86 
A Study of Student Loans and 
The point which should be kept closely in mincl is the maintenance of 
a proper balance in all financial dealings with the Student. When no work 
can be obtained by the desirable Student, or when he must do outside work 
to the detriment of his full educational development, it is then that the 
institution itself or some outside Organization should Step in and give 
him legitimate assistance in the form of well administered loans. The 
loan should come in as the final weight to balance his budget provided 
always that his future possibilities warrant the investment. Loans, 
therefore, should act as a balance in Student finance and should not be 
made unless the loaning party is willing to “see the Student through.” 
When money has once been loaned to a Student, he should not be aban- 
doned unless he becomes financially hopeless. When a loan is made, it 
is not enough to consider whether the Student will be able to repay; 
it is also necessary to know how much money in addition he will 
need before he will be able to “cash in” on his investment and how 
much of this additional amount he will be compelled to borrow. If he 
is likely to be a bad business proposition, he should receive no loan; but 
if he is to get a loan, he should be carried through until he begins to “cash 
in.” If a man must borrow in his freshman or sophomore year, the chances 
are that he will have to borrow during the succeeding years of his College 
course, and unless the loaning party is ready to meet his reasonable 
demands during these succeeding years, no loan should be made during 
the earlier years. It is contrary to göod business policies. What reliable 
financier or bank will put money in an enterprise and then abandon it 
before the first turnover has taken place? Astonishing as it may seem, 
it remains true that this fundamental principle of good finance is rarely 
found in the administration of Student loans. Nothing could be more 
unbusiness-like. If money is once placed on a Student, he should be 
assisted to make good until he can be branded as an ultimate failure. 
The Postponement of Fees 
The postponement of fees is a form of loan and is here referred to 
for record only. Some institutions take a note in lieu of fees and tuition. 
Others extend a loan and then take the proceeds of the loan for fees and 
tuition. There is absolutely no difference. There may be a certain 
psychological effect, but in the last analysis, it is merely accounting tactics. 
The postponement of fees and tuition should be governed by the same 
principles as loans, for it is in fact a loan. 
Fellowships and Scholarships 
Fellowships and scholarships can hardly be said to have been admin 
istered more wisely than loans. This is unfortunate since so much money