Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 532]

EXTRACTED TEXT FROM PAGE:

1963]

UNIVERSITY OF ILLINOIS

487

Funds are available in the budget of the Division of Services for Crippled Children.

On motion of Mr. Williamson, authority was given as requested.

UNITED STUDENT AID FUNDS, INCORPORATED (10) United Student Aid Funds, Incorporated ( U S A F ) is a private non-profit corporation established to assist needy students at institutions of higher education to obtain low-cost loans from local banks. It raises, holds, and invests reserve funds which are used to match institutional funds to underwrite these bank loans. Its national center endorses the loans; it serves other agencies interested in endorsing student loans, both private and public in character; and it offers consulting services at no cost to banks, foundations, and others interested in providing low-cost student loans. Under the plan, the first $1,000 deposited by an educational institution for this purpose is matched by U S A F in an equal amount, and the total is placed in its reserve fund. Based upon this reserve of $2,000, the sum of $25,000 in student loans may be obtained by eligible students from local banks at a 6 per cent simple interest rate, such loans being endorsed by U S A F . Deposits placed in the reserve by the educational institution in addition to the original $1,000 may be matched in whole or in part, and the aggregate sum creates a reserve for endorsed loans of twelve and one-half times the reserve. At any time that a deposit by an educational institution is not being used for guaranteeing loans, it may be withdrawn from U S A F upon thirty days' notice. The educational institution has no responsibilities or obligations in making or collecting the loans other than to certify that the student is enrolled and is in good academic standing, and to report any change in his status. The responsibilities of making, recording, and collecting the Joan are assumed by the lending bank. U S A F receives grants from foundations, industrial corporations, and other sources, which make it possible to match contributions by educational institutions in whole or in part. At the present time U S A F has several hundred thousand dollars which have been earmarked for this purpose. All contributions by educational institutions in excess of the basic $1,000 (which is matched dollar for dollar) will be matched to some degree if made prior to May 31, 1963. U S A F advises that the Illinois Bankers Association has indicated that it will recommend to its member banks that they participate in this program. It is proposed that on a trial basis an initial deposit of $2,000 be made, which, if matched dollar for dollar, would make possible the endorsement of loans totaling $50,000. The University of Illinois has no funds which it may use for this purpose. However, the Board of Directors of the University of Illinois Foundation has allocated $2,000 from uncommitted gifts for this purpose, and the allocation may be increased to $5,000 or more if the program works out satisfactorily. It will make available very substantial sums for student loans under conditions which can not be met by funds presently available to the University of Illinois or the University Foundation. The University must, however, be a party to setting up this program of student loans, and it is recommended that the Board of Trustees authorize execution of a contract with United Student Aid Funds, Incorporated, to deposit up to $5,000 of funds allocated by the University of Illinois Foundation for this purpose. O n m o t i o n of M r . S w a i n , t h i s 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 . APPROPRIATIONS FOR NONRECURRING EXPENDITURES (11) The Committee on Nonrecurring Appropriations recommends the following appropriations and assignments of funds from the University General Reserve: Urbana-Champaign 1. College of Engineering Department of Theoretical and Applied Mechanics, facilities and equipment $ 7 300 00 Department of Civil Engineering, equipment 5 100 00 2. College of Liberal Arts and Sciences Department of Zoology, teaching materials 6 000 00 3. Library, library additions 26 000 00