Study On Obligations Of The Employer In The National Student Loan

In recent years, the national student loan work has been promoted quickly, and has made great achievements. However, there are still a lot of problems. Firstly, Coverage of the national student loan is relatively low. There are many college students who did not apply to the national student loan. The rate of national student loans is unable to meet the needs of poor students of colleges.Secondly,the applied amount of national student loan is too small for impoverished college students to pay their tuition fees and living costs. Thirdly,the development of national student loan between regions and schools are unbalanced. College students face unequal opportunity in applying to national student loan. These issues are illustrated as "credit crunch" phenomenon in the financial institutions. One of the most important reasons for this phenomenon is lack of employers'obligation to national loan borrower graduate pushes up the loan default and delinquency rates. It discourages financial institutions and induce them to make less loans. China's college gross enrollment rate will reach 40% in 2020. So many young people in Colleges and universities receive higher education, the development of national student loan for the development of higher education and its importance is self-evident.Research on employers' obligations to national student loan and promote the healthy development of the national student loan, has both important theoretical significance and practical significance.The development of China's national student loan system has undergo six stages: the exploration stage, the development stage, the stagnation stage, the reform stage and the improving stage. As time goes by, the practical experience of national student loan become more and more rich, and the national student loan system is more and more perfect. In order to improve the rate of recovery of national student loan, the fund security of financial institutions issuing the loan and improve incentives for financial institutions to issue more national student loans, so as to promote the national student loan work being carried out smoothly, at the beginning of the establishment of the national student loan system, laws give the employing units of the national student loan commitment. With the development of the national student loan system, more and more people are entrusted with the employing unit in the national student loan. So far,employers of graduate who borrowed the national student loan in China are assumed six main obligations. They are overdue obligations, the duty of disclosure, accept contact compulsory, compensatory obligations, exposure incidental obligation.In order to improve national student loan system in a short period of time, China takes a quick and decisive action with one-step in place to scheduled system, chosing a compulsory system in the way of vicissitude institutional change. The changes to a mandatory supply system is based on experience, rather than according to practical needs, so the system may not meet the needs of the development, and the low efficiency problem is inevitable. The change of national student loan system in our country takes the mandatory system changes, featuring a great and a high frequency variation. Because the change direction is not too clear, it leads to the system changes constantly. Almost every year there will be a new policy of national student loans, and the previous policy are to be adjusted. The government and the relevant departments frequently issued orders and regulations, but they are always not so harmonious, even contradictory and conflicting. It is for this reason that the employer obligations in the national student loan does not get the system of general fitness and the rationality with system's original design. The operation of the system implementation is not smoothly and the mechanism of other relevant system arrangements can not achieve its perfect function, thus diminishing utility the system. Either from the dynamic aspect of view or from the static aspects, efficiency of system is low. In some extent, it is even said to have great negative effects. The employer obligations in the national student loan in China, not only failed to promote national student loan recovery rate, but also played a role in pushing high national student loan delinquency and default rates. In order to ensure all students who need the national student loan can obtain the loan, it is necessary to review the obligation of employing unit in national student loan and reset their obligations. The most important role that the employing units in the national student loan would take is to improve the efficiency of the supply of national student loans.In other countries and regions, employer usually are assumed certain obligations in the national student loan just like China. However,their obligations is different from that of China. The obligations they undertake includes:provision of employment information, interest withholding, withholding and issueing with the proof. Student loan obligations assumed to the employing units are not too much. Most countries and regions assume the employing units with only one obligation in the national student loan. Few countries and regions assume the employing units with more than two obligations in the national student loan. In these countries and regions, implementation of obligations for the employing units to is not too difficult, and cost is not too high. These features inspired us to give the employer obligations in national student loan as little as possible to aggravate the burden.The law should rudece the burden of the employing units as could as possible and improve the national student loan recovery rate.It should try to consider the national actual situation as could as possible and make the policy adapt to the actual situation.China's national student loan repayment methods adopt a phased manner. The employ of this payment has been widely criticized. This repayment cannot make national student loan requirements to achieve the economies of scale, unable to make external validity of the national student loan to be internalized, unable to make the information asymmetry in the national student loan to be improved,and unable to make the national student loan risk aversion relatively easy to overcome. So there is strong demand for change. To alleviate the rising cose of national student loan, it neccessary to adopt repayment according to the proportion of income, the personal income tax and to implement full management, according to the proportion of income. Obstacles of repayment system should been cleared. Technology progress in personal income tax make the payment according to the proportion of income get ready conditions. Repayment methods of China's national student loan should be taken according to the proportion of income instead of the non-efficiency of fixed instalment repayment. In one hand, since tax authorities of the state have already covered all university graduate employment areas, and tax management information system has been formed after years of construction, the tax authorities have obtained the ability to control the risk of national student loan recovery; In the other hand,the tax authorities have the advantage of low cost in loan recovery, so tax authorities should not only participate in the recovery of the national student loan, but should participate in the recovery of the national student loan with the status of loaner. The tax authorities with the identity of the national student loan recovery in the recovery is responsible only for the issuance of national student loan but not responsible for the recovery of the national student loan, thus the cost of the national student loan management will be greatly reduced.If mechanism of tax authorities with the identity of the national student loan recovery has established and the employ unit bear withholding obligations, the state can cancel the obligations which the employing units bear now,such as overdue, disclosure, receipt of compulsory contact, compensation obligations and exposure incidental obligation. In order to guarantee the rights of graduates who borrowed from the national student loan funding and take a duty where the state encourages,it's suggested that the employing unit should increase the obligation of giving proof. It also suggested the state develop a national student loans act as soon as possible, clearly defined with employing units of obligations to withholding and issue proof. It's proper to abolish obligations of calling in a loan, disclosure, receipt of compulsory contact,compensation as well as the obligation of exposure incidental which previously undertaken by employing units.