Research On After Loan Management In The Government-Subsidized Student Loans Scheme

Government-Subsidized Student Loan Scheme (GSSLS) has assisted thousands of the poor students with their studies since it carried out in China. Now, it becomes the main supporting system in the colleges and universities. As the expansion of this policy and the approaching of repayment deadline, some issues in GSSLS come out and the serious contradictions stand out. The difficulty of loan recovering, which means the high default rate became one of the important obstacles of development of GSSLS. In a country with unsound crediting mechanism, the improvement of post-loan management system which aims at decreasing of default risk is a realistic option.Basing on previous research the paper employs some methods such as interview and refers to successful experience of other countries to analyze the issues as well as their causes during the operation of GSSLS. The paper suggests that the improvement of GSSLS should manage the policy comprehensively. To solve the problems it could begin with straightening out the relationship among all interest subjects and further defines every interest subject's responsibility. The writer thinks the cooperation among national educational departments, universities and banks is necessary.The paper is composed of 4 parts.Part One, the paper analyzes the present situation of management after loan. It firstly introduces the relative regulation of GSSLS, points out the issues of management after loan and analyzes the causes.Part Two, the paper lists the characteristics of student loan. The management subjects are diversified because of the various interest subjects. The paper contrasts and analyzes two different models of management, one of which is managed mainly by bank and the other is managed by school.Part three, the paper compares the loan management of developed countries with China's consumer credit management, analyses and comment on their experiences and tries to find a suitable way to improve China's loan system.Part four, suggestions for improvement of post-loan management system. According to the present situation of China, I think educational administrative departments, banks and universities should full-fill their powers and responsibilities respectively according to the national policies, enhance the communication and cooperation, establish Incentive and Constraint Mechanism, take full advantage of the financial intermediaries and punish for the lacks of honesty and credit.