APPENDIX C Characteristics of college student borrowers under National Defense Education Act and United Student Aid Funds, Inc., programs 1 Loans will be made to freshmen in the school year beginning September 1963. LEXINGTON HERALD-LEADER CO., Hon. WAYNE MORSE, U.S. Senator, Senate Office Building, Washington, D.C. DEAR WAYNE: Knowing your interest in Federal aid to education, I have an idea that we believe will be helpful. (1) Set up an agency similar to the now FHA, which guarantees payments on houses and buildings for one-half of 1 percent. Use this same formula so that any boy or girl, black or white, man or woman, that wants to continue their higher education (that is to go to college, Master's degree, Ph. D. degree, medical school, law school, etc. (2) This money would be loaned to the prospective students at the rate of 3 percent interest, and to be paid back in full within the period of 11 years after he or she has finished their degree from college. (3) This 22 percent interest that the bank would receive would be treated the same for tax purposes as municipal bonds; approximately 21⁄2 percent would be tax free as far as the income tax is concerned to the bank. As most banks are in the 52-percent tax bracket, this would net them equal to a 5-percent loan. These loans would be made to college students whether they are going to private or public schools, or to trade schools. (4) Regardless of the financial status of the parents; this would make no difference on whether this loan would be made. (5) The only prerequisite for a loan would be a letter of recommendation from the high school principal, and two character witnesses. There are a lot of boys and girls now who do not go to college, because of financial conditions. (a) A lot of boys and girls do not want to work this hardship on their (b) If this plan were to be put in operation, there would be no need for a Peace Corps in the United States, and the dropouts would be cut to a minimum. (c) There are a lot of people in the United States now who would give their "eyeteeth" if they could change their profession, and go back to school, and become a doctor, lawyer, or an accountant, and this plan would enable them to do so. This would be one of the greatest booms to education this country has ever known, and the unemployment in this country would be cut to a minimum. In fact, I believe there would be a shortage of labor. I might add that I have talked this over with the candidate for Governor on the Republican ticket in Kentucky, and he intends to make this a plank in his platform. I would like to see you get behind this on the national level, and when you have time, let me have your thoughts on this. Your friend, THOMAS L. ADAMS, P.S.-This money would include books, clothes, meals, etc. Like the FHA, this program would make money for the Government and would not cost the taxpayers a cent. A law would have to be passed that a minor would be liable for debts contracted for educational purposes. Hon. WAYNE L. MORSE, OREGON STATE UNIVERSITY, STUDENT LOAN FUND, INC.. Washington, D.C. SENATOR MORSE: The student loan committee has reviewed those portions of S. 580 pertaining to financial assistance to students in higher education. Fellowship programs are administered by the graduate school, so part D was not reviewed by us. For the sake of clarity, the student loan committee is a faculty committee, not a part of the student government. The removal of the $250,000 institutional maximum and increasing the ap propriation ceiling from $90 million are both greatly needed changes. We also believe the inclusion of teachers in higher education for special consideration and partical cancellation is desirable. We assume the 25-percent rate for graduate work is for professional advancement for which a degree or certificate would be earned. We believe the provision for full-time studies at an institution outside the States should be restricted to the graduate level in that an undergraduate program too often involves more pleasure than business. The insured loans program is currently being operated by private organizations which provides 100-percent protection to the lender. The costs of this program are borne by private foundations and corporations and by participating insti tutions. It is estimated that this program will be expanded as need grows. We, therefore, question the advisability of the Federal Government entering this field. I requested two bankers, who deal with the United Student Aid Funds program, to review this part of title I. It was the opinion of both that such a program is not needed. It was a matter of concern to them how this program could be administered with the institution being an integral participant when no institutional funds were involved. It is the opinion of these bankers that the United Student Aid Funds program will be expanded to provide adequate aid. The borrowing limit to the student of $10,000 also appears unrealistically high. If this program is adopted, a maximum interest rate should be clearly stated in the law. The work assistance program would be a worthwhile addition to our financial aid program. As introduced, the program appears satisfactory to Oregon State The interest of the Congress in financial aid to students in higher education 8 appreciated. We shall look forward to your keeping us advised of matters ending concerning this topic. Sincerely, FRANK JONASSON, Part C: Student Work Study Programs Senator WAYNE MORSE, THE OHIO STATE UNIVERSITY, Senate Office Building Washington, D.C. DEAR SENATOR MORSE: Fifteen of the larger institutions of higher learning in the Midwestern States are represented in the Midwest Association of University Student Employment Directors. This association at its recent annual meeting studied and discussed H.R. 3000, title I, part C, and unanimously voted their support. As indicated by the enclosed resolution of 1962, we feel that there has, in recent years, been an overemphasis on grants and loans to the general disregard of student earning opportunities. With rising costs and academic standards it is no longer practical for a student to fully meet educational expenses from current earnings. However the time-honored idea of students working to make a significant contribution to the financial support of their college education is still practical. Those students who do accept additional responsibility in variably take greater pride in their work and attach greater value to their opportunities. Further, those of college caliber show greater achievement on campus by reason of this increased responsibility. The general employment situation of the past 3 years has resulted in a gradual but constant decline in off-campus opportunities available to students. However, there is much that they can do to assist the college faculty and administration while at the same time gaining a valuable insight into the complexities of the educational system. Further, the student needs employment where the time and cost of transportation is minimal. If matching funds were made available we are confident that more than twice as many students would be conscientiously employed on most college campuses in a valuable learning situation. The program proposed in this legislation has already been proven in the "Faculty aid" program at Harvard and other institutions. Additional institutions have been seriously considering similar programs but funds would, in most cases, have to come from other programs such as loans and scholarships which are already inadequate. The Midwest Association of University Student Employment Directors strongly recommends to you and your colleagues favorable consideration of this legislative proposal to help ambitious and deserving college and university students to help themselves. Sincerely yours, CHAS. E. MCCOMBS, Chairman, Midwest Association of University Student Employment Directors. RESOLUTION OF THE MIDWEST ASSOCIATION OF UNIVERSITY STUDENT EMPLOYMENT DIRECTORS Whereas great publicity is being given to the fact that a significant percentage of the upper 25 percent of high school graduates are not going on with college work, and further that the reason given for not continuing their education is financial limitation; and Whereas considerable emphasis is being placed upon scholarship and loan programs to entice talented young people to enter college; and Whereas comparatively little publicity is being given to the significant virtues of financing a college education at least partially on a "do-it-yourself" basis of summer and/or part-time employment: Therefore be it Resolved, That the Midwest Association of University Student Employment working students, go on record by attesting to the fact that many students today, through a combination of savings, summer employment, and part-time employ ment while attending school, are paying a major portion of their college expenses. Some earn all of their expenses. The association also testifies to the fact that although the academic records of working students vary as much as do those of nonworking students, studies indicate the academic standing of working students surpasses that of nonworking students; and that some of the superior records are made by students who are employed between 20 and even more hours per week during the academic year. The working student finds it necessary to organize his time and to develop effective study habits, and he is encouraged to accept greater responsibility. It is the conviction of the membership of the association that during the education period there are definite and important values in work and practical experience. It grants that there are likewise values in certain extracurricular and social activities. Even so, there are times when it is highly desirable for stu dents to limit their involvement in the social activities in order to facilitate the achievement of important educational goals. Too frequent and too diversified by source to be discredited are statements that many of the current generation of college age youth are soft and lacking in self-dependence, motivation, determination, ingenuity, and application-qualities which have contributed so much to the greatness of our Nation. Counselors of young people find every day evidence to substantiate these claims. It cannot be expected that ingenuity will be developed if there is not the need or the oppor tunity to use it; that maturity will be achieved without experience in facing and solving day-to-day problems, as well as the long-range problems such as the setting up, planning, and realization of career objectives. The association urges, in the interest of our society, that more attention be given to the guidance of young people in such a way that they will be sufficiently motivated toward an education to be willing to labor to attain desirable educational goals, and that talented students who do not enter college because of financial reasons be made fully aware of the opportunities of achieving the educational opportunity through one's own efforts and earnings. Educational institutions and governmental agencies are urged to direct their efforts toward assurance of adequate opportunities for part-time employment of the increasing numbers of college students. SOUTHERN ILLINOIS UNIVERSITY, Hon. WAYNE MORSE, Washington, D.C. DEAR SENATOR MORSE: I want you to know how much I enjoyed appearing before your Senate Subcommittee on Education on May 14. It was most heartening to find a man of your stature so interested in the college student and the importance of personnel and guidance activities in helping the student make a satisfactory adjustment to college. Particularly was I interested in your concern with the C student. As one who has always maintained that a democracy is just as effective as its citizens are literate, I have been increasingly disturbed that strong forces in our society, for whatever reason, seem to want to relegate a large portion of our citizens to a "limited literate" status. Southern Illinois University, as one of the rapidly developing universities of the past decade, has staunchly defended a policy that all young men and women of college age should have an opportunity to attend college. The position is still being held, but with increasing difficulty, as forces in the general educational community continue to equate educational quality with high admissions standards. We have engaged in a curriculum experiment during the past year which may be of value to you and your staff on your attempt to document the impor tance of the C student having an opportunity for higher education in the decades ahead. I am enclosing a copy of a description of our "Experimental freshman year” project for your information and possible use. Also enclosed cational opportunity beyond high school for a maximum number of citizens in the area which we serve. Best wishes in your effort to pass Senate bill 580. President, American College Personnel Association and DENNIS L. TRUEBLOOD, Professor of Higher Education. EXHIBIT VII [Excerpt from "This Is Southern" by Southern Illinois University] STUDENT WORK PROGRAM The student work program, operating on the Carbondale and Edwardsville campuses, offers a wide variety of job opportunities. Students are referred to job openings by the student work office on the basis of the students' aptitudeand proficiency-test scores, qualifications, work experiences, or academic interests. The student work office does not place students in jobs, but selects them for referral to faculty who decide on hiring students after personal interviews. It is advisable to take tests and make application for work early in the spring. Since jobs are limited, it is also advisable to have adequate financial resources to meet expenses the first quarter. Freshmen should not expect to carry a full academic load, if it is necessary to earn a large part of their expenses at the university. The rate of pay varies from $0.80 to $1.25 per hour depending on the job, the skills, qualifications, and work experience of the student employee. The hours may vary according to the student's financial needs and needs of the employer. The student work office also assists students in securing off-campus jobs and full-time summer employment. An application for student employment, or information about work possibilities, may be obtained by writing to the student work office on the campus where work is desired. SOUTHERN ILLINOIS UNIVERSITY EXPERIMENTAL FRESHMAN YEAR Progress Report No. 1, November 5, 1962 In the interest of keeping the faculty and staff informed concerning educational research activity at Southern Illinois University, progress reports on the experimental freshman year program will be distributed. The first progress report will review the nature of the program, summarize recent activity on the project, and announce future plans of interest to the faculty. The nature of the program The experimental freshman year program was developed to learn more about students entering college who had been poor achievers in high school. Southern Illinois University, as well as most other State colleges and universities, must admit students who have graduated from an accredited high school in the State, even if their academic records are poor. There is a higher attrition rate in State colleges and universities than there is in academically similar private institutions. In view of these conditions, and the limited research available concerning poor achievers, this experimental freshman year research project was initiated. The problem of what can be done to aid the poor achiever is a realistic query. It is in the best tradition of universities dedicated to serve the people of a State to investigate such problems. The basic question being asked in the research program is, "Do students who graduate in the lower third of their high school graduating class benefit from special curriculums, training, and counseling in their freshman year of college?" The experimental freshman year program is designed (1) To examine and test current selection procedures for admitting poor achievers into colleges and universities; (2) To develop and test curriculums, teaching techniques, counseling pro |