The new Harvard-Radcliffe loan program, established last Spring, raised the interest rate for student loans by four per cent this Fall.

The increase surprised many undergraduates since they received no formal notification of the change. R. Jerrold Gibson '51, explained that the changes were announced in the April issue of the Harvard Gazzette and in the Commencement Issue of the Crimson. Gibson mentioned no direct attempts by University officers to notify scholarship students of the change before the new loan forms were issued this August.

Under the new plan, some loans to students from families in the $18,000 $25,000 bracket and higher will cost as much as $400 more than comparable loans accepted last year.

Loans to students receiving Federal subsidies will carry smaller interest rates.

The new loan program, however, offers benefits in other areas. Since the Federal government now guarantees Harvard's loans to its students. Harvard can release an extra $200,000 from its endowment for undergraduate loan funds this year.

"Loans are the new field of expansion in financial aid." Gibson said, "Students will be graduating with a higher total indebtedness than ever before."

Gibson said that loans--rather than scholarship--will cover most of this year's rise in educational costs. "Expansion of available loan funds is meeting this situation in the only responsible manner." Gibson added.