16 
A Study of Student Loans 
other than commercial usefulness. The outworn appeals of “loyalty to 
one’s Alma Mater,” “for the good of society,” and “the uplift of man- 
kind” are empty phrases which are out of harmony with modern changes in 
human Organization. Our education must be put on a more individualistic 
basis and the individual must pay a larger share of the cost, depending 
upon the kind of value which can be assigned to the training he receives. 
If the individual is to pay for a larger proportion of his education, 
he will have to be guided how to meet these new demands both through a 
wiser use of the resources at his command and through making available 
to him additional resources in the form of loans. In Order to secure funds 
so to assist him, it will be necessary that they be administered under busi- 
ness principles. 
If a higher price is to be placed upon higher education, it will be 
necessary to study higher educational finance not only as it has been 
studied from the standpoint of costs, but from the standpoint of benefits 
derived by those who come in contact with it and the benefits given to 
society as a whole. Thousands of dollars have been spent to study the 
cost of higher education, but there has been great reluctance and no attempt 
to estimate the values which higher education produces and what price 
should be placed on such values. Perhaps higher education has no value 
to either the individual or society; its efforts may be producing negative 
results for all we know. It is necessary that we show what results higher 
education is producing over a long period of time, that we assign values 
to these, and that we Charge proportionately. If this is not possible, we 
must declare higher education bankrupt. To say that it is not bankrupt, the 
results which higher education brings about must be shown to possess values 
sufficiently above cost to make it worthwhile for universities and Colleges to 
continue and it must be shown also that it is a paying proposition for cer- 
tain individuals to purchase the Services of these institutions on credit. 
A higher price for higher education may be justified by the fact that 
in so far as it is deemed theoretically right for “the consumer to pay the 
freight”, it is right for the educated to pay for his education. The 
adoption of a sound Student loan plan would permit Colleges to increase 
fees to meet costs, except where state institutions are strongly competitive, 
and in time they will have to follow the trend in fairness to their tax paying 
constituency. When the consumer is not able to “pay the freight” in cash, 
the costs are not written off against him, but an agreement is entered into 
for payment when the goods have enabled him to secure the necessary 
funds. So too, in education the Services should not be given away simply 
because the consumer is unable to pay at the time, but they should be 
extended to him on a definite credit basis which should consist of well 
administered Student loans.