The General Assemblies of 1946, 1948 and 1950 successively directed the Virginia Advisory Legislative Council to study and report upon student loan funds and to recommend such changes as might be required under changing conditions. The results of the 1946 and 1948 studies may be found in reports filed with the General Assembly from time to time. The text of the resolution adopted at the 1950 session is as follows:

SENATE JOINT RESOLUTION NO. 14

Directing the Virginia Advisory Legislative Council to study and report on student loan funds.

Whereas, the General Assembly of Virginia in 1948, recognizing that there are many graduates of our high schools who lack sufficient funds to obtain further education who might benefit themselves in this State if they were able to obtain such education, directed the Virginia Advisory Legislative Council to make a study and report on student loan funds in the institutions of higher learning; and,

Whereas, the Council completed the study directed and made a report thereon but found that due to temporary conditions, specifically the benefits available to veterans under Federal legislation, a proper evaluation of the operation of the student loan funds and scholarship programs of the institutions under normal conditions was impossible; now, therefore, be it

Resolved by the Senate of Virginia, the House of Delegates concurring, that the Virginia Advisory Legislative Council is directed to make a study of the operation of the student loan funds and scholarship programs in the State-supported collegiate institutions of higher learning to determine whether such loan funds and scholarships, including endowed scholarships, are meeting the needs of the youth of this State who have the capacity to benefit by, but are economically unable to obtain, college educations.

Resolved, further, that the Council is directed to complete its study and make a report to the Governor and General Assembly of Virginia, setting forth its findings and recommendations, on or before November one, nineteen hundred fifty-one.

The Council appointed W. R. Broaddus, Jr., one of its members, to act as chairman of a committee to make a detailed investigation and report on the matter. The following were chosen to assist Mr. Broaddus on the Committee: Paul H. Farrier, Director of Admissions, Virginia Polytechnic Institute, Blacksburg; B. C. Holtzclaw, Dean of Graduate Students, University of Richmond; Dowell J. Howard, Superintendent of Public Instruction, Richmond; G. Tyler Miller, President, Madison College, Harrisonburg; W. W. Savage, Dean, Longwood College, Farmville; Vincent Shea, University of Virginia, Charlottesville; William F. Tompkins, Medical College of Virginia, Richmond.

The Committee obtained data as to the several types of loan funds and scholarships financed by State funds at the various State-supported colleges, it compiled information as to the operations of the teacher-training scholarship fund, fund balances at the respective institutions, and the practices of the several colleges in connection therewith. Several meetings were held to consider this material, and after thorough study, a report was made to the Council.

The Council has carefully considered the report of the committee and now makes its own report.

The State has had student loan funds for many years. Appropriations are made to the respective institutions to provide funds for loans to deserving students.

In recent years the General Assembly has provided scholarships for persons who will undertake to train themselves as teachers and engage in that calling, scholarships at medical schools for persons who will engage in practice in rural areas, scholarships for those in training as nurses, and some appropriations for scholarships at certain State colleges without specifying in what field the applicant must engage upon his graduation. All of these programs have been affected by the operations of the educational provisions of the G. I. Bill.

Currently, G. I. benefits have largely expired, the teacher training and rural medical scholarships are in full use, and student loan funds are being employed to a greater degree than they have in the previous ten year period.

The Council, after a thorough review of the whole matter, now submits the following recommendations:

RECOMMENDATIONS

1. A system of scholarships, ranging in amount from $300 to $500, should be established for graduates of Virginia high schools who:

a. Are needy and satisfy the institution as to their lack of financial resources.

b. Rank in the upper fourth of their graduating class or score 106 or more on the American Council of Education test or score in the upper half on a national basis on a similar test.

c. Maintain in the freshman year at least a "C" average with no failures, in order to be eligible for such a scholarship in the sophomore year.

2. At first the program in 1 above should be financed by permitting the colleges to use 25% of the surplus in the student loan fund at the respective institutions with not more than half of such amount to be expended in the first year; of such half all should be expended on freshmen except that not more than 10% may be reserved for qualified sophomores. In the second year the major part would be expended on freshmen with the remainder being available to sophomores.

3. In the first two years of the program the same should be administered by the authorities at the respective colleges; thereafter the program should be administered by a central agency, such as the State Board of Education, from funds provided by the General Assembly with recipients being able to attend any college, State or private, in this State.

4. In the case of student loan funds the maximum loan should be continued at $300 per year for academic students and raised to $ 500 per year in the case of medical and dental students.

5. Medical interns and residents should be considered as students for the purpose of making loans from student loan funds.

6. The regulations of the Comptroller which are contained in Appendix A should be adhered to by all institutions making student loans.

7. Ten scholarships for dental students who will agree to practice in rural areas (comparable in all respects to the medical scholarships) should be established in the amount of $1,000 each -- eight at the Medical College of Virginia and two at Meharry.

8. The scholarships for nurses provided by § 23-36.1 of the Code of Virginia, now repealed, should be renewed and amended to delete the requirement of obtaining insurance.

9. The interest rate on student loans should be 2% while the student is in college with the interest rate rising to 4% when the note is renewed after graduation or on leaving college, without graduating or on completion of internship in the case of medical students.

10. Student loans should be considered delinquent when not paid or when arrangements satisfactory to the institution have not been made, including some curtailment, within 18 months after graduation or leaving the college without graduating or on completion of internship in the case of medical students.

11. The institution making the loan should make every effort to collect delinquent notes for a period of six months following delinquency. At the expiration of such six months' period, the notes should be turned over to the State Treasurer for Collection.