Their Relation to Higher Educational Finance 
129 
Form I.—Page Three 
H—Ins tallments 
1. Liquidation of the loan begins one year after graduation at the rate o£ Ten Dollars ($10) 
a. month irrespective of the size of the loan. Tfais payment shall apply toward the reduction of 
Principal, interest, and the payment of the required guarantee fund as set ferth in the section 
orr Group Guarantee. 
2. In no case.is the repayment of a loan to Start later ihan three years from date of loan. 
3. If a Student leaves school before graduation, monthly payments of Ten Dollars ($10) each shall 
begin three months after date of leaving school, and these installments shall apply. toward the 
reduction of interest, principal, and guarantee fund. 
4. In case of illness or loss of eir.ployment due to unavoidable causes, the time of payment of install 
ment may be extended by appücation made in writing to the Harmon Foundation at least ten 
days prior to the date upop which the installment becomes due, and provided that the written 
consent of the Harmon Foundation has been obtained. 
5. If the borrower has paid the first three installments promptly when due, he may thereafier at 
the discretion of the Harmon Foundation, make payments quarterly. 
COLLECTIONS AND DELINQUENCIES 
I—Student Representation 
When all borrowers of the fund bave been chosen in a College for a given year, they shall meet 
and elect from their number one representative for every five borrowers or part thereof. It 
shall be the duty of these representatives to act with the Student loan committee to assist the 
Harmon Foundation in following up delinquents among the borrowers of that year, and bring 
all influence to bear upon them so that the group will not suffer unnecessarily from the default 
of any of its members. 
IX—D elinquencies 
1. If a Student fails to make monthly or quarterly payments promptly when due, the Foundation 
will wait five (5) days before notification. The first delinquent notice will be a formal one, such 
as a bank would send out. 
2. If the borrower remains delinquent for a period of fifteen (15) days thereafter he will be 
reported to the chairman of the Student loan committee in his College who shall immediately send 
out the second notice. The form of this will be left to the discretion of the writer but should be 
personal in character. The Foundation expects to be notified of the date of this letter or have a 
copy of it. ... 
Simultaneously, one of the representatives of the group m which the dehnquency occurs will be 
notified by the Foundation with the request that he, or some one designated by him, who might 
have influence over the delinquent, write directly to the individual in arrears, calling attention to 
the latter's Obligation to his College as well as to his fellow borrowers, rather than to the Foundation. 
3. If the Student still is in arrears thirty-five (35) days after his installment is due, the Founda 
tion will send out a third notice. .Within a reasonable time this notice will be followed by such 
legal proceedings as a bank or business house would institute for the collection of a delinquent 
account. 
4. In the event that it becomes necessary to employ legal aid in order to collect an account, the 
charges for such service shall become and remain an Obligation against the borrower concemed 
until liquidated. 
5. While the foregoing will be the general practice the Foundation will be guided by the circum- 
stances in individual cases, especially where the borrower has failed to meet his first installment. 
III—Reports 
1. Borrowers shall respond within six days after the receipt of all Communications regarding their 
loans which call for a reply. 
2. The chairman of the Student loan committee and the group representatives shall reply promptly 
to the Foundation regarding all delinquencies of which they are notified. 
3. The Harmon Foundation will make annual reports to the chairman of the Student loan com 
mittee of all payments received. 
CERTIFICATE OF RECOMMENDATION 
All borrowers who discharge their obligations according to the terms of agreement, and whose 
character record has been satisfactory, become Honorary Members of the Harmon Foundation. 
This is evidenced by a certificate stating briefly the facts of the loan. On the reverse side the State 
ments of three New York bankers are printed giving their opinions as to the character evidenced 
or established by a record entitling one to such a certificate.