loans would be a device for treating without discrimination those who saved and those who did not. Now the nonsavers get special treatment. Moon is also eloquent on the ingenious methods used to expand loan funds.10
Many of the leading college administrators also spoke out for greater use of loans as an effective means of facilitating the financing of students. President Charles Cole of Amherst, President A. Whitney Griswold of Yale, President Barnaby Keeney of Brown, President Grayson Kirk of Columbia, President Robert F. Goheen of Princeton--these and many others urged the greater use of loans. President Kirk wrote Senator Johnson that, whereas Columbia advanced $500,000 in loans in 1957, they would need $5 million by 1967.
Representatives of the land-grant colleges are, however, less enthusiastic. They want low tuition and help with facilities rather than large increases in scholarships and loans. Additional enrollment resulting from more aid means greater demands for funds, since tuition covers such a small part of costs.11
The College Life Insurance Company of America lists 88 loan funds, mostly by outside interests inclusive of a few state funds12 The maximum annual loan varies from $150 ( Thompson Fund for Girls) to $2,000 ( North Dakota Medical Center Loan Fund); maximum total loans from $300 ( Iowa Congress of Parents and Teachers) to $10,000 ( Bank of America); interest before graduation from 0 to 6 per cent; interest after graduation from 0 to 6 per cent. Generally repayments are required within a few years, though several allow a period of ten years. Many funds are of recent origin and hence could not report losses. But most reported no losses or losses of 1, 2, or 3 per cent, and a maximum of 5 per cent.
In November, 1960, the Prudential Life Insurance Company announced a plan for financing higher education over a period of eight to twelve years, with 45 major American banks cooperating and loans ranging from $2,000 to $12,000. Insurance would cover the father who takes out the policy. The Home Life Insurance Company enables a parent to finance the child's education over a period of twenty-five years--in part covered by insurance payments and in part by a loan.13
This chapter suggests that loans have not been a vital factor in the financing of students; but they are becoming a much more important force. The drive behind them stems from the limited funds available for scholarships, rising costs of higher education, and an increased awareness of the contribution of credit to the deployment of resources elsewhere and to the democratization of higher education. The NDEA has increased interest and