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 organi 
zations. 
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 coun 
tries. 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 organi 
zations.