A Policy Analysis On Collection Of U.S. Federal Student Loan

It’s well known that Chinese higher education took place unprecedented changes during the past decades. The most impressing of which is the accomplishment of mass higher education. With the cost-sharing theory was gradually accepted by the government and the society, a series of reforms and policies on students aid have gradually designed and developed. In the whole aid system, the national student loan system is clearly one of the main policy instruments. But with the gradual expansion of the volume of student loans, loan default rate has been high. Therefore, from the sustainability of the system point of view, repayment research is becoming increasingly important.The U.S. student loan system may be the most matured one on the world now, and the corresponding design of the system may be also the best. There are thousands of articles which attempt to sort out a comprehensive U.S. federal student loan system. Author hereby analyzes the whole history of U.S. Federal student aid system, and a thorough exposition to its core-the federal student loan system, then outlines the federal student loans repayment history and current status. Upon this, the author builds a theoretical framework for analysis:the default rate of Federal loan is mainly affected by the student’s willingness, objective repayment ability and the design of specific terms. The author also analyzes the relationship within students’ personal factors, learning and employability, and the economic and social conditions, etc. the author further examines the four ways which affected the default rate of student loan based on this framework of U.S. federal student loan aid system. Finally, the author gives some suggestions on Chinese related policy design.