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A  Study  of  Student  Loans

Under  the  plan  advanced  above,  there  are  two  alternatives  suggested  :
(1)  to  require  only  the  borrowers  to  contribute  to  the  guarantee  fund;
(2)  to  require  all  the  members  of  the  dass  to  contribute  to  it.  If  the
first  plan  is  followed,  then  the  money  should  be  refunded.  If  the  second
plan  is  followed,  then  the  sum  left  over  after  losses  are  paid  could  be
turned  over  to  the  alumni  fund  to  be  disposed  of  by  an  alumni  committee
composed  of  members  who  have  borrowed  in  the  past.  Or  it  could  be
left  as  a  surplus  guarantee  fund.  In  any  case,  after  experience  in
administering  funds  in  this  manner,  the  surcharge  for  this  purpose  should
be  such  that  few  refunds  would  have  to  be  made.