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  sentimental ­
  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  Education” ­
  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.  Essential ­
  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  institutions
  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  institutions
  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.