Study On The Problems And Countermeasures Of Student Loan

The study is focused on the problems and countermeasures of student loan in China. Analysing the conditions of functioning of student loan first, student-loan's failure under the unperfected marketing conditions and the effect of government on the student loan, the paper reviews the problems and influences of student loan nonce, assays the factors that counteract the progress of student loan in the next place, brings forward the system designing and some suggestions of student loan by using for foreign experience finally. Both positive and normative methods including statistics, comparing and giving example are used in the course of study. The conclusions of the study are as follows.The moving of student loan needs pertinent institution, the demand and supply, perfect credit circumstance and relatively developed finance market. Under the imperfect conditions, as a result of converse select and moral risk, student loan market can't be set up and government must intervene in student loan. The function of government in the student loan is to provide with institution, financial allowance and supervise the running of student loan.Following problems exist in the student loan in China. First, the amount of demand of student loan is large but the supply is relatively small. Second, the development of student loan is not balanceable. Third, it is difficult to identify poor undergraduates. Fourth, the credits of some undergraduates are poor. Five, the commercial banks that supply student loan and the undergraduates who need student loan can't come to an agreement on the term of student loan.The influences of the problems are as follows. First, the policy of the nation can't be carried out. Second, the gap of the economy between east and west may be larger and larger. Third, the market of student loan may become smaller and smaller even disappear.According to the praxis of China, government providing with student loan whoseborrower can gain the allowance of the government is more feasible than only commercial banks supplying with the student loan.In order to advance the development of student loan of China, following policies are necessary. First, the government should make laws about student loan and give more allowance to the commercial bank that supply student loan. Second, the commercial banks should constitute the systems that keep away the risk of student loan. Third, the high-education-school should clasp with the commercial banks. Fourth, the academicians who borrow student loan should be a faithful man and return the student loan in time. Fifth, the system of rewards and punishment of student loan should be set up as early as possible. Sixth, the individual-credit consulting and. evaluating system should be constituted against time. Seventh, the mechanism of surety and risk-reserve should be established.