A Study of Student Loans and 
4. No Student may become a borrower o£ the fund whose means of education are. not dependent 
either in part or whoily upon his own efforts. Preference will be given to the marginal Student: 
(a) The one whose course will be interrupted or terminated i£ he cannot obtain a. loan«. 
(b) The one'who will not make the loan a complete substitute for outside work. 
(c) The one whose health or College grades are likely to suffer if further assistance- is not 
obtained. Scholarship of the highestrank will not be a definite requirement for accept- 
ance. The Harmon Foundation does not wish to lend to inferior students but is not 
opposed to making loans to those whose grades are fair or low due to the heavy bürden 
of seif support. 
LOANS 
I— Agreement 
Each borrower is required to sign a contract in which is set forth the terms of his loan. 
II— Amount 
The maximum loan to any Student in a given school year is Two Hundred and Fifty Dollars 
($250). All loans granted to any borrower may not exceed a total of Five Hundred Dollars 
($500). The loan to a Student may be sent to him in one check, or, if he desires, in two install- 
ments. 
III— Interest 
Interest at the rate of six per cent. (6%) per annum is charged from the date the check is issued. 
IV— Group Guarantee 
1. Each agreement provides for the payment of a guarantee fund of ten per cent. (10%) of the 
amount of rncne}' borrowed. In no case shall any of this ten per cent. (10%) be used to aug- 
ment the funds of the Foundation, or to cover administrative expense. It may be used only to 
make up defaults in the repayment of loans within the group to which the borrower belongs. 
2. Four-fifths of the guarantee fund may be used to make up defaults in the borrower’s own 
College unit for the year in which he borrowed. The remaining one-fifth may be used to make 
up defaults which occur among the entire group of borrowers in a given year, in excess of the 
liability of the individual College unit. 
3. After the loans of any given College group have been repaid together with interest and 
guarantee fund, or charged off as defaulted, all of the four-fifths of the guarantee fund remain 
ing after deducting losses, will be retumed to the members of this group pro rata with interest 
at six per cent. (6%) for the time the guarantee fund has been held by the Foundation. 
4. After all loans made in any one year have been repaid together with interest and guarantee 
fund, or charged off as defaulted, any guarantee fund remaining will be distributed among the 
borrowers in that year pro rata with interest at six per cent. (6%) for the time it has been held 
by the Foundation. 
5. In order to provide for a better functioning of the group guarantee plan the Foundation 
requires that a school must have at least five eligible borrowers in order to be granted a loan 
fund. 
TERMS OF REPAYMENT 
-Accumulated Interest 
Borrowers are required to Start payment of accumulated interest at the rate of Five Dollars 
($5) a month beginning December first after graduation and continue until all interest which has 
accrued up to the following June first has been paid. If all of such interest is not paid by the 
Five Dollar ($5) monthly payments at the time the Ten Dollar ($10) installments as described 
below begin, then the Ten Dollar ($10) installments shall be applied against interest until all 
of the interest accrued to the above June first has been paid. 
Note: (<j) In the case of students graduating in February, payment of accumulated interest at the rate of 
Five Dollars ($5) a month shall begin June 1 following graduation and shall continue until all 
accumulated interest up to December 1 following graduation has been paid. Installments of 
Ten Dollars ($10) a month shall Start March 1, one year after graduation. If by this date all 
accumulated interest up to December 1 preceding has not been paid, such Ten Dollar ($10) 
installments will be applied against the above stated interest until it has been fully paid. 
(6) In the case of graduate students commencing repayment three years from date of loan at the 
rate of Ten Dollars ($10) a month, such payments will apply against accumulated interest 
until all such interest has been fully paid.