82 
A Study of Student Loans and 
These figures are the highest estimates made in the announcements. 
If a canvass were made of former students’ actual expenditures, it is 
safe to assume that the above estimates, even the highest, would prove 
insufficient. However, the prospective Student does not understand the 
true Situation and as a result overlooks many expenditures which he will 
necessarily make. 
The above is introduced because it is believed that student loans do 
not stand alone in the field of student help. Very often loan funds are 
resorted to because of two reasons; first, because the student is really in 
financial straits, and second, because he makes unnecessary expenditures. 
If, in order to avoid this Situation, precautions were taken in the way of 
guidance in personal financial, self-help, rearranged programs, and so on, 
the loan phase of student aid could then be adjusted accordingly. 
Making the Budget 
It would be a good plan to require each student to accompany his 
application for admission with his plans for a budget. 43 The budget should 
be complete, including the expected expenditures and the sources of income 
to cover such expenditures and should show in the case of inadequate 
budgets just how much the Student lacked and how he expected to cover 
this shortage. This, of course, could be done in two ways only: by borrow- 
ing and by earning. The institution should know approximately how 
much a Student will be able to earn in the community and thus be able 
to see to what extent it will be called upon for loans. If it is not prepared 
to grant these loans, the student could be discouraged from registering 
or advised to do part time academic work only. Such a procedure would 
also throw light on the fact that many students who borrow need not do 
so. They borrow in order to be able to spend more, thus draining the loan 
funds and leaving an inadequate supply for the more needy students. 
Many must then work hard just to keep going. A vicious circle is started 
which becomes cumulatively worse. 
Kinds of Student Aid 
The student has two sources from which to draw in order to bring 
his budget into balance when it is not balanced at home. He may work. 
This is commonly called self-help; he may borrow from friends, relatives, 
organizations, or the institution. He may secure various other forms of 
help under the label of scholarships and fellowships. All these sources 
are of concern to the institution and an effort made to bring about a proper 
43 The “Institution of Honour Loans” in France requires a tpc certificate from the Maire of 
the student’s home town in order to ascertain the financial position of his family and thus see 
whether it is necessary for the student to receive a loan.