The Feasibility Research In Recovering Student Loan By Social Insurance Institution Of Our Country

Difficulty in loan recovery composes the prominent issue of National Student Loan in China, aside from the repayment capability of borrowers, mostly in that loan risk is hard to control. As a kind of credit loan, National Student Loan obviously can't utilize guarantee measures to prevent risk. The foundation of social credit system in our country is quite weak, which couldn't exert its inward effect. In this way, the task of loan recovery all remains to the recovery institution, and the result rests with the operation ability of recovery institution absolutely.Institution is the key to solve the difficulty in loan recovery. Considering the corner faced by recovery institution in existence, the dissertation attempts to probe into the feasibility of recovering National Student Loan by social insurance institution of China. For that, the dissertation firstly studies on the typical cases of recovering student loans in developing countries. On these bases, the dissertation carries through summarization and demonstration to the postulate that should be necessarily contented in recovering student loan by institution. The dissertation reckons that the postulate of recovery institution should include wholesome organizational structure, self-contained management information system, effective risk control, collaboration and enterprising of the staff as well as the support of government. Over here, effective recovery indicates that the loans could be recovered from the borrowers who have capabilities to repay the loan under regulated term.Afterwards, the dissertation carries through analyses and conclusions to the actuality and developmental trend of Chinese social insurance combined with conditions. The dissertation reckons that organizational structure and operational network of labor and social insurance in our country have comparatively been wholesome. Gold Insurance Project has progressed all right, and the management information system has taken on rudiment, but still needs further construction and perfection. Along with the coverage extension of social insurance and the implementation on the Law of The People's Republic of China on Employment Contracts as well as the establishment of Human Resources and Social Insurance Ministry, ascertaining the identities, employment status and income of borrowers won't be the bottleneck that puzzles effective recovery of student loans any more. Hidden guarantee is feasible, which could effectively recover the defaulted loans. The ability of social insurance institution controlling recovery risk has been boosting up, but seriously depending on the degrees the system holds and covers the information of human resources and social insurance. Since the career of social insurance in our country gets up late, relevant laws are not consummate, and scale expands excessively rapid, which make the operational mechanism and management criterion need further perfection, and the service levels also need advancement.Grounding on upward analyses, the dissertation reckons that present social insurance system in our country has elementarily been provided with the postulate of effectively recover student loans, but still has certain disparity from high standard. As the penetration of market economy and gradual deepness of cognition in social insurance career of the party, social insurance system of our country has been developing in favorable direction to recovering student loans, and the condition will become more mature at the end of the next five years.