The Research On Jilin Provincial GSSL Risk Management

Higher education system has been deepening continuously with the purpose of promoting social education fairness, which is not only the foundation of social fairness, but also the basic requirement of satisfactory education. On one side, the education opportunities are given to more students through the college expansion plan and improving running conditions, on the other side, the education opportunities are guaranteed through the perfection of laws and regulations. With the reform of higher education system, especially the influence of the college expansion plan and charging system, more and more students have the opportunity to come into the colleges ,However , owing to the underdevelopment of economy in China, which leads to the situation that some students lose the chance of college education for not affording the tuition. To relieve the financial burden, our country has formed a policy that uses GSSL as main body, combined with other methods such as encouragement, loan, aid, supplement, decrease to ensure the education opportunities of students. GSSL, as an important measure of university subsidizing, solves the problems of the difficulties of attending the college through providing the GSSL with the cooperation of the bank and the university. GSSL (government-subsidized student loans)plays an important part in the society from offering a loan to students in early time to granting an education loan undertaken by Commercial Bank in 1999. The problems of loan default and overdue interest appear frequently until the loan comes into repay period, which arise the attention of the government, the bank and the college. The contradiction between the commonweal of GSSL and the profitability of the bank are especially highlighted. Facing the risks, the bank adopts some negative methods to solve the problems, such as loan limitation, credit reluctance, even stopping the loan. These solutions, like increasing the requirements of loan, controlling the amount of money, reducing the number of students make the policy which aims to help poverty-stricken students not to fulfill its effectiveness. How to reduce the risks and how to establish the efficient system of loan recycling ensure the favorable development of GSSL and affect educational fairness and social justice.GSSL is a complicated process, which has such features as excessive transaction links, long repay period and intricate relationship between government, bank and college. That results in the frequent occurance and uncertainty of loan. So, how to establish the risk control of GSSL is of the meaning of theory and practice. The essay mainly centers on this point, identify, analyze and summarize the countermeasure of controlling GSSL risk. Firstly, based on the basic theory of risk management, the essay states some theories, such as risk identification, risk evaluation, risk control and so on. Then, starting from the risk management theory, the essay makes the analysis of risk identification, risk evaluation and risk control from four participators, namely, the government, the bank, the university and the student.In the aspect of risk identification, the essay draws up flow-process diagram of GSSL, and analyzes the possible risks during the process of application, approval, issue and recycling. At last, the essay reveals the existed operating risk, management risk, system risk and credit risk, and then it concludes the reasons and performances.In the aspect of risk evaluation, through the analysis the GSSL risk, the essay designs a"prisoner dilemma"matrix and ascertains an ideal benefit relationship. Choosing the GSSL students of provincial university, based on data information, the essay stipulates the evaluation model of GSSL and makes qualitative analysis with the cooperation of experienced administrative staffs of university, risk professionals and experts of government administrative department.In the aspect of risk control, the essay comes up with the countermeasures from four angles again, namely, the bank, the university, the government, the student. Through improving the system of management, standardizing risk management, optimizing social environment to strengthen honesty education publicity, improve the ability of repaying, enrich the methods of repaying, finally the purpose of reducing the risk will be achieved and solve the reality problem of high risk and high default.