Economic Analysis Of Student Loan System

The National Student Loan System has gone through a decade since 1999. We have gain a lot during the ten years.The introduction of this system made the strong mitigation of the negative impact on the reform of the university discharge system and the entrance system and provide with the strong backing to the further development of university system,furthermore it is guaranteed the goal of a harmonious society and the steady country. At the same time, we have seen some of the problems during the decade. For example,the deficiencies of government management and institutional arrangement,the problem of"credit crunch"of our bank, the shortcomings of publicity and management of colleges as well as the problem of student default.All these issue become the"stumbling block"of the further development of our student loan system. How to solve the existing problems, improce the system and establish a sound operational mechanism in order to ensure us to achieve the grand goal that the strategy of developing the country by relying on science and education and building a harmonious socialist society .This is the purpose of this paper.In the beginning of the paper,we clarify the purpose of this study.Then we summarize the study of Chinese and foreign scholars,drawing on previous research methods and research results to put forward to the idea of the frame according to various opinion at home and abroad:we will find the achievement and problems of our national student loan system by analysing the status quo of the system.Then we begin our economic analysis according to the problem sothat to find out the solution to the problems.In the major chapter as well as the part of economic analysis,we analyze from the macroscopic ways of public goods theory and the microcosmic ways of cost-benefit theory in order to considering the question from a multi-level and multi-angle,so that the policy recommendations more persuasive and enforceability.The thread of the whole context reads as follows: Chapter I,National Student Loan Theory Reaserch.We adopt classify to review the theories of domestic and foreign in order to drawing on research methods and results at home and abroad and build a research framework of this article. Chapter II, The Status Quo Analysis of The Student Loan System.We divide five phases on the development of national student loan system: the establishment stage,the fully implemented stage, the continuous improvement stage, the bottleneck stage and the stage of journey. It is clear the results and problems by teasing the development of the system.The article adopt horizontal approach during the problems analysis,we compare from the government, banks, universities and individual students,and then come to the problems lies. Chapter III,Economic Analysis of Student Loan System,which is the focus of this paper.First of all,pry about the system from the macroscopic ways of public goods theory.We draw the result that"higher education is a quasi-public goods which have relatively large external effects"by elaborating the concept and character of public goods."China's national student loan system ensure that the development of higher education"so the system is also"a quasi-public goods which have relatively large external effects".We analyse the defect of the system and the problem of"credit crunch"according to the characteristics of quasi-public goods.Secondly, we pry about the system from the microcosmic ways of cost-benefit theory.As same as the analysis of the existence problem,we still adopt the cross-cutting approach to analyse the cost and benefit of four parts:government,banks,universities and individual students.We study not only their explicit costs and benefit but also the hidden.I believe that only in this way the policy recommendations we have drawn are more integrated and comprehensive. Chapter IV,The Analysis and Suggestions of Our Current System Policy.According to the study above,this paper presents that"set up a special bank to transact the student loan","come on the laws and regulations of student loan","improve personal credit system"and so on.Finally,we summarize the study and set out the direction of futrue development.The development and improvement of the student loan system of our country can not be separated from the mutual cooperation and mutual support of the main body.Only in this way,It will develope more smoothly and create greater glories in the next decade!...