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A Study of Student Loans and
The general economic importance of the association is due to the fact
that it enables the students to finish their studies without being troubled
by money cares.
The money is at his disposal on favorable terms and thus the Student
is prevented from falling into the hands of usurers as was the case previously.
3
The work of the association is built mainly on the thought
that the Student is able to get means enough for his first Semester, but to
the end of his university work he is not able to do so and must be accorded
help which enables him to use the future returns of his Professional work
of the next decade in the finishing up of studies.*
This idea of self-help and especially of the Student as a worker was
the basic one in the establishment of the association and in all its measures.
The way proposed by the Loan Association was the only way which would
enable every upright man to work up with the help of his own forces and
with the complete security of his inner freedom and independence.
Organization and Administration
The association is managed by the Executive Committee which consists
of the President, two vice-presidents, and a treasurer; the Managing
Board which is made up of representatives of the governments of the
German Empire; representatives of the Association of German Universities,
representatives of the German students, and representatives from
the business world; and the General Assembly. At the outset it was
decided that the regulations concerning the management of the branches
were not final, but that changes ccruld be made later on the basis of future
experience. Although the control of the funds was to be centralized,
the granting and payment of loans was to be local, handled by the branches.
The management of each branch is taken care of by representatives
of the faculty of the university where the branch is located, representatives
of the Student body of the university, and a practical business man (preferably
a banking specialist).
The purpose of the branch is the carrying on of local activities:
1. The distribution of means received from the central office among
students chosen after careful and impartial investigation of the incoming
applications.
2. The continuance of connection with the borrowers until repayments
have been completed.
3. The receiving of repayments on loans as well as interest.
4. The transfer of these payments to the central office. * 1
8 Und.
1 Ibid.
