112 
A Study of Student Loans and 
7. Reasons for Lösses in the Past 
A. Loan Funds have not been properly administered. 
(1) Lack of definite agreements with borrowers. 
(2) Student was not made to realize the Obligation he was under- 
taking—the institution failed to develop a clear-cut sense of 
responsibility. 
(3) The risk was not properly selected. 
(4) There were no systematic collections. 
(5) The charging of no interest or too low interest. 
B. The institution failed to “see the Student through”. Loans were 
made in the early part of the College career and additional loans 
were refused, which kept the Student from finishing his education. 
C. The institution failed to realize how a right kind of loan policy can 
be made a means of character building. 
8. Expenses Listed in Announcements 
There should be a more accurate estimate of what students need to 
spend so as to relieve the loan office of unexpected demands for loans. 
9. Students Should be Helped to Budget More Accurately in Order 
that necessary provision may be made for loan demands. 
10. Fellowships and Scholarships would be Administered 
most advantageously if the following guiding principles were adhered 
to: 
A. A Fellowship should be an honor awarded for proved scholastic 
ability with a promise of greater development of that ability. 
B. A Scholarship should be an honor awarded to those who give 
promise of scholastic ability. 
C. The financial consideration should be of secondary importance. 
It should be given only to those fellows and scholars who need it 
in order to do their best work. 
D. If the training received and the work done has an economic value, 
the financial assistance should be in the form of a loan; if not, it 
should be in the form of a periodical allowance. 
E. The Fellowship and Scholarship should be held only as long as 
the holder produces something specific in the way of advancing 
or of organizing knowledge.