92 
A Study of Student Loans and 
students for each of the following five years, and 30 students for each of 
the next five years, and so on. Over a period of fifteen years, 375 such 
loans could be made. On the other hand, $100,000, turned into a revolv- 
ing fund, allowing $20,000 of the principal to be loaned annually for the 
first five years, would be sufficient to make 1,475 such loans, which means 
that it would serve 
practically five times 
as many 
students. 
It would 
operate as follows: 
Number of 
Number of 
Interest 
Students 
Principal and 
Students 
only 
Served 
Interest 
Served 
Ist year 
$5,000 
20 
$20,000 
80 
2nd “ 
“ 
<< 
24,000 
96 
3rd “ 
“ 
“ 
23,000 
92 
4th “ 
«( 
U 
22,000 
88 
Sth “ 
“ 
21,000 
84 
6th “ 
6,250 
25 
22,000 
88 
7th “ 
tl 
li 
25,200 
100 
8th “ 
u 
“ 
24,150 
97 
9th “ 
u 
“ 
23,100 
93 
lOth “ 
u 
“ 
22,050 
88 
1 Ith “ 
7,812 
30 
23,100 
93 
12th “ 
<< 
Ci 
26,460 
105 
13th “ 
“ 
25,357 
101 
14th “ 
<< 
it 
24,255 
97 
15th “ 
<< 
IC 
23,152 
93 
Totad 
$95,310 
375 
$348,824 
1,475 
The above figures should be convincing. One hundred thousand dol- 
lars administered as a revolving fund will help 1,475 students over a 
period of fifteen years, whereas it will help only 375 students during the 
satne period if administered as a restricted fund. Besides helping a greater 
number of students, it would attract, where well administered, more 
money to be handled in this manner, whereas the amount forthcoming 
when administered under the restricted plan is far from sufficient to 
meet the needs. If individuals who have money to give can be shown the 
good that can be derived by the establishment of revolving loan funds, they 
will be more willing to leave money for this purpose. Speaking of admin- 
istering money under the revolving method, Mr. G. C. Wintringer of 
Princeton University said: 
A fund of this kind makes a particular appeal to me personally and I 
have a feeling it should find favor with others. If an institution can demon- 
strate to a prospective donor that any money given for Student aid will be 
administered in a very business-like manner and can be used over and 
over - again, perhaps adding to the principal by the collection of interest, 
this should make a very strong appeal. It will likewise relieve the budget 
of the institution of the inclusion in it of a certain sum of money each year 
to be used for this purpose. 
Some officials and donors fear that if the principal as well as the 
inconie is loaned, the fund will eventually disappear. This fear is well 
founded only if we admit inefficiency in the administration of the funds.