58 
A Study of Student Loans and 
stronger than the arguments for educational support in general, because 
it would show definitely what was to be accomplished, what interests were 
to be served, and who was to be benefited. A financial program of this 
kind might enable higher education to receive support commensurable 
with its importance. The importance of higher education must not be 
minimized, for the day is not far off when a nation’s greatness will be 
measured by the hundreds of millions it spends for education rather 
than by the millions spent for the maintenance of armies and 
navies. 29 If business methods were used in the handling of educational 
funds and if its support were sought on a definite basis of what it produces 
rather than the indefinite basis of “benefits to society” and the senti 
mental basis of “loyalty to one’s Alma Mater” the necessary funds would 
be obtainable. It would mean a more efficient way of administering funds 
and a more business-like way of securing the necessary financial support 
to carry out the various purposes and aims of higher education. 
An editorial in the Educational Review on “Costs of Higher Educa 
tion” referring to money spent for this purpose states : 30 
While the amounts of money appropriated or received from private 
sources for education, especially higher education, have increased, the needs 
have outrun them by leaps and bounds, and accomplishment seems to be 
lagging far behind opportunity. It is doubtful whether the Situation can 
be possibly met merely by increased endowments and appropriations. Es 
sential as these needs are, alone, and unaided by intelligent management, they 
will scarcely serve. The economy that is demanded of many citizens in 
business and in private matters is no less needed in public affairs and of all 
concerns of the public the need is probably the greatest in higher education. 
We cannot continue in the vicious circle of constantly striving to increase 
academic income to keep pace with the diminishing value of the dollar. The 
real remedv must be found in a wiser use of educational funds. Questions 
of wastefulness and duplication are not confined to any part of the country; 
the need of an economy in higher education is everywhere urgent. All in- 
stitutions seeking the support of public and private wealth, especially in this 
period of unprecedented expansion and high prices, should satisfy both 
themselves and others that their existing means are being used to the best 
advantage. Only thus can further stewardship be justified, when financial 
demands are everywhere so large and insistent. 
2. Proper cost allocation would advance the educational ends of institu- 
tions by making larger funds available for the carrying on of intellectual 
endeavors rather than having the intellectual accomplishments await the 
proper financial support. Intellectual activity and aims of institutions 
would be less dependent upon financial strategy. A reversal of present 
financial policies is needed in Order that we may realize from the untapped 
sources of support for higher education. 
3. Such cost allocations would mean higher tuition and fees, which 
present a perplexing but not insurmountable problem. Having decided 
29 Seligman, Op. Cit., p. 450. 
30 September, 1920, pp. 173-176.