State Student Loan Policy Implementation And Its Credit System To Build The Perfect Study

The national students' loan is an important financial measure designed to provide aid for college students from poor families under the practical circumstance of greater higher education scale and college tuition reform in our county. It is a explorative new system of improving the college financial aid policies, guided by theories of human resource capital, sharing education cost, and equality in education. As special loan for poor students, it is operated by banks, education departments and higher education institutes under government leadership, with governmental interest subsidies as well as risk compensatory funds from the government and the colleges. The national students' loan possesses sub-public property attribute, policy and welfare attribute, as well as commercial and risk attribute.Since the advent of national students' loan, it has been instrumental in assisting poor students to enter colleges, promoting equality in education, ensuring investment in advanced education, increasing the scale of higher education, and maintaining the harmony of society. However, it also encountered a number of obstacles in practice, such as difficulty in recovering the loan, difficulty in carrying out the policy, difficulty in unifying the operations, and difficulty in college management. The problems are that students are reluctant in paying back the loan and banks are reluctant in lending the loan. The fundamental reason is "contract breaching and trust lacking" behavior. The national students' loan is essentially a credit loan. The lack of credit is the biggest obstacle for the contiguous development of loan policies. Hence, proactively establishing and improving the credit system becomes an urgent issue.The credit system for national students' loan is an architectural framework of a series of policies and laws, social norms, information management and service, and social environmental support, which guarantee that students will pay back their loan in time and banks will release the funds in time while subsequently recovering them. However, establishing such a framework faces various difficulties, including infrastructural weakness, backward ways of thinking, lack of laws and enforcement, huge capital investment, low management skills, and lack of information system support. Consequently, establishing a sophisticated credit system is an enormous system project, which is extremely important and will take long time. This thesis begins with the history of the national students' loan and its current status, and then analyzes the reasons for its success, as well as difficulties and problems. In addition, it discusses the issues of constructing the credit system for national students' loan.The thesis argues that the key for establishing and perfecting the student-loan credit system is to clearly define the responsibility and the function of all participating principles: As the overall controlling principle, the government should take the guidance role (in passing laws and regulations, controlling macro-risks, and providing fiscal investment); as the supporting principle, the society should provide an ensuring function (employment assurance, supervision by press, and information resource sharing); as the educational principle, the universities should provide infrastructural assistance (trust and credit education, personal quality education, constructing student credit databases, improving education hardware/software, and enhancing the quality of education); as the operational principle, banks should carry out monitoring and managing functions (by establishing payback mechanisms, punishing mechanisms against contract breaching, as well as personal credit systems); as the core principle, students should exercise self-discipline (by raising moral and trust/credit standards, and building personal credit profiles). Under the constraints and guarantees of social norms, all above principles must mutually cooperate, assist each other, and limit each other, to form an effective credit defense line for realizing the objectives of the national students' loan program.