Nation briefs 5/8/03

Florida to preserve 2000 election year ballots

TALLAHASSEE, Fla. -- Florida's chads are hanging around.

The ballots from Florida's disputed 2000 presidential election will be kept in the state archives for their historical value.

Secretary of State Glenda Hood sent a letter this week to election supervisors directing them not to destroy the ballots, which will be transferred to Tallahassee this summer.

Supervisors normally would have destroyed the ballots by now because they take up so much space. But Florida's Department of State, which oversees elections, extended the normal 22-month preservation deadline until July 1 to give lawmakers time to decide what to do about the famous ballots.

The legislature, however, never took up the issue.Hood said in the letter that she made the decision after consulting with archives staff and others.

The ballots were at the heart of the cliffhanger election and the ensuing five-week legal fight betweenGeorge W. Bush and Al Gore.Bush eventually won Florida, and thus the White House, by 537 votes, after a crucial decision by theU.S. Supreme Court.

Indictment charges agent in China spy case

WASHINGTON -- A federal grand jury indicted a retired FBI agent Wednesday on charges of gross negligence and wire fraud for allegedly allowing his longtime intelligence source and secret lover access to secrets she passed on to China.

The grand jury indictment returned in Los Angeles and released by theJustice Department in Washington charges James J. Smith, 59, for his role in the case of alleged Chinese double agent Katrina Leung.

Court documents say that Smith recruited Leung in 1982 to be an FBI"asset"providing intelligence on China and that the two began a long-lasting affair that year. Prosecutors say Leung pilfered classified material from Smith's briefcase when he visited her home and passed the information to Chinese intelligence agents.

Smith spent most of his 30 years in the FBI as a Chinese counterintelligence agent, retiring in 2000. He has been free on $250,000 bond since shortly after his April 9 arrest on a gross negligence charge.

Federal college loan rates to hit lowest level

WASHINGTON -- Some relief is on the way for families struggling to cover soaring college tuition: Lower interest rates are about to make federal loans cheaper than ever.

The changes, which could save borrowers hundreds to thousands of dollars over time, come as American families increasingly rely on debt to finance college education.

The interest rate on Stafford loans is expected to fall from 4.06 to 3.42 percent, the lowest since the program began in 1965. These loans are open to all students, and the government will pay the interest for financially needy students while they're in school.

The rate for another federal borrowing plan -- the Parent Loan for Undergraduate Students -- will likely fall from 4.86 percent to 4.22 percent.

And those who consolidate their loans can lock in a rate as low as 3.5 percent, down from 4.13 percent, according to Sallie Mae, the largest source of student loans.

Big lenders easing mortgage rules for military

WASHINGTON -- Lenders are making it easier for people in the military to handle their mortgages while on active duty, a group of mortgage finance companies said Wednesday.

Many military personnel can now temporarily halt or reduce mortgage payments by giving verbal notification of active duty. The simplified procedure relieves soldiers, sailors and airmen of the burden of proving financial hardship.

Large lenders, including Fannie Mae and Freddie Mac, said they would report temporary payment adjustments to credit agencies as "military indulgence." Fannie Mae, formally known as the Federal National Mortgage Association, said the credit-neutral term would protect military borrowers.

"Somehow, it's the idea of home that you really miss" in active duty, said Daniel Mudd, Fannie Mae vice chairman and chief operating officer.

-- From wire reports