A  Study  of  Student  Loans

91

As  against  these  opinions  there  stand  the  actual  conditions  as  follows:
AMOUNT  OF  FUNDS  AVAILABLE  1924-1925

Revolving  $187,253  10  funds
Restricted  704,754  12  “
Emergency  5,000  2  “
Not  specified  3,205,786  288  “

$4,102,793

Revolving
$60,000
3,500
28,100
4,300
11,353
10,000
50,000
10.000
5,000
5,000

$187,253

Restricted
$1,000
25,000
10,000
25,000
32,000
1,000
2,754
50,000
27,000
25,000
500,000
6,000
$704,754

Ivmergency
$3,000
2,000

$5,000

The  above  data  is  most  illuminating  and  shows  that  even  though  a
large  number  of  university  officers  prefer  the  revolving  loan  fund  to
the  restricted,  the  amount  of  money  administered  under  the  latter  method
far  surpasses  that  administered  under  the  formen  There  is  only  $187,253
in  revolving  funds  as  against  $704,754  in  restricted  funds.  If  the  “not
specified”  funds  ($3,205,786)  are  taken  to  be  restricted,  as  it  is  safe  to
suppose,  the  proportion  becomes  even  more  favorable  to  the  restricted
fund.  Much  of  this  money  was  left  in  the  restricted  form  and  must
continue  to  be  administered  thus.  However,  it  is  safe  to  assume  that
there  are  many  of  these  funds  that  could  be  placed  on  a  revolving  basis.
An  effort  should  be  made  to  have  future  funds  established  in  the  same
way.  Weightier  arguments  and  the  sentiment  of  a  large  majority  of  officials
  favor  the  revolving  fund.
It  is  not  well  to  be  guided  by  unweighted  statistics  which  would  lead
us  to  advocate  the  restricted  fund.  The  revolving  fund  has  in  its  favor
the  support  of  those  who  have  given  both  Systems  a  trial.  The  greater
efficiency  of  the  revolving  fund  is  indisputable.  If  we  should  take,  for
instance,  a  fund  of  $100,000  and  see  what  can  be  done  with  it  under  the
restricted  plan  and  on  the  other  hand  see  what  can  be  done  with  it  under
the  revolving  plan,  the  results  are  most  instructive  and  lead  us  to  wonder
why  this  plan  has  been  so  long  in  coming  into  practice.  One  hundred
thousand  dollars  at  5%  yields  $5,000  annually  and  would  be  sufficient  to
make  a  loan  of  $250  to  20  students  for  each  of  the  first  five  years,  25