Study On Repayment Assurance Mechanism Of Government-Subsidized Student Loan

Policy of government-subsidized student loan bears great significance to guarantee a sustainable development of higher education in China. However, the course of implementing such policy is full of obstacles in form of a stubbornly high breach rate of loan contract. Therefore, a sound repayment assurance mechanism shall be developed as an essential approach to implement the policy. This paper, on the basis of the related studies in this regard both in China and abroad, focused on a survey of operation of the existing repayment assurance mechanism of government-subsidized student loan and proposed possible measures to improve the mechanism under the framework of the public properties and operation mechanism of the policy of government-subsidized student loan.This paper is consisted of four parts. The first part, an Introduction, covers a general view of the documentation concerning repayment assurance mechanism of government-subsidized student loan both in China and abroad, an explanation of the context in which this study was conducted and an arrangement of the related mind set, contents and study methods.The second part expounds what a repayment assurance mechanism of government-subsidized student loan is. An analysis of the mechanism is contributed after the related definitions; furthermore, the point of view held by the author is also given in this part, that is to say, the author held that an improved repayment assurance mechanism of government-subsidized student loan will facilitate the work of collecting the loan from student borrowers, promote a virtuous circle of government-subsidized student loan system in China and will be in favor of a better entrance goal of higher education at a fair-play basis.The third part is consisted of a survey of the existing repayment assurance mechanism of government-subsidized student loan which was conducted in a quantitative survey method as well as the problems existing in the mechanism which were drawn from the conclusion of the survey through data analyses. The related causes for such problems were also analyzed in this part from the following three perspectives: the properties of the mechanism, subject orientation and development rules of the mechanism.The fourth part focuses on a definitive objective orientation of repayment assurance mechanism of government-subsidized student loan and the principles of how to improve the existing repayment assurance mechanism of government-subsidized student loan on the basis of the theories on higher education cost-sharing, higher education public products and design of repayment assurance mechanism of government-subsidized student loan; Furthermore, this part contributes possible measures to improve the mechanism, which include increasing employed fresh graduates, so as to improve graduate loan borrowers’capability to repay their student loan; improving student loan repayment system, so as to adapt to the real demand of the graduate loan borrowers; building up a comprehensive information game system, so as to better the implementation effect of the student loan repayment system; integrating legal means and credit methods, so as to advance the development of student loan repayment and binding mechanism; establishing a three-dimensional honesty and credibility education system in compliance with the development rules of mortal virtues and etc.