A Study of Student Loans
91
As against these opinions there stand the actual conditions as follows:
AMOUNT OF FUNDS AVAILABLE 1924-1925
Revolving $187,253 10 funds
Restricted 704,754 12 “
Emergency 5,000 2 “
Not specified 3,205,786 288 “
$4,102,793
Revolving
$60,000
3,500
28,100
4,300
11,353
10,000
50,000
10.000
5,000
5,000
$187,253
Restricted
$1,000
25,000
10,000
25,000
32,000
1,000
2,754
50,000
27,000
25,000
500,000
6,000
$704,754
Ivmergency
$3,000
2,000
$5,000
The above data is most illuminating and shows that even though a
large number of university officers prefer the revolving loan fund to
the restricted, the amount of money administered under the latter method
far surpasses that administered under the formen There is only $187,253
in revolving funds as against $704,754 in restricted funds. If the “not
specified” funds ($3,205,786) are taken to be restricted, as it is safe to
suppose, the proportion becomes even more favorable to the restricted
fund. Much of this money was left in the restricted form and must
continue to be administered thus. However, it is safe to assume that
there are many of these funds that could be placed on a revolving basis.
An effort should be made to have future funds established in the same
way. Weightier arguments and the sentiment of a large majority of offi-
cials favor the revolving fund.
It is not well to be guided by unweighted statistics which would lead
us to advocate the restricted fund. The revolving fund has in its favor
the support of those who have given both Systems a trial. The greater
efficiency of the revolving fund is indisputable. If we should take, for
instance, a fund of $100,000 and see what can be done with it under the
restricted plan and on the other hand see what can be done with it under
the revolving plan, the results are most instructive and lead us to wonder
why this plan has been so long in coming into practice. One hundred
thousand dollars at 5% yields $5,000 annually and would be sufficient to
make a loan of $250 to 20 students for each of the first five years, 25