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Study On The Default Risks Of State-subsidized Student Loan To University Student In Our Country

Posted on:2017-05-20Degree:MasterType:Thesis
Country:ChinaCandidate:J QiuFull Text:PDF
GTID:2297330488975547Subject:Educational Economy and Management
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State-subsidized student loan policy has experienced the developing course of 16 years in our country,since it began in 1999.This policy is an important part of the financial assistance system for poor students in colleges and universities.It has far-reaching influence on society, Banks, as well as the poor students in universities. With about ten years development,state-subsidized student loan policy has make remarkable achievements in building our university financial aid system.It also lay the foundation on promoting the realization of education fairness in China.But in fact,compared to the policy and practice system of state-subsidized student loan in developed countries, we begin this policy much later. Many parts are still need to study and explore.Therefore,in the process of implementing this policy,it’s inevitable for us to encounter all kinds of problems or troubles.Based on this background,the thesis will research in the perspectives of default problems of state-subsidized student loan.It will local investigate,analyze and research the implementation of the state-subsidized student loan in our country and try to draw some useful conclusions.It hopes to provide some help for perfecting the state-subsidized student loan policy of our country.In the first part of this paper,it will analyze the basic property of state-subsidized student loan to university students in our country.From three points to analyze and expound the property:state-subsidized student loan is a kind of personal commercial loans,state-subsidized student loan is an effective way to promote education fairness, state-subsidized student loan is an effective way to share higher education cost.In the second part of this paper,it will analyze the default risk of state-subsidized student loan to university students.Making a deep analysis of the performance and the cause of the risk from four aspects:government,university,bank and student.The research show that the government didn’t establish perfect national credit system and didn’t take the main responsibility.It excessively rely on the bank to share the default risk.Also, the deadline and method of repayment are not set reasonable.The commercial banks don’t do very good at managing risk and the loan reclaim mechanism is unreasonable. At the same time, there is no early warning mechanism in the university.Because of information asymmetry between school and student, the school can’t evaluate the applicants’repaying capability that bring obstacles to recover the loan.As a result, many commercial banks don’t want to provide loans for poor students.For the university, they don’t control strictly for the applicant’s qualification. The university lack communication with banks and employers and the students in the university lack integrity education which has increased the risk of default.At the same time,many university students are short of integrity and lack ability to repay.The cost of their default is very low.These are main reasons of the student’s default.In the third part of this paper,it will analyze the risk indexes of state-subsidized student loan to university student.There are two indexes:graduates repaying capability and debtors’ credit.The graduates repaying capability index include that the student’s earning capacity which is affected by the reputation and social influence of the university,the employment trend of the students’major,the studies of the student and the student’s health.The debtors’credit index include whether he has non-performing loans record,the authenticity of family income and his household debt radio.The last part is about countermeasures and suggestions.It main suggest that government should enrich and perfect the measures to relieve the default risk of state-subsidized student loan.In the first,it should perfect the personal credit system,increase the default punishments and perfect the compensation mechanism to encourage banks to lend.In the second, the bank should make measures to deal with the default risk of state-subsidized student loan.They can improve the efficiency of chasing payment by improving the supervision level of loans and the mechanism of loans recovery.At the same time,they had better to perfect the index system of the applicants’ repayment ability and assessing risks of the loan applicants.The last but not the least, universities should have their own measures to solve these problems.Good measures like:enhance the applicant’s qualification examined before they apply, strengthen the integrity education and do a good job of graduates employment guidance.
Keywords/Search Tags:state-subsidized student loan, the poor students, default, policy
PDF Full Text Request
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