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A  STUDY  OF  STUDENT  LOANS  AND  THEIR  RELATION  TO
HIGHER  EDUCATIONAL  FINANCE

DIGEST
1.  Changing  Basis  of  Higher  Education  and  its  Financial  Support
Throughout  the  entire  development  of  higher  education  we  find  that
the  purpose  for  which  it  existed  and  its  sources  of  financial  support  were
closely  related.  There  are  three  reasons  for  the  existence  and  liberal
support  of  educational  institutions:
A.  Cultural—which  seeks  the  religious  or  spiritual  welfare  and  also
the  advancement  of  knowledge  in  unremunerative  fields.
B.  Political—which  aims  at  training  for  citizenship.  The  cultural
aims  of  education  also  bear  directly  on  the  training  for  citizenship.
C.  Economic—which  seeks  the  increase  of  the  physical  wealth,  comfort, ­
  and  happiness  of  the  individual  and  of  humanity  through  the
advancement  and  dissemination  of  knowledge.
2.  Three  Sources  of  Higher  Educational  Income
A.  Endowments  and  gifts,  or  the  philanthropic  sources.
B.  Appropriations  and  gifts  from  city,  state,  and  national  governments,
  including  land  grants.
C.  Fees  and  tuition  paid  by  students,  or  income  from  students’  fees
for  tuition  and  other  educational  Services.
3.  Income  According  to  its  Source  Compared  with  Benefits  Derived
from  Higher  Education
A.  Income  from  Student  fees  has  not  risen  proportionately  to  that  of
income  from  other  sources  but  has  in  reality  decreased.
B.  Educational  charges  in  the  various  schools  or  higher  educational
institutions,  both  public  and  private,  have  not  been  apportioned
with  due  consideration  of  the  differences  in  the  economic  value  of
the  training  the  Student  receives  from  the  various  schools  or
departments.
C.  The  financial  policies  of  institutions  must  be  gradually  remodeled
in  accordance  with  the  changing  economic  conditions  and  the  new
purpose  for  which  higher  education  exists  which  will  necessitate  a
change  of  policy  in  regard  to  Student  finance.
D.  The  general  claim  that  higher  education  justifies  large  state  appropriations ­
  because  of  the  subsequent  value  to  society  of  the  persons
it  trains,  is  equally  applicable  to  any  form  of  training,  physical,
cultural,  or  vocational.