12 
A Study of Student Loa ns and 
advancement and dissemination of knowledge, it then falls upon the busi- 
ness officers to provide for these physical and financial needs. The furnish- 
ing and operating of the physical plant and the financing of the whole enter- 
prise of higher education may properly be termed “the business of higher 
education” and should be under the guidance of business officers with 
responsibility to the President only. This may be considered theoretical, 
but it is theory that is being put into successful practiceby some institutions. 
Student loans cannot be advantageously handled until some definite 
policy such as the one discussed above is established with regard to the 
scope of authority between the business officers and the academic officers 
of the institution. The fundamental wrong with Student loans may be 
traced to the Organization of the university itself and the consequent lack 
of definiteness which the institution has in its business relations with the 
Student. It is at this point that higher educational institutions have been 
losing a great opportunity to train the Student in the practical affairs of life. 
This training need not be confined to those who borrow, for all students 
can be required to budget before entering College. Those who borrow 
will simply receive additional training in the financing of themselves on 
a credit basis. This can be done by making loans in monthly allowances 
rather than in one large amount. Payments of the loan will be made in 
the same way which means that the transaction will cover a period of eight 
to ten years. Promptness and precision in dealing with the Student in this 
matter cannot fail to be a valuable lesson to him in the fundamental prin- 
ciples that make for success. A large proportion of the students borrow 
and will therefore profit by such training. Similar training can be extended 
to those who do not borrow. This group will also be required to budget 
themselves before entering College. Some will have to budget to see what 
loans they will require, others will have to budget so as not to be forced 
to resort to loans, and the rest will have to budget so as to use most effi- 
ciently the resources which they have at their command. Thus all students 
will be receiving a training in proper personal business management. 2 To 
accomplish this end, however, it is necessary that a definite line be estab 
lished between the business side of the institution and the academic side, 
and the proper cooperation be brought about between these dual organiza- 
tions. Institutions will then become more efficient, and the Student 
will come out of the institution a better product. 3 There is no reason to 
suppose that his academic training would be inferior under such a System 
and, on the other hand, he would receive a training in practical affairs that 
would better fit him to deal with the business world. Every individual 
must realize sooner or later in life that the world in which he lives demands 
2 See Appendix A. 
3 A more elaborate discussion of this will be found in the text, pp. 82-89.