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:: Chapter IV. The student as a financial risk

Collection:: Economics Books

Their Relation to Higher Educational Finance 71 In reality, money loaned by the university or College on a note af honor is under a group guarantee. The Student who borrows thus feels that he owes it to the Institution and to those who are to come after him, to pay the money back. That which he fails to repay, other students must pay for him in the way of decreased equipment or less money to be loaned to future students. It is the “next batch” of students who pay for the defaults of the “present batch.” Under the group guarantee it is the “present batch” that pays for the defaulting member of its own group. The question, therefore, must not be whether the group guarantee is sound, but rather which form of grouping is the most sound. It is all group guarantee. One is positive, the other negative. The positive is to be preferred. Shall the next generation pay for the defaults of the present generation or shall the present generation pay for its own defaults? There should be no need for argument to convince the thoughtful individual which is the better plan. It is easier for a group to use pressure upon its own members than it is for the members of the following group (in point of time) to exert pressure upon their predecessors. A terse way of dis- posing of the question is to ask: Shall generations pay as they go or con- sume what rightfully belongs to posterity? This question may be thrown out as a challenge to the leaders of higher education. If they are to be worthy of their trust as leaders, they must Start from the roots of the evil. They must conserve and use more skillfully the instruments of higher education. 36 The first step towards such Conservation is to encourage the present generation to pay full price for what it consumes. The influence of such a program practiced by higher education would go far beyond the walls of the institution. It would ingrain in the College Student a quality which is now lacking, namely, the sense of placing a higher price on the training which he receives and the willingness to pay that price. The influence would then project itself into future time so that when the Student thus trained becomes a leader in the community, he will exert an influence towards the ideal which is fundamental to civilization—- that the generation of present time must leave more to posterity than it has received from ancestry. Service of the Group Guarantee The group guarantee therefore serves as an instrument to teach the “pay as you go” doctrine—speaking in terms of generations. It is an instrument to make the present “batch of students” look after their own 30 This Statement is based on the thought that higher education is produced by the use of seven instruments or what may be called the seven elements of higher education. Without regard to their order of importance they may be stated as: (1) Buildings and grounds, (2) Physical equipment, (3) Available funds, (4) The Student body, (5) The faculty, (6) The Academic Administrative Staff, (7) The Business Administration Staff. The efficiency of higher education depends upon the proper combination or proportioning of these elements.

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