A study of student loans and their relation to higher educational finance

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Monograph

Identifikator:: 1028402236

URN:: urn:nbn:de:zbw-retromon-41825

Document type:: Monograph

Author:: Chassee, Leo Jeannot

Title:: A study of student loans and their relation to higher educational finance

Place of publication:: New York

Publisher:: Harmon Foundation, Inc.

Year of publication:: 1925

Scope:: 1 Online-Ressource (170 Seiten)

Digitisation:: 2018

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapther VI. The administration of student loans

Collection:: Economics Books

Tiieir Relation to Higher Educational Finance 99 reason can be found for making $100 the limit in 48 institutions, other than a lack of funds. In spite of the fact that only two institutions extend loans to the amount of $1,000 to one Student, this would seem a sound practice. A student who is worth helping at all should be “seen through” and it is not conceivable that anything below $500 would be of much assistance to him during his four years of College life unless it be for emergency purposes. To know how much money should be loaned a Student in accordance with the principles of commercial lending, it would be necessary to ascertain the cash value of his training and what Propor tion of such cash value would come to him during the immediate successive years after leaving College. The amount of the loan should also be adjusted to the cost of living and the cost of education in the community. For instance, it will be necessary for the loans to be larger at Columbia University in New York City than at Oberlin College in Ohio. No reliable figures on the cash value of an education are available, but it should be possible to compile them. Such figures, however, could serve as a guide only because they would be averages and the individual cases would still have to be estimated in the light of past experiences and costs in the individual communities. At any rate, it may be said with certainty that if a Student is loaned money at all, the amount should be sufficient to relieve him of his financial burdens to such an extent that he may do justice to his academic work without impairing his health. Two thousand dollars should not be too much of a loan to extend to a Student who has good health, is reliable and ambitious, and shows signs of a promising future. One institution now has plans under way to do this. Other institutions should be able gradually to raise the amount of money loaned to one Student as they become more skilled in the selection of the risk and as experience with their funds proves that additional money can be profitably used for this purpose. Funds will always be forthcoming when it can be demonstrated that a useful purpose is being served and that the money can be used over and over, thus perpetuating an enter- prise which is socially profitable. More funds have not been made avail able for student loans because funds in hand have not been administered so as to show that they served a useful and specific purpose. The only argument therefore which prevents the granting of larger loans to worthy students is the lack of funds and this argument has been met. As has been said, if loans are properly administered, sufficient funds can be obtained eventually and once a student has been granted a loan, he should be “seen through“ to the extent of $1,000 to $2,000 unless it is discovered in the meantime that the estimate made of him at the time of granting former loans is no longer justified.

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