A study of student loans and their relation to higher educational finance

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Monograph

Identifikator:: 1028402236

URN:: urn:nbn:de:zbw-retromon-41825

Document type:: Monograph

Author:: Chassee, Leo Jeannot

Title:: A study of student loans and their relation to higher educational finance

Place of publication:: New York

Publisher:: Harmon Foundation, Inc.

Year of publication:: 1925

Scope:: 1 Online-Ressource (170 Seiten)

Digitisation:: 2018

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IV. The student as a financial risk

Collection:: Economics Books

72 A Study of Student Loans and members. Many students when introduced to this scheme are more in favor of it than the charitable plans. They experience a feeling of inde- pendence for their group. They like to know that they are not dependent upon their elders, but can battle their own way. It comes to them at a time when the desire for independence is greatest and such a System of loans is a source of real pleasure to desirable students. Those who have borrowed under a plan of this kind have expressed themselves in such a manner. The following quotation is worth-while evidence as to how some students view this form of security: Each borrower feels that he is in a measure responsible for the ongoing of the plan as a whole and thus holds himself accountable not only to the members of his group, but to students who will in the future need help such as he himself has received. He is no longer an individual borrower accountable chiefly to himself, but is rather a link in an endless chain, the continuity of which depends upon his own integrity. Thus the sense of responsibility at first centering about himself has through his participation in a common enterprise passed its narrow bounds until it is now a feeling of Obligation to countless people, most of whom he will never see. The Student loan is therefore a powerful instrument in devel- oping character because it operates indirectly, for it is a truism that when character is made the object of conscious, labored effort, the purpose is defeated by the selfish nature of the process employed. Character is truly the by-product of fine living and can best be developed by strengthening per sonal integrity and quickening that sense of social responsibility which trans- cends private interest. 37 The group guarantee plan makes use of the only asset which the Student has—present and future character. A loan made on this basis is a Service to the individual and the Community, since it moulds and strengthens the element which is the best kind of collateral and is the essence of credit—the element of character. The group guarantee further develops a spirit of group responsibility which is fundamental in our present institutional society. This form of borrowing helps the Student to acquire financial independence because it takes him directly into the field of finance, making him realize the serious and definite nature of his contract which he frequently did not feel when borrowing under the old regime. On the other hand, group guarantee releases for loans the principal of funds rather than confining loans to the income of funds only. Needless to say this makes it possible to serve a much larger num- ber of students. At the same time the funds are just as safe as when invested in gilt-edged securities. The group guarantee plan therefore serves a purpose and fills a need. The funds now available for loans to students are inadequate and this plan should attract more money into a field which will enable students to borrow more and in a manner in which many prefer. An estimate made on the basis of figures jointly compiled by the Harmon Foundation and 37 Taken from an essay on the group guarantee plan for Student loans written by Martin C. E/ntorfF, and quoted in Harmon Foundation Bulletin, June, 1925.

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