The Flaw Of National Student Loan System And The Insight Into Government Guarantee System

Our national student loan has obtained remarkable result since 1999, which subsidized poor students to complete the studies. At the same time, there also exists many problems, that is, the supply is not adequate to the demand, the progress is not balanced, the rate of default is high. The reason mainly lies in the contradiction between political goal and commercial operation. The system of compensation award for risk easily leads to "the counter choice" of universities and "the moral risk" of banks, non-symmetrical information gives rise to the problems like "counter choice" and "moral risk", the government does not arrive in some aspects, especially the mechanism of sharing in the risk, therefore, it is necessary to perfect the student loan system further.The article propose the government should take upon a bigger responsibility in the system using the public good theory and the positive exterior effect theory, and also propose it is necessary for the government to avouch for students using non-symmetrical information theory and risk shift theory. Then take Jiangsu province as the example, the article explore the guarantee system of government by natural and quantitative method and contrasting method.The guarantee student loan operates successfully in the USA., there exists a standard recall and payment procedures among bank, guarantee agency and government, a complete individual credit system, ways and deadlines of payment to choose, a severe punishment on delinquents, thoughtful service and strict management of universities, which is used for reference of the establishment of government guarantee system in Jiangsu.The student loan in Jiangsu grows rapidly, functions well, but there also exists some problems, for example, some colleges under the control of city(county) obtain few loan, a few of colleges don't pay attention to the loan management, the reason is that the bank is not enthusiastic about loan. Jiangsu province is a developed province in economy, which has the superiority in the exploration of government guarantee system. In the first time, the economy keeps a rapid growth, which provides powerful financial support for the establishment of the system. Secondly, the student loan in Jiangsu has a lower rate of default, which is favorable for the benign operation of the system. Thirdly, the bank strengthens loan management, which brings the student's credit record into comprehensive management system of loan in the computer, inquiry inside the system and among the banks should be realized gradually.Jiangsu province is policy guarantee system, in which provincial government invests primarily ,bank,university and student invests auxiliary , bank guarantee agency and government share the risk together, and a suitable guarantee proportion among them is determined. The system is advantageous to solve "reluctant loan" of bank and "counter choice" of university, under which many poor students get loan. The system is also advantageous to reduce the risk because many parts participate in it. The operation of the system depends on the establishment of individual credit system as well as the improvement of the laws and regulations in the guarantee of student loan, our country should consummate the two aspects as soon as possible.