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A  Study  of  Student  Loans

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E.  An  attempt  should  be  made  to  allocate  costs  of  higher  education
to  the  various  sources  of  revenue  in  proportion  to  the  benefits
which  institutions  of  higher  learning  have  to  offer  to  the  individuals,
  groups,  and  organizations  front  which  the  revenues  are
derived.

4.  The  Allocation  of  Costs
A.  The  allocation  to  society,  the  philanthropist,  and  the  individual  who
is  the  recipient  of  the  educational  benefits.
B.  The  allocation  within  the  Institution  among  the  various  schools,
faculties,  classes,  and  individuals  attending;  these  costs  to  be
allocated  proportionately  with  the  purposes  which  such  education
serves.

5.  Assumed  Results  Under  Cost  Allocation  As  Above
A.  It  would  place  higher  education  on  a  sounder  financial  basis  by
balancing  costs  of  certain  educational  efforts  against  specific
sources  of  income.  This  would  enable  those  seeking  funds  public
and  private,  to  give  specific  reasons  for  asking  for  financial  Support ­
  and  to  point  to  definite  benefits  which  such  a  support  would
produce.
B.  The  financial  program  of  higher  education  should  be  such  as  to
enable  it  to  receive  support  commensurate  with  its  importance.
C.  If  business  methods  were  used  in  the  handling  of  educational  funds
and  the  support  of  higher  education  were  sought  on  a  definite
basis  of  what  it  produces,  the  necessary  funds  would  be  obtainable.
D.  Proper  cost  allocation  would  advance  the  educational  aims  of  institutions ­
  by  making  larger  funds  available  for  the  carrying  on  of
educational  projects,  and  thereby  hasten  their  realization.
E.  Such  cost  allocation  would  mean  higher  tuition  fees,  which  present
a  perplexing  but  not  insurmountable  problem.  Well  administered
Student  finance  would  furnish  one  way  to  meet  these  new  demands.
6.  The  Amount  of  Money  Loaned  to  a  Student  Should  Depend  Upon:
A.  The  individual.
B.  The  type  of  education  desired.
C.  The  institution  and  its  reputation  for  turning  out  high  grade  men.
D.  The  known  opportunities  which  present  themselves  to  each  group
of  students  after  graduation  according  to  type  of  training.
E.  The  extent  to  which  the  training  will  increase  the  student’s  earning
  capacity.