European Stars and Stripes (Newspaper) - March 4, 1992, Darmstadt, Hesse                                Page 16 the stars and stripes wednesday March 4,1992 Money matters Boeing group expects Boom Seattle a collapse of the soviet Union and greater stability in the Middle East will lift the worldwide airline Industry from bust to Boom the Boeing commercial air plane group predicted monday. Passenger air travel will nearly triple and $857 billion Worth of jetliners will be delivered by 2010, according to current Market Outlook an annual publication of Boeing a commercial Jet division. The main prediction in the forecast which extends five years longer than the Outlook of a year ago is for 5.5 percent annual growth in Revenue passenger Miles through 2000 and 5 percent from then to 2010. By contrast the Federal aviation administration reported Friday that air traffic declined in 1991 for the first time Ever and losses continue to mount As fuel prices remain High and passenger travel Low. Relaxation of world tension is the main Factor in Boeing commercials optimistic assessment said Richard l. James marketing vice president. A this will Lead to an improved travel environment and a brighter Outlook for air transportation a James said. . Bankruptcies set record of nearly 1 million last year Washington a bankruptcies nearly hit the 1 million Mark last year As huge increases in the recession racked new England and Middle Atlantic Region pushed filings to a new record. According to the american bankruptcy Institute 944,000 american individuals and businesses filed for bankruptcy a 21 percent increase from 1990. It was the highest number since the current . Bankruptcy code took effect in 1979 and the seventh consecutive increase nationally said the Institute whose members include lawyers accountants and others in the bankruptcy Industry. Ninety two percent of the filings were from individuals the rest from businesses the Institute said monday. A with . Bankruptcy courts dangerously overloaded. These bankruptcies result in additional burdens on already strained lenders and the tightening of credit for borrowers a said l. Edward Creel Iii a Dallas lawyer and vice chairman of the Institute. Many of the biggest increases came in economically Shell shocked new England. Filings Rose 51 percent in new Hampshire 47 percent in Rhode Island 45 percent in new Jersey 43 percent in Massachusetts 43 percent in Maryland 41 percent in Connecticut 37 percent in new York 36 percent in Vermont 35 percent in South Carolina and 34 percent in North Carolina and Florida. The greatest number of filings occurred in California 139,372, up 28 percent from 1990 the fewest in Vermont 955. Alaska was the Only state with a decline Down 8 percent to 1,064. The american bankruptcy Institute compiled the figures from information supplied by the administrative office of the . Courts. Analysts have said economic conditions clearly have contributed to the increase but they have noted other Factor such As the unprecedented buildup of debt by both Consumers and businesses. Also changes in the bankruptcy code in 1979 made it easier to declare bankruptcy filings in 1991 were 159 percent higher than in 1985, even though the Economy was growing through much of the period. Whatever the reason courts have become backlogged with Waits for final judgments increasing the Institute said. The Institute is backing legislation introduced in Congress that would add 32 increased bankruptcy rates figures in % new Hampshire. 51 Rhode Island 47 new Jersey 45 Massachusetts 43 Maryland 43 Connecticut 41 new York 37 Vermont 36 South Carolina 35 North Carolina 34 Florida 34 the greatest number of filings occurred in California 139,372, up 28 percent from 1990. Ass Peter Jaeger bankruptcy judges in districts with the heaviest caseloads. It also would establish a commission to recommend changes in the bankruptcy code. Loan plan for College students faces new snags by Tamara Henry a education writer Washington a what began in Congress As a grandiose plan to help millions of Middle income students get College Loans is being Cut drastically a victim of scepticism and heavy lobbying by Banks. The idea was simple colleges and universities would act As Lender bypassing Banks and other financial institutions. The students pay Back schedule would be based on income with the internal Revenue service collecting the payments. _ Banks and other players in the $4.8 billion student loan game stand to lose significantly despite the rising default rates on College Loans. Also some College administrators Are wary of excessive governmental intrusion even if irs involvement would be peripheral. And in this election year members of Congress Are showing Little patience for time consuming debate Over an unproven program a even if it is an alternative to a student loan system that has been described As bureaucratic and frustrating. The Senate refused to consider the idea during debate on reauthorization of the higher education act. Still the main proponents of the plan a Sens. Paul Simon d-lll., and Dave Durenberger a Minn. A remain optimistic that a something will get passed this year. The original plan has been scaled Down to a test by 300 colleges and universities. Proponents want to offer the new version to the Senate finance committee when it begins a review of a tax Bill. �?o1 want to make sure that this thing becomes a reality Quot Simon said. A the Basic idea is we should be giving people alternatives to what we have now and to help Middle income students and  Middle income americans complain that economic conditions threaten to Price them out of higher education As demands Are increasing for a better educated work Force. College tuition even when adjusted for inflation grew at five times the rate of the median family income from 1980 to 1987, a National Survey showed. By 1989, the average tuition or fee for a year in a Public College was $5,013 yearly tuition in a private institution was $16,356. Although inflation was 3 percent to 4 percent last year tuition and fees were up 12 percent at Public four year institutions and up 13 percent at two year Public universities the Survey showed. The Pilot program would operate parallel to the Pell Grants and guaranteed student Loans any students attending the selected 300 schools could borrow up to $5,000 a year with a total limit of $30,000. The interest rate would equal the 52-week Simon rate on Treasury Bills plus 2 percentage Points. The Loans would be repaid by increased irs withholding. The Pell Grant program created 20 years ago is the governments largest Aid program for higher education serving 3.8 million Low income students this year. About 4.7 million students received Low interest Bank Loans guaranteed by the government this year. Simon said direct student Loans will reduce defaults move to go Public costs equitable life millions Rel ii kit Ayse x of d Asle v id St i n is it a n which have Cost taxpayers $11.5 billion since 1987. The american Bankers association vehemently opposes the plan calling it a inefficient and  it contends that students and taxpayers would end up paying More interest because the repayment term would be 25 years rather than 10 years. The nearly 20-year-old student loan marketing association also is opposed. Sallie Mae is a federally chartered profit making stockholder owned company whose main business is buying student Loans from Banks thrifts schools and state agencies. The government guarantees the payment of principal and interest. But Durenberger insists that third party interests should not be the overriding consideration. A the purpose of the Federal student loan program is to help provide financial Access to higher education not to offer a guaranteed source of income for Banks a he said. Land Grant institutions were among the first to support direct student Loans said Peter Magrath president of the National association of state universities and land Grant colleges. Kennedy Pye president of Southern methodist University in Dallas said the National association of Independent colleges and universities supports the Pilot program but that members Are concerned about a government intrusion into the autonomy of colleges and  Phyllis k. Hooyman director of financial Aid at Hope College in Holland mich., said the concept is appealing even for a Small Liberal arts institution such As hers. Hope has processed Loans totalling $2.8 million for 1,100 students so far this academic year. New York a the equitable life Assurance society said monday that it lost $898 million last year under a new accounting system implemented to bring the insurer closer to becoming a Public company owned by stockholders. Equitable attributed the loss partly to a $562 million accounting charge against earnings associated with the discontinuation of its guaranteed investment contract business. The figures Are derived from generally accepted accounting principles the required method for publicly owned companies. The nations fourth largest insurer is in the process of converting from a Mutual concern owned by policyholders to a publicly traded company owned by shareholders. The switch will allow it to raise Money by Selling Stock. In 1991, equitable spent $75.6 million on fees to Bankers attorneys and actuaries who worked on the so called . Executives expect equitable the largest insurer to Demut Walize to incur similar costs this year As a result of the going pub Lic process. Equitable which has assets of $46 billion also reported a loss of $307.8 million from continuing operations based largely on write offs and allowances taken against real estate junk Bonds and commercial mortgages. Richard Jenrette equitable a chairman and chief executive said in an interview that results were adversely affected by aggressive write Downs taken to a get us ready for the Public environment and get the problems behind  in a letter to policyholders and employees Jenrette noted that without the a special one shot and non recurring charges for reserves and asset valuation equitable would have reported pretax earnings of $198  analysts applauded the moves. Rather than focus on the loss a you have to look at what a going to happen going Forward a said Kevin Ceurvorst an analyst with Duff amp Phelps inc. In Chicago. A they have a lot behind them and they be really toned up the company