Forty per cent of 4500 Harvard undergraduates are paying their term bills in monthly installments, Charles C. Pyne, Bursar, announced yesterday.

Instituted this year, the new installment plan gives undergraduates the option of paying their term bills monthly or in two lump sums, one at the beginning of each term.

Pyne said that the "pay-as-you-go scheme" had resulted from the increase in board and tuition rates instituted this year. "You can pay for everything else by the month," he said, "why not education, too?" Pyne said that the new system would make payment of the increased rates easier for most students.

To further aid the students, the Bursar's Office has initiated a new program enabling students to borrow up to $600 at six per cent interest. The program is available to all undergraduates, regardless of financial need. So far, Pyne noted, about ten students have applied for these loans.

Loans to needy students under the old aid program have also increased this year from an average of $400 to $525 per student. The University has already loaned more money to students this year than it did during the entire course of last year, Pyne announced.

In addition, the Scholarship office has attempted to further lighten the increased financial burden by easing grade standards required for the renewal of scholarships and aid grants. The University has also increased its allowances to scholarship students for personal and travel expenses.