Their  Relation  to  Higher  Educational  Finance

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Form  I.—Page  Three

H—Ins  tallments
1.  Liquidation  of  the  loan  begins  one  year  after  graduation  at  the  rate  o£  Ten  Dollars  ($10)
a.  month  irrespective  of  the  size  of  the  loan.  Tfais  payment  shall  apply  toward  the  reduction  of
Principal,  interest,  and  the  payment  of  the  required  guarantee  fund  as  set  ferth  in  the  section
orr  Group  Guarantee.
2.  In  no  case.is  the  repayment  of  a  loan  to  Start  later  ihan  three  years  from  date  of  loan.
3.  If  a  Student  leaves  school  before  graduation,  monthly  payments  of  Ten  Dollars  ($10)  each  shall
begin  three  months  after  date  of  leaving  school,  and  these  installments  shall  apply.  toward  the
reduction  of  interest,  principal,  and  guarantee  fund.
4.  In  case  of  illness  or  loss  of  eir.ployment  due  to  unavoidable  causes,  the  time  of  payment  of  installment ­
  may  be  extended  by  appücation  made  in  writing  to  the  Harmon  Foundation  at  least  ten
days  prior  to  the  date  upop  which  the  installment  becomes  due,  and  provided  that  the  written
consent  of  the  Harmon  Foundation  has  been  obtained.
5.  If  the  borrower  has  paid  the  first  three  installments  promptly  when  due,  he  may  thereafier  at
the  discretion  of  the  Harmon  Foundation,  make  payments  quarterly.
COLLECTIONS  AND  DELINQUENCIES
I—Student  Representation
When  all  borrowers  of  the  fund  bave  been  chosen  in  a  College  for  a  given  year,  they  shall  meet
and  elect  from  their  number  one  representative  for  every  five  borrowers  or  part  thereof.  It
shall  be  the  duty  of  these  representatives  to  act  with  the  Student  loan  committee  to  assist  the
Harmon  Foundation  in  following  up  delinquents  among  the  borrowers  of  that  year,  and  bring
all  influence  to  bear  upon  them  so  that  the  group  will  not  suffer  unnecessarily  from  the  default
of  any  of  its  members.
IX—D  elinquencies
1.  If  a  Student  fails  to  make  monthly  or  quarterly  payments  promptly  when  due,  the  Foundation
will  wait  five  (5)  days  before  notification.  The  first  delinquent  notice  will  be  a  formal  one,  such
as  a  bank  would  send  out.
2.  If  the  borrower  remains  delinquent  for  a  period  of  fifteen  (15)  days  thereafter  he  will  be
reported  to  the  chairman  of  the  Student  loan  committee  in  his  College  who  shall  immediately  send
out  the  second  notice.  The  form  of  this  will  be  left  to  the  discretion  of  the  writer  but  should  be
personal  in  character.  The  Foundation  expects  to  be  notified  of  the  date  of  this  letter  or  have  a
copy  of  it.  ...
Simultaneously,  one  of  the  representatives  of  the  group  m  which  the  dehnquency  occurs  will  be
notified  by  the  Foundation  with  the  request  that  he,  or  some  one  designated  by  him,  who  might
have  influence  over  the  delinquent,  write  directly  to  the  individual  in  arrears,  calling  attention  to
the  latter's  Obligation  to  his  College  as  well  as  to  his  fellow  borrowers,  rather  than  to  the  Foundation.
3.  If  the  Student  still  is  in  arrears  thirty-five  (35)  days  after  his  installment  is  due,  the  Foundation ­
  will  send  out  a  third  notice.  .Within  a  reasonable  time  this  notice  will  be  followed  by  such
legal  proceedings  as  a  bank  or  business  house  would  institute  for  the  collection  of  a  delinquent
account.
4.  In  the  event  that  it  becomes  necessary  to  employ  legal  aid  in  order  to  collect  an  account,  the
charges  for  such  service  shall  become  and  remain  an  Obligation  against  the  borrower  concemed
until  liquidated.
5.  While  the  foregoing  will  be  the  general  practice  the  Foundation  will  be  guided  by  the  circumstances
  in  individual  cases,  especially  where  the  borrower  has  failed  to  meet  his  first  installment.
III—Reports
1.  Borrowers  shall  respond  within  six  days  after  the  receipt  of  all  Communications  regarding  their
loans  which  call  for  a  reply.
2.  The  chairman  of  the  Student  loan  committee  and  the  group  representatives  shall  reply  promptly
to  the  Foundation  regarding  all  delinquencies  of  which  they  are  notified.
3.  The  Harmon  Foundation  will  make  annual  reports  to  the  chairman  of  the  Student  loan  committee ­
  of  all  payments  received.
CERTIFICATE  OF  RECOMMENDATION
All  borrowers  who  discharge  their  obligations  according  to  the  terms  of  agreement,  and  whose
character  record  has  been  satisfactory,  become  Honorary  Members  of  the  Harmon  Foundation.
This  is  evidenced  by  a  certificate  stating  briefly  the  facts  of  the  loan.  On  the  reverse  side  the  Statements ­
  of  three  New  York  bankers  are  printed  giving  their  opinions  as  to  the  character  evidenced
or  established  by  a  record  entitling  one  to  such  a  certificate.