Comparison On Chinese And Japanese State-subsidized Student Loan System

With enlarged university students enrollment and the gradual implementation of the system of cost sharing in higher education, the issue of state-subsidized student loan arouses major public concern. Since the adoption of the policy of state-subsidized student loan in 1999, government departments have been trying to coordinate the interests of all parties concerned so as to ensure the smooth implementation of this policy. However, the sustainable development of student loan policy is restricted due to misinterpretation and wrong implementation even though economic pressure of students living under finial hardships is lessened and equality of educational opportunities ensured. In China, the mismatch between what policies are aiming at and what commercial mode is operating leads to credit squeeze of commercial banks.Differences between regions, universities and individuals are ignored and student loan is hard to reclaim because of economics pressure. However, over the long history, Japan is highly experienced in its student loan system. Yuyinghui (now recognized as Japan Student Service organization), which enjoys good reputation in international society is a good case in point. Thus, the research and analysis on Japanese student loan system carry reference implications. This article gives a comparative analysis on background, development history and major differences in Chinese and Japanese state-subsidized student loan system and provides an effective reference mode for improving China's student loan system.This article can be divided into five parts. The Introduction Part describes research aim, situation, and research methods as well. Part Two : description of background, development course and major problems in China's state-subsidized student loan system. Part Three: detailed introduction of Japanese student loan system, including introduction of Japanese development scale, tuition management systems and student loan policy in higher education. Part Four: comparison and contrast in Chinese and Japanese current student loan systems. Part Five (a key part): detailed description on how to borrow Japanese successful experience in student loan system and improve our current student loan policy. The author argues that we can refer to the experience of Japan Student Service Organization and establish national policy banks to assume responsibility of fund collection, release and reclaim in student loan. In addition, the reclaim ratio can be increased by many means. Regional and individual differences should be taken into consideration in adjusting credit limit and return deadline. Concerned laws and policies should be improved.