may come from a home where there
can be but little financial aid given.

7. Should interest be charged? and,
.if so, what rate?

The experience of most clubs has
been that it is well to charge a nominal
interest rate from the time the loan is
made, as this impresses the student
with the business-like nature of the
transaction and brings in sufficient re-
turns to pay for the administration of
the fund and to offset losses. Most
successful funds charge 4%, 5% -or
6% interest, with the latter rate the

most popular. Many clubs make such
arrangements that the students’ notes
do not bear interest until after the date
of their graduation from college.

8. What method of repayment
should be employed?

Data received from clubs indicates
that the monthly installment repay-
ment method has succeeded best. It
possesses the advantage of definiteness,
parallels good business practice, and
provides for a systematic retirement of
the loan in amounts that are in propor-
tion to the person’s ability to pay.

 

be more liberal than usual.

 

STUDENT LOAN FUNDS AND THE WAR

Many schools are advancing their schedules, eliminating summer vacations,
etc., to help students graduate before being called for military service. This
will mean that some students, who have been more or less self-supporting
will find that they do not have the opportunity for summer employment,
and, therefore, may need outside assistance in order to meet the necessary
expenses. Many of these students will be worthy of special consideration
by the student loan fund committees of Rotary clubs. It should be recog-
nized, of course, that arrangements for repayment of the loan may have to

A similar problem will be presented to those Rotary clubs that have out-
standing loans. In many instances the loan cannot be repaid until the re-
cipient has completed his period of military service and has time to make
the necessary adjustments upon return to civilian life. This fact should be
taken into consideration in planning the loan budget for the year.

A new suggestion, born of wartime needs for skilled workers, has been
made that Rotary clubs might use their student loan funds to assist men
and women to prepare themselves as welders, machinists, air craft workers,
ship builders, and other trades vital to the war effort.