Study On Securitization Of Student Loan Of Higher Educationin Our Nation

Since September, 1999, eight cities in the whole country have carried out a higher education student loan in an experimental model. The system has been expanded in the national scope since September in 2000.Higher education student loan system has made a great contribution in resolving the economical difficulty of poor students. Because the solicits students scale in the high school of our country has been extending continuously in recent years, the number of graduate students in the high school increases continuously annually. Through execution of student loan of higher education,many students are faced with unemployment by difficulty in finding work. At the same time,the rate of default is rather high by the defect of the socialty credit system.Tirdly,the majority of load banks refused to load for less benefit.In February,2002, the Ministry of Education made the Four Making and Three Cheking target to cancel difficulty in student loan of higher education.In June,2004,Education department and other departments proclaimed a policity to resolve difficulties in student loan.The current national student loan policy tries to solve the limitation of market's mechanism by biding or financial and risk allowance, enlarge the supply of student loan, ravel out the asymmetry between the commercial banks return and cost and risk in the course of providing loan, reduce the governmental intervention, let the loan run by commercialization completely,and promote commercial banks stock reconstruction .But because of the national student loans model of aiming at welfare, running by commercialization, graduates' hard-obtain employment, and social bad credit system leading to high rate of failed debts, loan's low return and high cost, although government encourage and support the loan policy, and even by order, some commercial banks also are unwilling to loan college students again. Nowadays, the national student loans' conflict between supply and demand is very serious, block national higher education's continual development.this paper introduces the asset securitization's conception,characters, significance, and history;recalls the history of national student loan, discusses the reason of loan's difficult situation, points out solving the financial problem onlyby student loan, and from the point of financial innovation or efficiency, student loan only by securitization can get good results, whether the securitization is feasible or not in the current situation;through comparing the differences between national student loan and other loan, find out their common and special characteristics, learn from the experiences of other loan' s successful securitization, in order to let it be practicable, what should be done in the course of securitization, such as providing loan, selling asset, and so on. At the same time, because of the specialty of borrowers, studies the difference between student loan and other loan in the credit rating method, and how to entrust it, the most but not the least, in our special capital market, discusses what policies should be made in order to put the securitization into operation successfully, and according to the current situation, points out the paper's weakness, how to do in the future.