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:: Chapther VI. The administration of student loans

Collection:: Economics Books

Their Relation to Higher Educational Finance 97 are overdue will eventually be paid in large measure. Sotne institutions have been successful in collecting money after it has been out for as long a period as twenty years. The relative proportions between the columns tabulated above are interesting. The total amount of money overdue in 135 institutions in 1923 was $386,816, which is approximately one-fourth of $1,634,795, the total amount outstanding. To be exact, 23 per cent. of the total amount of funds was overdue. This is not surprising when we consider that most institutions have no systematic method of collect ing due and overdue accounts. The total amount outstanding ($1,634,795) is almost double the amount available in one year (1923). In other words, a sum equal to 57 per cent. of the total amount of funds out standing was available for the purpose of loans in 1923, which is an exceedingly high proportion. It means a very favorable turnover in loans. One-fifth ($944,905) or 20 per cent. of the total amount of funds originally established ($4,609,088) for the purpose of making loans to students was available in 1923, which would indicate a turnover approxi mately every five years. Taking into consideration that some institutions have been administering their loans very poorly, it means that other institutions must have been most efficient in order to bring the average up to this favorable level. Selecting The Risk Since the selection of the risk is important in the successful admin- istration of loans, it is well that this element of Student loans be fully elaborated here even at the risk of repetition. The supposition is that Student loans will be administered under the same principles as commer- cial loans with but a slight change in these principles in order that they may be applied to the student’s peculiar problem. No mechanical device can be put forward and no set of rules can be established to guide those who are to decide which students are to be granted loans. The proper selection of the risk is something that can come only as the result of experience in dealing with students. The student’s present needs, future ability, and willingness to pay are the deciding factors. His present needs can be determined by the analysis of his Statement as to his present financial circumstances. His present income consists of what he is able to receive from home without depriving other members of his family of a just share of the family income. If his family is in comfortable circumstances, there is no reason why the Institution should help him financially. If his family is not able or is unwilling to assist him, he is then eligible for a loan, provided that his probable future financial success warrants it. Here lies the difficulty. His future financial success is hard to estimate, but if a Student has a

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