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A  Study  of  Student  Loans  and

been  sufficiently  exacting  and  have  often  taken  an  apologetic  form.  Some
institutions  have  looked  upon  a  rigid  System  of  collection  of  outstanding
funds  as  below  their  dignity  and  strangely  enough  have  seemed  to  prefer
seeking  funds  from  outside  sources  to  collecting  debts  that  are  rightfully
due  to  them.  So  lacking  in  sound  principles  is  this  that  under  our  present
economic  and  commercial  Organization  it  can  persist  only  to  the  detriment
of  higher  education.  It  is  mockery  for  an  institution  to  teach  principles
which  it  does  not  practice,  for  while  on  the  one  hand  it  attempts  to  instill
ideals  into  youths  at  the  same  time  it  undermines  these  teachings  by  its
business  dealings  with  the  Student  body.
An  effective  System  must  be  exacting,  precise,  and  prompt.  It  must
be  sympathetic  only  when  the  circumstances  warrant  sympathy.  The
borrower  must  be  approached  at  the  right  moment,  which  is  just  before
the  loan  falls  due.  The  longer  the  payment  lapses  the  more  hardened
he  becomes  to  his  obligations  and  the  more  difficult  it  is  to  collect.  The
borrower  should  be  sent  a  notice  that  his  payment  is  soon  to  fall  due.
This  notice  should  be  sent  sufficiently  in  advance  so  that  he  may  have  time
to  make  provision  to  pay  the  installment.  If  he  fails  to  pay  and  offers
no  explanation,  a  second  notice  should  be  sent  him.  Both  notices  can  be
printed  or  in  mimeographed  form.  If  these  two  reminders  fail  to  bring
in  a  payment  or  an  explanation,  he  can  be  notified  in  a  personal  way  which
will  be  suitecl  to  his  peculiar  case.  This  third  notice  would  cliffer  in  each
case,  depending  on  whether  delinquency  has  been  characteristic  of  all
previous  installments  or  whether  it  has  occurred  after  several  payments
have  been  promptly  made.  In  any  case,  the  delinquent  should  be  followed
up  closely  in  a  tactful  but  firm  manner.  If  the  borrower  is  made  to  meet
his  first  payments  on  time,  he  will  find  it  easier  to  meet  the  other  payments ­
  in  the  same  manner.

Organization  to  Administer  Loans
Having  discussed  the  administration  of  loans  and  the  principles
which  should  guide  such  administration,  it  is  important  that  something
be  said  as  to  what  Organization  can  best  undertake  it.  There  are  four
types  of  organizations  that  could  take  up  this  task  and  see  it  to  a
successful  end.  Higher  educational  officials  are  at  variance  as  to
what  Organization  can  best  administer  Student  loans.  Some  are  of  the
opinion  that  all  loans  can  and  should  be  administered  best  by  the  institution ­
  while  others  believe  that  an  outside  Organization  can  perform  the
task  more  effectively.  Still  others  believe  that  the  Organization  which
constitutes  the  source  of  the  funds  should  either  take  care  of  them
itself  or  make  provisions  for  their  administration.  These  are  poor