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Self-Sustaining

This, the panel said, would
make the bank self-sustaining.

A borrower would also have
the option of withdrawing from
the plan at any time by paying,
in lump sum, the amount borrowed,
plus interest compounded
at six per cent, with credit for
payments made earlier.

Such an Educational Opportunity
Bank, the panel said,
would "increase the extent to
which students can take responsibility
for their own education,
instead of depending on a 'free
ride' from either their parents
or the government."

The panel said the bank would
also:

—increase the number of college
students from low-income
families;

—help public and private institutions
to improve the quality
of education by charging tuition
closer to the full cost;

—enable every student to go
to an institution suited to his
need and ability regardless of his
financial situation; and

—provide relief to middle-income
families, many of whom
find they cannot, in the face of
rising costs, give their children
freedom to attend whatever college
for which they can qualify.