A Study On Government Function In Student Loans

The government participates in Government-Subsidized Student Loan, which not only has theoretical necessities, but also is the practical requirement. Based on the theory of public goods, Government-Subsidized Student Loan has rivalness and excludability in consumption to some extent, and positive externality is also in existence, so it should be deemed as a kind of interest-overflowing quasi-public goods of finance, which requires government's participation so as to come into being really effective provision of loans. According to the theory of human capital, present policy of Government-Subsidized Student Loan brings disadvantageous influence on balanced develepment of regions, which needs central government to adjust overflowing human capital via financial tranfer payment so as to make up unbalanced development of regional human capital because of policy mistake. The theory of public finance reckons, the areas of government functioning commonly are the areas of market failure, and student loan is just a typical case of market failure, which provides enough excuses for government intervention. As a basic attribute of modern government, the commonality of government corresponds with public welfare of Government-Subsidized Student Loan, which determines government to shoulder direct responsibilities on loan's execution.In practice, since Government-Subsidized Student Loan executed in 1999, it unveils the print of government participation, which objectively ensures the sustainability of student loan career in our country relying on mighty government intervention. However, there have been some shortages in government intervention, such as lacking in laws, excessively relying on administration and weak in financial intervention, which influence the key taches in lending and recovering, accordingliy baffle the development of student loan to some extent, its stability, sustainability and scientificity are still in weakness. It is obvious that our government still hasn't found right position in the period of intervening student loan, hasn't insisted on the principle of'something should do or not to do'and chose proper intervention modes so as to relatitive exactly orientate government functions, exerting its effect in the implementation of student loan.The dissertation takes governmental function executed in student loan as an object of study, mainly adopting the methods of theory research, comparative research, policy analysis, telephone interview and network investigation to discuss the functional meaning of government's participating in student loan. Firstly, the dissertation begins with practical request of government's intervening in Government-Subsidized Student Loan (actualities and problems), choosing four developed countries that successfully execute student loans, such as U.S, Canada, Australia, U.K and four developing countries that successfully and unsuccessfully execute student loans, such as India, Thailand, Ghana, South Africa as typical cases, separately conclude the common experiences and lessons from governments'participating in student loans of developed and developing countries. Secondly, the dissertation educes theoretical behavior of government's participating in student loan based on the behavior by government's providing common quasi-public goods, infers practical behavior of government's participating in student loan via consulting typical counties'experiences and lessons at the same time, orientates the function on government's participating in student loan from theory and practice. Lastly, the dissertation combines the shortages of government's participating in student loan in our country(a comprehensive judgement based on policy analysis, telephone interview and network investigation), assimilates the funcational meaning of government's participation in studeng loan, bringing forward concrete consideration of ameliorating governmental function on Government-Subsidized Student Loan in China.The dissertation advances the functional meaning of government's participating in student loan from three aspects, such as perfecting law-making by government and improving executed effectiveness of laws; providing financial support, including directly provide loans, subsidize lending banks and reduce the repayment burden on students; carringing out administrative regulations, provide various basic services for student loan operation via market entry regulation, price regulation, information regulation and quality regulation. On these bases, the dissertation proposes to optimize decision mechanism of government, realizing the equity and scientificity in policy making of student loan; Via propelling law-making of Government-Subsidized Student Loan, realizing'there are laws to go by'in loan operation; Via perfecting multi-form financial intervention, ensuring the equity and efficiency in the execution of Government-Subsidized Student Loan; Via executing administrative regulations, macroscopically adjust the whole implementation on Government-Subsidized Student Loan. And thereupon, we improve the governmental function on intervening in Government-Subsidized Student Loan in real significance, then push student loan in persistent and sound development.