Their  Relation  to  Higher  Educationae  Finance

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This  borrower  had  not  even  asked  for  an  extension  of  time.  The  Foundation ­
  is  confident  that  fundamentally  this  man  is  all  right,  and  that  the  debt
will  be  paid.  This  letter  is  a  grave  reflection  on  some  one  or  some  institution,
  or  perhaps  the  social  System  under  which  the  young  man  grew  up.
In  Belgium,  Switzerland,  and  Holland,  and  other  European  countries,  it
is  often  the  practice  of  young  men  to  Start  in  business  on  borrowed  Capital ­
  raised  on  unendorsed  paper,  but  these  men  have  been  trained  in  business ­
  ethics  that  apparently  have  not  been  a  conscious  part  of  the  American
System  of  education.
In  looking  toward  the  future  development  of  its  loan  System,  the
Harmon  Foundation  extends  honorary  membership  to  all  its  borrowers
who  repay  their  loans  satisfactorily  according  to  agreements.  With  this
goes  a  character  certificate  on  the  reverse  side  of  which  is  set  forth  the
estimation  of  three  leading  New  York  bankers  of  its  value.  The  Division
of  Student  Loans  maintains  that  the  Student  who  through  his  own  initiative
borrows  to  obtain  an  education  and  then  repays,  has  established  a  credit
rating  that  should  be  of  immediate  and  continued  use  to  him  in  obtaining
banking  accommodations.  As  the  plan  becomes  better  known  and  its
Services  extended,  as  the  number  of  borrowers  grows  and  their  records
become  known,  this  should  have  an  increasing  value.  Ninety-eight  certificates
  have  thus  far  been  granted.
The  Honorary  Certificate  is  taking  on  a  surprising  significance—as
shown  by  letters  written  in  acknowledgment  and  appreciation  of  its  receipt.
The  primary  result  of  education  is  not  learning,  which  of  itself  is  a  lifeless
thing,  but  that  inspiration  which  vitalizes  the  forces  created  or  developed
through  study.  The  Foundation’s  Honorary  Members  have  caught  that
inspiration  and  are,  because  of  it,  approaching  life’s  problems  on  their
toes.  The  change  in  the  mental  attitude  of  the  graduate  who  has  not  yet
paid  his  Obligation  to  that  of  the  man  who  has  won  his  spurs,  from  the
point  of  view  of  the  Division  of  Student  Loans  and  his  own,  is  most
marked.  The  Foundation  is  beginning  to  harbor  the  hope  that  these  young
men  and  women  have  acquired  something  through  their  loan  experience
that  will  translate  itself  in  other  activities  throughout  their  lives.  Fach
of  us  can  probably  look  back  on  some  minor  experience  or  spontaneous  bit
of  advice  that  has  colored  our  whole  career.  The  Honor  Certificate  is
working  that  way  with  gratifying  uniformity.