148 
A Study of Student Loans and 
The general economic importance of the association is due to the fact 
that it enables the students to finish their studies without being troubled 
by money cares. 
The money is at his disposal on favorable terms and thus the Student 
is prevented from falling into the hands of usurers as was the case pre- 
viously. 3 
The work of the association is built mainly on the thought 
that the Student is able to get means enough for his first Semester, but to 
the end of his university work he is not able to do so and must be accorded 
help which enables him to use the future returns of his Professional work 
of the next decade in the finishing up of studies.* 
This idea of self-help and especially of the Student as a worker was 
the basic one in the establishment of the association and in all its measures. 
The way proposed by the Loan Association was the only way which would 
enable every upright man to work up with the help of his own forces and 
with the complete security of his inner freedom and independence. 
Organization and Administration 
The association is managed by the Executive Committee which con- 
sists of the President, two vice-presidents, and a treasurer; the Managing 
Board which is made up of representatives of the governments of the 
German Empire; representatives of the Association of German Uni- 
versities, representatives of the German students, and representatives from 
the business world; and the General Assembly. At the outset it was 
decided that the regulations concerning the management of the branches 
were not final, but that changes ccruld be made later on the basis of future 
experience. Although the control of the funds was to be centralized, 
the granting and payment of loans was to be local, handled by the branches. 
The management of each branch is taken care of by representatives 
of the faculty of the university where the branch is located, representatives 
of the Student body of the university, and a practical business man (pref- 
erably a banking specialist). 
The purpose of the branch is the carrying on of local activities: 
1. The distribution of means received from the central office among 
students chosen after careful and impartial investigation of the incoming 
applications. 
2. The continuance of connection with the borrowers until repayments 
have been completed. 
3. The receiving of repayments on loans as well as interest. 
4. The transfer of these payments to the central office. * 1 
8 Und. 
1 Ibid.