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A Study of Student Loans and 
been sufficiently exacting and have often taken an apologetic form. Some 
institutions have looked upon a rigid System of collection of outstanding 
funds as below their dignity and strangely enough have seemed to prefer 
seeking funds from outside sources to collecting debts that are rightfully 
due to them. So lacking in sound principles is this that under our present 
economic and commercial Organization it can persist only to the detriment 
of higher education. It is mockery for an institution to teach principles 
which it does not practice, for while on the one hand it attempts to instill 
ideals into youths at the same time it undermines these teachings by its 
business dealings with the Student body. 
An effective System must be exacting, precise, and prompt. It must 
be sympathetic only when the circumstances warrant sympathy. The 
borrower must be approached at the right moment, which is just before 
the loan falls due. The longer the payment lapses the more hardened 
he becomes to his obligations and the more difficult it is to collect. The 
borrower should be sent a notice that his payment is soon to fall due. 
This notice should be sent sufficiently in advance so that he may have time 
to make provision to pay the installment. If he fails to pay and offers 
no explanation, a second notice should be sent him. Both notices can be 
printed or in mimeographed form. If these two reminders fail to bring 
in a payment or an explanation, he can be notified in a personal way which 
will be suitecl to his peculiar case. This third notice would cliffer in each 
case, depending on whether delinquency has been characteristic of all 
previous installments or whether it has occurred after several payments 
have been promptly made. In any case, the delinquent should be followed 
up closely in a tactful but firm manner. If the borrower is made to meet 
his first payments on time, he will find it easier to meet the other pay 
ments in the same manner. 
Organization to Administer Loans 
Having discussed the administration of loans and the principles 
which should guide such administration, it is important that something 
be said as to what Organization can best undertake it. There are four 
types of organizations that could take up this task and see it to a 
successful end. Higher educational officials are at variance as to 
what Organization can best administer Student loans. Some are of the 
opinion that all loans can and should be administered best by the institu 
tion while others believe that an outside Organization can perform the 
task more effectively. Still others believe that the Organization which 
constitutes the source of the funds should either take care of them 
itself or make provisions for their administration. These are poor