108 
A Study of Student Loans and 
There is a question, however, as to whether it would be wise for 
educational institutions to turn over loan funds to financial organizations 
for administration. Those who are in doubt as to the wisdom of such 
a Step believe: first, that the educational institution can handle the matter 
as well as the financial institution; second, that if the students do not 
repay, it will reflect on the university and the university will have to make 
good the defaults; third, since the university would have to make good 
these defaults the bank or trust Company might not use its utmost efforts 
to press collection; fourth, that it is questionable whether some financial 
institutions could administer such funds more efficiently than educa 
tional institutions; fifth, that some officials are reluctant to relinquish their 
power over the administration of Student loans; sixth, that many of the 
funds are so tied up that provisions must be made to administer them at 
the institution and since this must be done machinery may as well be 
developed to administer all of the Student loans. 
We conclude that: 
1. Institutions must make provisions to administer the funds 
intrusted to them for Student loans. 
2. Banks and Trust Companies are well adapted to lending money 
to students and due to the legal restrictions placed upon them, 
there is little danger that they will go to extremes in this matter. 
Their efforts should be a valuable Supplement to those made by 
the educational institutions. 
3. Universities and Colleges must develop higher Standards and 
more efficiency in the administration of Student loans. 
Philanthropie and Semi-Philanthropic Organizations 
The administration of Student loans by those organizations which fall 
under this dass is much to be desired. Organizations such as the Harmon 
Foundation, can well administer funds to students and in that way be 
of great Service to higher education. The Service is of two kinds: first, 
that actually rendered in the making of loans, which enable young people 
to finance themselves through College in an independent and business-like 
way; and second, that of raising the Standards in loan administration 
since organizations of this type are not hampered by institutional views 
as are Colleges and universities. The first is a direct benefit, the second 
is a benefit derived through wholesome influence. Such foundations are 
therefore of Service in their influence and work and their loans form a 
valuable Supplement to loans made by educational institutions and other 
organizations.