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

Collection:: Economics Books

Their Relation to Higher Educational Finance 113 previous year shows that there is no uniformity in the administration of Student loans in the various Colleges and universities. In working out a policy for the administration of Student loans, it is desirable to incorporate all that is best from the various methods in use. 12. Methods of Administration Loan funds are administered under two methods. The restricted method, which is loaning only the income from the fund, and the revolving method, which is loaning both income and principal. There are many more funds administered under the restricted method than there are under the revolving method, notwithstanding the fact that of the 93 institutions which answered an inquiry sent out by the Student Loan Information Bureau, 69 replied that they favored the revolving fund. The actual conditions reported show: CHARACTER AND AMOUNT OF FUNDS AVAILABLE 1924-1925 Revolving $187,253 10 funds Restricted 704,000 12 “ Emergency 5,000 2 “ Not specified 3,205,786 288 “ If a large part, the “not specified” funds ($3,205,786), is “restricted”, as it is safe to suppose, the proportion of available funds actually to be classified as “restricted” is overwhelming. Much of this money was left in the restricted form and must continue to be thus administered. How- ever, it is safe to assume that there are many of these funds that could be placed on a revolving basis. The revolving fund has the more weighty arguments in its favor besides having the favorable sentiment of a large majority of officials. The greater efficiency of the revolving fund is indisputable. For example, a fund of $100,000 at 5% yields $5,000 annually and would be sufficient to make a loan of $250 to 20 students. Over a period of fifteen years it would be able to make 300 such loans. On the other hand, $100,000 if turned into a revolving fund, allowing $20,000 of the principal to be loaned annually for the first five years, and revolved for an additional ten years, would be sufficient to make 1,475 such loans which means that it would serve practically five times as many students. Some officials and donors fear that if the principal as well as the income is loaned, the fund will eventually disappear. This fear is well founded only if it is admitted that funds cannot be efficiently administered. Those who administer student loans can well afford to borrow some of the principles from the business world that make loaning in small sums suc- cessful. Colleges and universities that have tried these principles of busi

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