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:: Chapter IV. The student as a financial risk

Collection:: Economics Books

64 A Study of Student Loans and Taking into consideration that these studies were made ten years apart (1913 and 1924) and the rise in incomes since, the final estimates bear a close relationship. These two studies bear sufficient evidence that a College education has a cash value. This value is sufficiently important to be taken into consideration as one of the many reasons for helping the Student through College. However, the cash value as set forth by these two studies lacks certain adj ustments which should be taken into consideration: 1. The cost of a College education includes not only the positive expenditures, but what the Student would have been able to earn if he had been engaged in a remunerative activity. 2. There are not a few young men whose aims and ideals are so raised by a higher education that they themselves are rendered much less efficient as money rnaking machines. This is to be con- sidered only from the cash value standpoint of a higher education. 3. Those who complete a College or university education are in most cases the ones who, without such an education, would have earned an income above the average. The comparison of a selected group with the general average is not a reliable way to determine this cash value. It must be observed, then, that these estimates are not scientific and are not therefore sufficiently reliable to be used as a basis for credit extension. The problem of arriving at the cash value of an education is not so simple as the above studies would indicate. It should be determined for the purpose of loans in an entirely different manner. The earnings of graduates the first, second, third, and up to the tenth year after gradu- ation should be ascertained. This would be divided further into the earnings of graduates of the various schools of learning. A comparison would then be made, not with average incomes, but with the incomes of a group having the same ability as College people; the difference to be measured not being the ability, but the difference between the same ability when untrained and trained by a College education. A man’s College training cannot be considered as the all important element in his financial success. In Order to secure more accurate figures, it would be necessary to measure the amount of influence which a higher education has on the earning capacity of an individual. Education An Investment It is not possible to conclude what the exact cash value of an educa tion is, but it can be accepted with certainty that education has some cash value. This value warrants not only the loans now being made to students, but loans on a much larger scale. If acquiring a higher education is the securing of a product (training) which the Student will later be able to “cash in” on, then there is as justifiable reason to secure this training on credit as there is to buy land, Stocks, bonds, or any other form of invest

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