Show Babson's Authentic Statement By Roger W. W Babson Because of the multibillion multi dollar losses in stock values alucs since late May many have asked me how the stock mar mars ket will affect college enroll enroll- ments Will parents be able to meet college expenses or orwill orwill orwill will students be withdrawn and md enrollments slump MOST PARENTS CAN MAKE P PAYMENTS Yi A No one knows how many parents have suffered serious serous losses in the market But I 1 suspect some parent parent investors may find it difficult to put their hands on large amounts of read ready cash this fall faU We know that many parents have been investing in stocks because because because be be- cause income fixed securities just haven't seemed to keep pace with rising educational costs College authorities tell me that parents who have sizeable sizeable sizeable size size- able investments tend to give their children relatively rich college budgets These often include model late cars generous generous generous gen gen- erous sums for personal services sere ices and amusement items Heavy cutbacks could be made in budgets of this kind without sacrificing education Most 1 college financial officers believe also that with the great variety of college loan programs no worthy student will be he forced out of college for lack of funds PARENTS WITH NO STOCKS I am considerably more concerned concerned concerned con con- about another group of parents those in the income bracket College financial officers tell me ire that the financial statements statements statements state state- ments submitted by these parents parents parents par par- when their children apply for loans or scholarships indicate indicate indicate indi indi- cate a generally serious financial financial financial finan finan- cial situation Very few own stocks have perhaps a few Cew shares of Mutual Funds Most carry heavy mortgages and andare andare and andare are paying for model late-model cars out of current earnings An appalling number either have accounts at best besta no no savings or a few hundred dollars v ram Iam gl glad d to sa say ll That at many carry some life insurance They do what they can toward toward toward to to- ward the education of son or daughter However if any great number in this group were to be thrown out of work i or if it the many working mothers mothers mothers moth moth- ers in these families should lose employment college enrollments enrollments en en- might be affected TilE THE THIRTIES AND THE SIXTIES College enrollments in 1927 38 totaled In 29 28 the panic year enrollments did not drop but increased by And in 31 30 another were added for Cor a total of some Not until 33 1932 was the crash reflected in enrollments and that was but a five percent drop Therefore Therefore There There- fore I believe most parents will have no trouble financing worthy children The cannot be compared compared com com- pared with the Our credit structure under the I watchful eye of the Federal Reserve is on a vastly sounder sound sound- er basis Banks have been insured insured insured in in- against the kinds of runs that took place in the Most home mortgages are guaranteed Many new industries industries industries in in- such as electronics electron electron- ics chemicals and the preparedness preparedness preparedness pre pre- effort have made our economy 1 y dynamic B By law Federal Federa Employment Act of oC 1946 the government is obliged to try to offset depressive e economic factors THE TIlE SMALL PRIVATELY ENDOWED COLLEGE College enrollments h hay have a v e tripled since 1929 to over In 1960 Dr Ronald Thompson an authority on college population projections estimates that this falls fall's enrollments enrollments enrollments en en- will reach By 1965 his Ills studies predict will vill be enrolled and by 1975 The question ques ques- tion Lion is not one of the effect of the current market gyrations on 63 1962 enrollments but rather of how to find the faculties faculties fac fac- and facilities to meet the fantastic increase in de de- de- de mand The real developing problem is this Public colleges and universities supported by taxes taxes taxes tax tax- es are already i n g their theil facilities at a rapid rate Small privately endowed li liberal liberal lib eral arts colleges will be harder and harder pressed to compete or even to maintain maintain maintain main main- tain what they already have There must be considerably more financial support of the small privately endowed liberal liberal liberal lib eral arts college Parents who see the uncertainties uncertainties uncertainties of life ahead are willing willing wil wil- ling to go into debt for education education education tion and things worthwhile Many say the use of oC saving we all may be blown up before long And if there is no nuclear war surely inflation is ahead so let us take a chance for lor the childrens children's children's childrens childrens children's chil chil- drens dren's sake I think they are wise vise if the children ate are worthy v |