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."•-W

V%S*

44  A  Study  of  Student  Loa  ns
Cost  of  Building
Comparing  the  same  curves  as  in  Chart  3A  with  the  cost  of  building,
Chart  3B,  we  observe  practically  the  same  relationship.  The  only
difference  is  that  the  cost  of  building  reaches  a  higher  peak,  has  a  gradual
rise  after  1921,  and  keeps  above  all  the  tuition  lines,  except  from  1921
to  1923,  whereas  the  cost  of  living  line  falls  below  one  cf  the  tuition  lines
in  1921  and  remains  in  that  position  up  to  the  present.

Sources  of  Income  versus  Benefits
Keeping  in  mind  that  Statistical  information  is  very  inadequate  and
unreliable,  we  may  nevertheless  formulate  certain  postulates.  First,  that
the  income  from  the  Student  body  has  not  risen  proportionately  to  that
of  the  income  from  other  sources.  This  is  a  matter  which  needs  serious
consideration.  Second,  that  the  educational  charges  in  the  various  schools
within  the  institutions,  both  public  and  private,  have  not  been  apportioned
with  due  consideration  given  to  the  differences  in  the  economic  value  of
the  training  to  the  Student  as  among  the  various  branches  of  leärning.  A
few  institutions  have  approached  such  an  arrangement,  but  there  is  no
reason  to  believe  that  this  has  been  done  in  a  calculated  way.  Third,  that
the  financial  policies  of  institutions  have  not  been  remodeled  in  accordance
with  the  changing  economic  conditions  and  the  new  purposes  for  which
higher  education  exists.  Fourth,  that  the  general  argument  or  contention
  that  higher  education  justifies  large  state  appropriations  from  the
subsequent  value  it  renders  to  society,  is  equally  applicable  to  any
form  of  training,  physical,  moral,  or  for  the  trades.  The  bricklayer  (on
the  average)  is  potentially  as  useful  to  society  as  the  average  writer,  poet,
artist,  musician,  or  even  lawyer  or  business  man,  as  well  as  a  large  Proportion ­
  of  those  engaged  in  the  many  forms  of  so-called  scientific  work.
Not  all  College  graduates  contribute  more  to  society  than  the  average  individual. ­
  It  is  only  the  exceptional  man  in  the  exceptional  position  who
contributes  more  to  society.  Fifth,  that  an  attempt  should  be  made  to
allocate  costs  of  higher  education  among  the  various  sources  of  revenue
in  proportion  to  the  benefits  which  institutions  of  higher  leärning  have
to  offer  to  these  different  individuals,  groups,  and  organizations  which
constitute  the  sources  of  income.  In  order  to  do  this,  it  would  be  necessary
to  measure  both  the  benefits  of  higher  education  which  the  different
parties  receive  and  also  the  cost  to  the  Institution  to  make  these  benefits
available.