Their Relation to Higher Educationae Finance
107
methods of approaching the subject because it is not who should
administer the funds that must be considered, but which organizations
can administer them in the most effective way. The organizations which
fall under consideration in regard to Student loans are: the educational
Institution itself, the philanthropic and semi-philanthropic foundations,
banks and trust Companies, and charitable, religious, and fraternal organizations.
Charitable, Religious, and Fraternal Organizations
The religious, charitable, and fraternal organizations which have
made provisions to grant scholarships, fellowships, and loans to students
in most cases administer the funds themselves. This is as it should be.
No funds should be accepted for administration by institutions unless
they are turned over unconditionally. If numerous restrictions and
qualifications are made by those making funds available, Provision should
be made for their administration. Where the College or university has
a well worked-out System of Student loans, funds turned over to it should
be received with the understanding that they will be administered as all
other funds in the institution. The numerous funds, with the various
provisions that now exist in institutions, are a drawback to an efficient
System of loans. They multiply the work and complicate the bookkeeping
connected with loans. It would seem a wise policy for institutions to
refuse to administer funds from such organizations unless given a free
hand in directing them. If organizations refuse to accept such conditions,
they should make provision to handle the funds themselves.
Banks and Trust Companies
Loans may also be administered by banks and trust Companies either
as a semi-philanthropic venture or as a purely business proposition. Some
banks and trust Companies have been loaning money to students on a
purely business basis and have been very successful. In some cases they
have required insurance or other collateral, in others organizations or
individuals stood ready to make good the losses, but up to date this has
not been necessary. The most notable examples of such ventures have
been in New York City, California, Texas, and in some European countries.
In all four localities it has proven an effective way of assisting
students. There is no question but that such a venture on the part of
financial institutions is sound. Trust Companies should be well adapted to
handle Student loans. Such funds would render valuable Service to
students and Supplement well the loan funds handled by other organizations.
