A Study On The Operational Mechanism Of The Student Loan Scheme In China

In the times of massification of higher education in China, and all college students paying relatively higher tuition, the reform of higher education financing, how to ensure the children of the poor not lose their higher education opportunity because of the financial barrier is the concern of the government and the society. Since 1999, the Government-supported Student Loan Scheme(GSSLS) has been put into practice and played an important role in the reform and development of higher education in China and have become the primary type of student financial aid. But the result of GSSLS is not as good as expected and even face great challenges. The lending banks lack incentive to lend out. The student loans are not available for quite a lot real poor students. The purpose of this study is to prode some information that can assist in the development of future policies. Firstly,the dissertation gave the introduction of the study, including why choose this subject, the literature review and the research methd . Secondly,it gave the rationale for student loans:cost-sharing theory,education equity theory and human capital theory . Thirdly,it investigated the history of the student loans schemes in the background and the history of GSSLS policy. It also evaluated the effect of GSSLS, revealed the problems in GSSLS practice and gave the causes. Fourthly, the vital part of the dissertation is about how to set up the operational mechanism of GSSLS. Six measures were suggested: (1) Set up a united means-tested fomula. (2) Borrowing students can choose the repayment methods and terms according to their income. (3) Why students default and how to low the default rate. (4)Market force should play an important role in student loan management. (5) Balance the rights and responsibility of the government , banks, institutions and the students. (6) Strengthen the legislation about GSSLS, establish a sound credit system and student date system. The last part gave the findings of this research.Also it told you the limitation of the research.