12
A Study of Student Loa ns and
advancement and dissemination of knowledge, it then falls upon the business
officers to provide for these physical and financial needs. The furnishing
and operating of the physical plant and the financing of the whole enterprise
of higher education may properly be termed “the business of higher
education” and should be under the guidance of business officers with
responsibility to the President only. This may be considered theoretical,
but it is theory that is being put into successful practiceby some institutions.
Student loans cannot be advantageously handled until some definite
policy such as the one discussed above is established with regard to the
scope of authority between the business officers and the academic officers
of the institution. The fundamental wrong with Student loans may be
traced to the Organization of the university itself and the consequent lack
of definiteness which the institution has in its business relations with the
Student. It is at this point that higher educational institutions have been
losing a great opportunity to train the Student in the practical affairs of life.
This training need not be confined to those who borrow, for all students
can be required to budget before entering College. Those who borrow
will simply receive additional training in the financing of themselves on
a credit basis. This can be done by making loans in monthly allowances
rather than in one large amount. Payments of the loan will be made in
the same way which means that the transaction will cover a period of eight
to ten years. Promptness and precision in dealing with the Student in this
matter cannot fail to be a valuable lesson to him in the fundamental principles
that make for success. A large proportion of the students borrow
and will therefore profit by such training. Similar training can be extended
to those who do not borrow. This group will also be required to budget
themselves before entering College. Some will have to budget to see what
loans they will require, others will have to budget so as not to be forced
to resort to loans, and the rest will have to budget so as to use most efficiently
the resources which they have at their command. Thus all students
will be receiving a training in proper personal business management. 2 To
accomplish this end, however, it is necessary that a definite line be established
between the business side of the institution and the academic side,
and the proper cooperation be brought about between these dual organizations.
Institutions will then become more efficient, and the Student
will come out of the institution a better product. 3 There is no reason to
suppose that his academic training would be inferior under such a System
and, on the other hand, he would receive a training in practical affairs that
would better fit him to deal with the business world. Every individual
must realize sooner or later in life that the world in which he lives demands
2 See Appendix A.
3 A more elaborate discussion of this will be found in the text, pp. 82-89.
