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

Bibliographic data

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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IV. The student as a financial risk

Collection:: Economics Books

66 A Study of Student Loans and The other factor in analyzing the Student as a credit risk is his ability to cash in later. In extending credit to an individual or Corporation the all important point is whether the borrower will be in a position to repay the loan when due or be at least as good a financial risk as when the loan was made. The first, character and definiteness of purpose, is but a basis upon which to estimate the second. The Student, for instance, who has no definite plan for financing himself and is doing nothing to help pay his expenses could hardly be considered as a good risk. Credit As Applied to Education There are only a few institutions which have taken over business credit principles in the administration of their loans. It has been their experience that even though they were eager to apply such principles to educational credit, it was not possible to do so directly. This is not surprising. Business credit methods can only be drawn upon in working out an educational credit System and not applied directly. They must be attuned to fit the purpose. It must be recognized that though education has a business side, it also has the academic side, which by its nature must conform to other Standards than those merely of business. Further, those seeking educational credit are young people, many of whom have had few responsibilities and are not in an advantageous position to judge the future. They have not yet learned to manage their personal affairs. The Student, therefore, must be treated differently from the business man when credit is being extended. But this treatment, for his own good, cannot be lax or indefinite. He must be made to feel the respon- sibility he is undertaking and assisted by proper administrative methods to carry out his contract. The commercial business methods must there fore be readjusted to the business of education; the analysis of the risk must be made differently; the credit term must be longer; the methods of payment and collections must be revamped. Training To The Student When credit is extended to a Student, the transaction, if properly administered, has three values; it gives him a valuable business training; it gives him a credit rating; and it assists him to make a good investment. The average Student when he enters College has had very little experience in dealing with others in a business capacity. The institution, therefore, has an opportunity to give him a training in practical business which may prove as valuable to him as his academic life. It follows that the placing of Student loans on a business basis will have a double benefit. It will give the Student a business training at the time he needs it most and it will

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