[110] 
A STUDY OF STUDENT LOANS AND THEIR RELATION TO 
HIGHER EDUCATIONAL FINANCE 
DIGEST 
1. Changing Basis of Higher Education and its Financial Support 
Throughout the entire development of higher education we find that 
the purpose for which it existed and its sources of financial support were 
closely related. There are three reasons for the existence and liberal 
support of educational institutions: 
A. Cultural—which seeks the religious or spiritual welfare and also 
the advancement of knowledge in unremunerative fields. 
B. Political—which aims at training for citizenship. The cultural 
aims of education also bear directly on the training for citizenship. 
C. Economic—which seeks the increase of the physical wealth, com 
fort, and happiness of the individual and of humanity through the 
advancement and dissemination of knowledge. 
2. Three Sources of Higher Educational Income 
A. Endowments and gifts, or the philanthropic sources. 
B. Appropriations and gifts from city, state, and national govern- 
ments, including land grants. 
C. Fees and tuition paid by students, or income from students’ fees 
for tuition and other educational Services. 
3. Income According to its Source Compared with Benefits Derived 
from Higher Education 
A. Income from Student fees has not risen proportionately to that of 
income from other sources but has in reality decreased. 
B. Educational charges in the various schools or higher educational 
institutions, both public and private, have not been apportioned 
with due consideration of the differences in the economic value of 
the training the Student receives from the various schools or 
departments. 
C. The financial policies of institutions must be gradually remodeled 
in accordance with the changing economic conditions and the new 
purpose for which higher education exists which will necessitate a 
change of policy in regard to Student finance. 
D. The general claim that higher education justifies large state appro 
priations because of the subsequent value to society of the persons 
it trains, is equally applicable to any form of training, physical, 
cultural, or vocational.