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A Study of Student Loans and 
formulate definite policies of this sort and incorporate them with its 
general educational and administrative policies. President Venable of 
the University of North Carolina made the Statement in 1905 that “the 
proper handling of money and the responsibility for it is an important 
part of education”. This may be held by some to be too personal a matter, 
but since it is so vital it cannot be neglected. Almost every subject and 
many varied qualifications have been required at some time for College 
entrance. It has never been considered impertinent to inquire into a 
student’s academic record and to train him along definite academic lines 
to bring him up to a certain Standard; nor has it ever been considered 
unbecoming to inquire into his religious belief and at times to make cer 
tain requirements in this matter. His physical condition and social Stand 
ing are also frequently taken into consideration; management of his 
financial affairs has seldom been considered as a matter of concern to 
the institution. This is just as important to his weif are, to the institution, 
and to society as it is that instruction be given in religious, moral, or 
ethical principles. 
A course in personal economics could be made a part of College 
entrance requirements. This would force training along these lines into 
the high schools and the grades where the need for it is urgent. 39 The 
higher institutions must lead, however, by guiding and assisting their 
students in financial matters. There is no better place to do this 
than in the administration of Student loans. The fear that such a step 
would place undue emphasis upon the practical side of life is unfounded. 
It is a self-evident truth that students (and all persons for that matter) 
who are efficient in the handling of their financial affairs are the only well 
rounded individuals. Their minds are free from financial worries and 
instead of becoming more materialistic, they are free to grow intellectually 
and spiritually. This guidance in personal economics is not planned to 
teach the Student how to acquire large quantities of material goods, but 
is simply intended to see that he uses more efficiently the economic and 
financial resources which he has at his command. Teaching young people 
how to manage their incomes, directing them how to get ahead financially 
in life, and helping them to develop a practical economic sense is not 
necessarily materialism, as some would hold. Nor is it materialism to the 
detriment of other “isms”. The primary result is to lead the Student to 
see his responsibilities to himself, to the institution, and to the community 
in working out his own economic salvation and financial success. 40 It is 
30 The author is in part indebted to O. C. Lester, Vice-President of the Bowery Savings 
Bank, New York City, for this concept. 
40 O. C. Lester, “How to Make School Savings Banking Permanent”, News Bulletin of the 
Savings Bank Association, State of New York, September 18, 1925.