Full text : A study of student loans and their relation to higher educational finance

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CHAPTER  III

ALLOCATION  OF  HIGHER  EDUCATIONAL  COSTS
Two  Phases
The  allocation  of  higher  educational  costs  ties  up  closely  with  the  purposes
  for  which  such  education  is  maintained.  The  three  purposes  which
have  been  found  to  be  cultural,  political,  and  economic,  bring  up  the  question
  as  to  what  the  sources  of  support  for  higher  education  are  and  how
these  sources  ally  themselves  with  the  purposes.  The  present  sources  of
support  together  with  the  proportion  that  each  bears  to  the  whole  and  to
each  other  have  just  been  examined.  The  question  now  arises  as  to
whether  they  and  their  present  interratios  are  satisfactory  in  view  of
the  purpose  for  which  higher  education  is  being  conducted,  and  if  not,
what  would  be  a  proper  ratio,  and  how  could  such  a  ratio  be  established  ?
In  the  allocations  of  higher  educational  costs  there  are  two  phases  to
be  dealt  with:
1.  The  allocation  to  society,  to  the  philanthropist,  and  to  the  individual
who  is  the  recipient  of  the  education.
2.  The  allocation  within  the  institution  among  the  various  schools,
faculties,  classes,  and  individuals  attending;  these  costs  to  be  allocated
  proportionately  to  the  purposes  which  such  education  serves.
Costs  and  Increased  Enrollments
The  number  who  have  availed  themselves  of  the  opportunity  for  a
College  or  university  education  has  been  steadily  growing  and  causing  our
educational  equipment  to  become  inadequate.  We  have  adhered  to  old
views  without  any  regard  for  the  changing  phases  of  our  social  and  economic ­
  organization.  The  increased  costs  due  to  greater  enrollment  and
more  expensive  educational  equipment  have  not  been  fully  taken  into
account  in  fixing  charges  for  educational  Services.  The  result  has  been  a
call  for  additional  endowments  and  larger  appropriations.  This  naturally
has  raised  questions  concerning  the  advisability  of  investing  more  money  in
higher  education.  It  has  resulted  in  developing  three  points  of  view  as  to
what  proportion  of  this  cost  society  and  philanthropy  should  bear  and  the
Charge  for  tuition  or  the  price  that  should  be  paid  by  the  individual  receiving
  the  university  or  College  education.  There  is  necessarily  a  ratio  here
between  the  benefits  received  by  the  different  parties  contributing  to  the
support  of  higher  education  and  the  proportion  of  the  cost  paid  by  each.
Whether  this  ratio  is  a  true  or  false  one  has  never  been  determined,  nor
has  the  problem  ever  been  scientifically  studied.
            
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