That rings a bell. My first biannual after it was introduced here in the UK was also my first experience of the PA-38. At 3000 ft I was asked to demonstrate steep turns but they were steeper than the instructor was comfortable with and I was told never to do that again below 6000 ft in case it entered a spin for I'd need most of that to get it out again. Seemed to think it was irrecoverable in 3000ft. Dunno, but it didn't feel near the edge and it seemed to take the turns OK, though I never did think much of that 'T' tail.
One of then reasons I teach HASELL checks before steep turning exercises, its basic TEM