Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 295]

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284

BOARD OF TRUSTEES

[June 18

diligence" collection procedures. If done prior to June 30, 1981, an institution can better its default ratio and enhance its eligibility for additional federal capital contributions for 1982-83. The loan funds in question are held in trust by the University and loaned to its students in accordance with criteria established by the federal government. They consist of federal capital contributions plus "institutional" capital contributions in an amount equal to one-ninth of the federal contributions. Collections and earnings are added to the loan funds and 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 occurred. 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 thereof furnished by the University. The value in terms of increased eligibility for federal student loan support to be derived from the assignment of these defaulted loans to the federal government is greater than the net recovery which might be anticipated from the University's continued efforts at collection. The executive vice president recommends that the Board of Trustees approve the assignment to the U.S. government of defaulted NDSL loans on which reasonable collection efforts have been made by the University in the following maximum amounts: Chicago Circle campus $923 115 (1,059 loans) Medical Center campus $ 38 372 ( 24 loans) I concur.

O n motion of Mr. Howard, this recommendation was approved by the following vote: Aye, Dr. Donoghue, Mr. Forsyth, Mr. H a h n , Mr. Howard, Mr. Madden, Mr. Neal, Mrs. Shepherd, Mr. Stone; no, none; absent, Mrs. Day, Governor Thompson. (The student advisory vote was: Aye, Mr. Maltese, Mr. Peterson, Mr. Silverman; no, none.) Contracts for Educational Services, College of Medicine

(16) The chancellor at the Medical Center has recommended that the University continue to contract for educational services on behalf of the College of Medicine in FY 1982. Such services provide assistance in the conduct of the medical education programs of the College of Medicine. It is proposed that contracts be executed between the University and the institutions and organizations listed below: Estimated Peoria School of Medicine Internal Medicine Group of Peoria, S.C. Peoria Radiology Associates Hansen-Seedorf Radiological Group, Ltd, The Medical and Surgical Clinic, S . C . The Medical Radiological Group Methodist Medical Center of Illinois.. . . Peoria-Tazewell Pathology Group, S . C R.O.L. Clinic, S.C St. Francis Hospital Medical Center. . . . $ 15 16 3 6 7 16 43 5 44 765 323 295 510 706 505 551 100 883