Legal Study Of College Student Loans Personal Credit

Higher education in China has been successfully transferred from a free-of-charge system to a cost-compensated one in 1997. Nevertheless, the opportunities and activity of families with medium or low income are influenced by the highly increasing tuition. As a result, the government has implemented state-aided direct loan policies in order to help the poor students to complete their learning in schools and further ensure the educational fairness and efficiency. As we know, one system needs legal supports and lawful constricts. However, state-aided direct loan institution still an administrative rule lacking of legal constriction and steadiness rather than a serial of effective laws after being revised for several times. Consequently, the percentage of violation of contract for state-aided direct loan is up to 28.4% and recalling of those loans are very hard for commercial banks, as the educational ministry shows. Although these only happen in several colleges, the effect of demonstration cannot be ignored.This paper are divided into four parts to illustrate this situation and put forward some related proposals for the legislation. In the first part, the general situation of state-aided direct loan and personal credit are introduced. It is mainly about the history of state-aided direct loan and personal credit, general concepts , current state-aided direct loan policies and repayment situation. In the second part, the reasons of blemish of personal credit are analyzed. What's more, the result shows the main reasons are their low salary after graduation and lack of related credit law. In the third part, state-aided direct loan policies and personal credit law in developed countries are introduced and assessed. In the last part, some legislation proposals are put forward for state-aided direct loan in universities and colleges. These proposals are mainly from the legislation of state-aided direct loan law, including some specific aspects. For example,we should vary the style of state-aided direct loans, clarify the methods of repayment of their loans and give more punishment to the violation of contracts. In addition, we should improve related financial and economic laws and legislate a law to protect the personal credit of higher school students.