the University and are loaned to its students in accord with criteria established by the Federal government. They consist of Federal capital contributions, plus institutional capital contributions equal to one-ninth 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 canceled 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 been made. 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. The 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. The net assets of the loan fund will remain in excess of the University contribution to the fund. The vice president for business and finance has recommended the assignment to the Federal government of defaulted NDSL notes on which reasonable collection efforts have been made by the University in the following maximum amounts: Chicago campus $414 998 (457 loans) Urbana-Champaign campus $ 46 640 ( 40 loans) I concur. O n m o t i o n of M r . H o w a r d , this r e c o m m e n d a t i o n w a s a p p r o v e d . By consensus, t h e board agreed t h a t o n e roll call v o t e w o u l d be taken and considered t h e v o t e o n e a c h a g e n d a i t e m nos. 8 t h r o u g h 17 inclusive. T h e r e c o m m e n d a t i o n s were individually discussed but acted u p o n at o n e time. ( M r . L o g a n left t h e m e e t i n g at this time.)

(The record of board action appears at the end of each item.)

Amendment of Grant Agreements, Willard Airport

(8) The Federal Aviation Administration and the Illinois Department of Transportation, Division of Aeronautics, have informed the University of the status of funds in various grants dating from 1977. They have recommended that the University submit requests to amend the scope of work for the grants in order to effectively use remaining funds and to close out those projects which were underfunded. The projects, status, funds available, and recommendations for grant amendments are as described in the attachment. (A copy is filed with the secretary of the board for record.) The president of the University, with the concurrence of the appropriate administrative officers, recommends that the University submit requests for grant amendments as indicated. O n m o t i o n of Mrs. D a y , this r e c o m m e n d a t i o n w a s approved by t h e following v o t e : Aye, M r s . D a y , D r . D o n o g h u e , M r . Forsyth, M r . H a h n , M r . H o w a r d , M r . M a d d e n , M r s . S h e p h e r d , M r . S t o n e ; n o , n o n e ; absent, Mr. Logan, Governor Thompson. ( T h e student advisory v o t e w a s : Aye, M r . L a m m , M r . P i t t m a n ; n o , none.)