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Caption: Board of Trustees Minutes - 1986
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344 Name Thompson, James R. Day, Galey S. Gravenhorst, Susan L. Hahn, Ralph C. Logan, Albert N. Madden, Dean E. Smith, Ann E. Wall, Bernard T. Becker, Scott L. Lamm, Kevin K. BOARD OF TRUSTEES [July 18 Citizenship United States United States United States United States United States United States United States United States United States United States Title Governor of Illinois Trustee Trustee Trustee Trustee Trustee Trustee Treasurer Nonvoting Student Trustee Nonvoting Student Trustee Be It Further Resolved: The following officers of the Board of Trustees and of the University of Illinois be and hereby are designated as the managerial group having the authority and the responsibility for the negotiation, execution, and administration of User Agency contracts and all of the duties and responsibilities pertaining to the protection of classified information: President, Secretary, and Comptroller of the Board of Trustees of the University of Illinois; and President, Vice President for Business and Finance, and University Counsel of the University of Illinois. O n m o t i o n of M r . F o r s y t h , t h e f o r e g o i n g r e s o l u t i o n w a s a d o p t e d . Assignment of National Defense/Direct Student Loans (20) 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 has approved the assignment of defaulted notes several times over the last few years. This year, if the assignment is made prior to November 30, 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 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 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 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. 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. T h e vice president for business and finance has recommended the assignment of defaulted NDSL notes on which reasonable collection efforts have been made by the University in the following maximum amounts: Chicago campus $354 676 (331 loans) Urbana-Champaign campus 47 600 ( 36 loans) I recommend approval. On motion of Mr. Forsyth, this recommendation was approved.
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