Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-08-30

I
Last year $4,000 students al
500 colleges and secondary
schools utilized its services, IL
the tune Of $50 million. The
student borrows his full tuition
from the tuition plan. He then
pays 1t back in eight INSTALL
ments, at a charge Of 4 per cent
The University of Pennsyl-
vania has made special arrange
ments with the Girard Trust
Corn Exchange Bank Of Phila-
delphia for a monthly payment
plan. Under 1t. the student may
borrow tuition covering Up to
four years Of schooling in one
contract.
Columbia University has O
similar arrangement with the
Marine Midland Trust Co. Re-
payment is made in eight equal
installments during the aca-
demic year. The interest is 2A
per cent.
These are short-term loans
repayable while the student is
attending classes. Other col.
leges, taking a leaf from bic
business, have introduced long,
term deferment plans. The New
York Higher Education Assist
ance Corp, 70 rexample. helps
students secure loans from
banks, which are to be repaid
within q year after graduation
Probably the biggest banker
of them all is the Federal Gov
eminent. When colleges open II
September, 121 900 students arr
expected to receive loans undel
the National Defense Education
Act.
The Federal Government, a!
part of its program to en-
courage bright students to q
to college, is providing loar
funds to 1872 colleges and uni
versities. A total Of $50 million
has been allotted for studen
loans. The students start re-
paying their loans a year afte
they have completed full-tim'
study. The loan carries in
Iterest of 3 per cent on unpait
balances over a l0-year period
However, student borrower
who teach in public elementar.
and secondary schools will b
eligible for cancellation Of VI
4, to so per cent Of the loan i
they teach for five years o
more. The Government re-
Iquires that special considera
ton be given to students will
super n academic background
who in end to teach in elemen
tary or secondary schools. Stu
dents who are going to majol
lin science, math, engineering
or foreign languages also viii
get priority.
G0dsend for Parents
The installment plan of pay
ling for q college education viii
lprove a godsend to hundreds o.
thousands of parents, especially
since families are larger nov
than a few years ago.
Our case is not unusual
Next year our oldest daughter
Ellen will be a senior at Smith
The fees are $3.50 per semes.
ter. And the second oldest o.
our four daughters. Jill, viii
enter as q freshman at another
college. The tuition probabl,
will be the same as the Smith
fees. 1t won't be easy to dis
up $4,000 on September is anC
on January is to pay for tut.
ton. What about the othel
lcoSts?
Installment buying is an ole
American tradition. It will bur
you anything from a trip Il
Paris to a de luxe dinner Al
the Waldorf.
:. Principle Is New
But this principal is new il
American education. Many be.
lieve that it is a good policy
Certainly the values received
from a college education will
remain with you long after thu
last payment has been made
Colleges have found that tn
overwhelming majority Of stu
dents are honest. Few defaul
on their payments, whethel
spread over a year or five years
students and their parent'
; are basically honest" a uni
versity official in the Midwes
said. I'VE have lost only ,
! fraction of our loans. The rat,
of repayment is remarkabl!
high"
What happens If the stu
dents do not repay?
! I'VE can't reposses them
that's for sure" one collegl
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