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

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

70 A Study of Student Loans and The next most widely used guarantee is the personal note of the Student. This places him on his own honor. He accepts it as a moral Obligation to the institution and feels that he is dealing on a very high plane. The institution places confidence in him that spurs him on to do the right thing. If he fails to pay, he has broken a high trust. This is a more powerful and honorable weapon to hold before him than the threat (which he knows will not be carried out) of collecting from his endorser. The note of honor where properly used has been the most effective way of administering loans. The other forms of guarantee in the tabulation above are not in sufficiently wide use to be given much space in this discussion. The same objectiotis can be lodged against a band with signatures as against a bank able note. All such forms of guarantee are too burdensome and insincere to be used by institutions of a high type. Life insurance is too expensive and smacks of being out of place. It is good only in case of death. The death rate among students is very low and it is extremely questionable whether collections should be attempted under such circumstances. The Student who borrows to go through College has no assets and a loss due to death should be charged off. This does not mean that young people should not be encouraged to carry insurance when able to. To the con- trary, insurance is valuable, but it may be unwise for a young man to take on this additional bürden when he is already financially handicapped. This is not the place for insurance. It is not suited as collateral for a Student loan, because it is too expensive and because the same objections may be raised against this as against endorsements—it is required only as a pretense. Group Guarantee The group guarantee plan of lending money to students has not been extensively used nor has it been used for any length of time. It has been used outside the educational institution by organizations which affiliate with the universities and Colleges and do not lend directly to the students until they have been so affiliated. There are two organizations which have loaned successfully and extensively under this plan. 35 This System, as all Systems, obviously has advantages and disadvantages. It is perhaps best to see whether there is a purpose to be served by such a plan and then to see how near this plan comes to serving the purpose. Purpose To Be Served By Group Guarantee It would perhaps be possible to accept it as a foregone conclusion that there is a need for money loaned under the group guarantee plan. 85 The Harmon Foundation of New York City and Geschäftsbericht der Darlehnskasse der Deutschen Studentschaft in Germany. For description of these, see Appendices A and B of this publication.

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