Student Loans Top $180,000 In Latest Rise

A marked increase in long-terms loans for undergraduates has resulted in the allocation of over $180,000 to about 450 students during the current academic year.

The figure represents an increase of $70,000 and 120 recipients over last year, John U. Monro '34, director of Financial Aid, revealed yesterday.

Included in the allocation is about $40,000 to 125 freshmen. The first loans to freshmen were made last year and amounted to 8,000, which was granted to 25 members of the Class of 1957.

Monro said yesterday that the size and number of loans "will almost certainly keep growing." The annual amount of Scholarship aid has not been able to keep pace with the increasing cost of college education, and an expanding long-term loan policy has made up the difference, he remarked.

Loans Added to Scholarships

Much of the increased burden has been met by adding loans to scholarships. Of the 332 undergraduates who received long-term loans last year, 128--more than a third--also held scholarships.

Under the new system of loan administration begun in 1949, long-term grants are not due until the student has completed college and duty in the armed service, and interest is not compounded until the completion date. Previously, 41/2 percent interest started with the grant of the loan. The limit to any award was $400 during the student's college career, compared top the present $400-per-year maximum.