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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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapther VI. The administration of student loans

Collection:: Economics Books

Their Relation to Higher Educational Finance 105 tion during the summer months; second, the loan would be easier to administer in this manner since it could be extended in monthly allow- ances during the academic year and repaid on the corresponding dates five years later deferring a certain per Cent, of each monthly allowance to the corresponding dates of a later year, the amount deferred being in accord- ance with the amortized plan for repayment. It may seem involved to attempt such a method but, with the working out of suitable tables, it would become practically automatic and require very little bookkeeping. It would be highly commendable if the amounts loaned were made in multiples of $10 in all institutions. Ten dollars is sufficiently small to meet all requirements. If a Student wants $25 he can either get along on $20 or use $30 to advantage. The adoption of such a unit would simplify matters considerably and institutions could then cooperate in the printing of tables, record blanks, and necessary forms for the carry- ing out of such a System. Using $10 as the basic unit, ten months as the unit of time and five years as the period of the loan, an almost ideal System could be set up that would be much more practical than any now in use or as yet devised. With the necessary printed tables the System would be simple to operate. Collections It has been found that there exists no consistency of thought in regard to the selection of the risk, the size of the loans, interest rates, security, the term of the loans or methods of repayment. In so far as the Col lection of Student loans is concerned, a certainty of System is lacking. Very little attention has been given to this side of the question in most institutions. In general, they have had no collection Systems; those that have attempted to collect have done so only after loans were long overdue and the borrower had grown callous in his attitude toward his College loans. In many cases he has found it good business not to pay his College loan on which he paid little or no interest and instead to put his money into commercial and investment ventures which net him a good return. After the loans have been permitted to lapse for some time without reason, collection is all the more difficult. A sound System must aim not only at collecting loans overdue, but must take the matter in hand soon enough so that loans will be paid when due. This is another side of Student loans where business principles can be taken over bodily. The final stage in a loan transaction is to induce payment on time. Institutions, even where other- wise successful, have not properly analyzed this end of the loan contract and seldom have they undertaken to close the transaction in a business- like manner. Their appeals for the payment of loans overdue have not

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