Students May Be Forced to Quit Jobs

Hundreds of University-employed students receiving National Direct Student Loans (NDSL) may be forced to quit their jobs within a few weeks, financial aid officials said yesterday.

The students are working through Harvard's "self-help" plan-a combined loan-job financial aid package which may not exceed $2600 a year for freshmen, or $3200 a year for upperclassmen. If the students work into the second semester they will exceed this limit, Martha Homer, director of the student employment office, said yesterday.

The students using the NDSL-500 of 1600 in the self-help program--may contine to work only if they use their in-come to repay their loan. But because most students prefer to pay back their loans after graduation, they will leave their jobs instead, Elizabeth Hicks, director of financial aid for freshmen, said yesterday.

"The federal government prohibits students who are receiving the National Direct Student Loan from exceeding a strict limit of financial aid, because the government is cutting back on it," Hicks said. "Students can pay back their loans with the earnings from their jobs, but they can't pay tuition," she added.

"These requirements don't really hurt National Direct Student Loan recipients," Hicks continued, adding, "Since they are usually the most needy. their tuition is fully paid for already with Harvard aid."

The earning ceiling does not apply to jobs with Harvard Student Agencies, or jobs outside the University.

Recipients of another loan program, the Guaranteed Student Loan (GSL) may use extra earnings to pay tuition as well. Harvard and private banks provide the GSL's, while the federal government issues the NDSL, which focuses more on need.

Most students using either the NDSL or the GSL will be required to meet with financial aid officers soon to negotiate alterations in their packages. Notices will be sent out to remind those who have reached their earning ceilings.