Study On Consummation Of Legislation And Policies Of National Student Loan By Commercial Banks

With the development of the Higher Education,China has reformed it Higher Education System,and began to required her students to pay tuition fees.At the same time,China has established a financial aid system to help those students from poor families.The financial aid system includes such measures as scholarship,direct aid,student loans,subsidies,and waiver. Amongst all these methods,National student loan,which covers the most students,is the overwhelming one.It has been warmly welcome ever since its experiment.Nevertheless,thanks to the shortcomings of the laws and policies relating to this business,the development of National student loans has not been smooth.Until today,the supply of National Student loan is still not antiquate.In order to seek a long-time and effective resolution to ensure its enough supply,this paper analysizes the key characteristics, history and theoretic basis of National Student Loan.This paper also points out various problems facing National Student Loan from the legislative point of view.Finally,this paper gives its own opinions and suggestions on how to consummate and better the legislations and policies of National Student Loan.Firstly,the author analyzes the meaning,risk merits,evolution history, and the based theory of the National Student Loan.The Nation Student Loan aims to help poor students to pursuit their own value of life,thus realizes social justice,and constructures the harmonious society.The National Student Loan has not only the shared risk characteristics of all loans,but also has some of its unique risk characteristics.It will bring the bank credit risk,legislative risk,reputation risk,financial risk and operational risk,etc..From its birth in 1999,the National Student Loan has experienced 8 years' changes and conciliations.During this period,the credit criteria has been lowered and it has been more and more something like policy loan.In fact,this change has made the correct way to fulfill the requirements of its economic and legislative theory.Viewed from the economics theory,the National Student Loan is a kind of competitive whereas not exclusive product,bearing position external economical utility. Therefore,the National Student Loan is a quasi-public product.The government shouldn't make it totally controlled by market powers, otherwise its supply will inevitably not be enough.Besides,the National Student Loan requires the obligor student,who directly gains benefits from this product,to repay all the debt.This assignment of obligation best satisfies the theory of human capital and allocation of Higher Education cost.From the legislative point of view,the core value of Nation Student Loan is to realize the fairness of education,and ensure every good student's opportunity to go to the university and prevent their chances to be taken away by their family's poor living standards.To realize such law value,the legislative structure of the Nation Student Loan should embody the contradiction and unification between the rights,obligations and duties of all the entities.Amongst all the activities concerning National Student Loan, there are some relating to private pursuit,and some others relating to public benefit.The legislation of Nation Student Loan should protect private benefit,and ensure the pubic benefit as well.Its core aims and goals are the same as those of Economics Law,therefore we should utilize Economics Law to reconcile the legislative relations of National Student Loan.Afterwards,the paper analysizes the existing problem confronted with the present legislation of National Student Loan.Generally speaking,the legislation of National Student Loan are changing and becoming more and more better.Nevertheless,some big troubles are still there.Firstly,the lack of the government's enough obligations,together with the over-burden of the duties and obligations on the commercial banks and universities,leads to the inadequacy of its supply.Secondly,the entities legislation has some shortcomings,which seriously impairs its efficiency.Thirdly,some elements of National Student Loan is not reasonable and can not meet the diversified demand of the poor students.Fourthly,the highest legislation for the National Student Loan is government ordinance,whose level and effect is relatively low.Fifthly,there are still some conflicts between the legislation of National Student Loan and other laws.Sixthly,we lack the specialized inspection law to cope with unique National Student Loan. Seventhly,our social credit legislation is not so satisfactory.The paper at last gives the author's opinions and suggestions to consummate the legislature of National Student Loan.Given the present troubles and problems that National Student Loan system are confronted, we should redesign another system of policies and legislatures.The new system should fully embody the National Student Loan's internal core character of quasi-public product.We should require the public finance to entirely subsidize the potential risks and losses that National Student Loan will inevitably incur.Then the business entities in the market will have no worries about any losses,and will be much more willing to supply the product to fully meet the market demands.Focusing this gist,we should adjust and reconstruct our National Student Loan legislatures,including, but not confined by,dictating the public finance to fully compensate any realized losses of commercial banks by National Student Loan,requiring the government to guarantee the National Student Loan,prescribing the central government to act as the backbone of the provincial governments, improving the legislation for National Student Loan entities and including policy bank and social insurance institution as two complementary entities, adjusting the elements of National Student Loan to fulfill poor students' diversified needs,publicizing "The Law of National Student Loan" to promote the level and effectiveness of relative legislatures,reconciling and settling the conflicts and contradictions between National Student Loan legislatures and other laws,establishing specialized inspection legislatures, and improving social credit system legislation,and etc..Only by all these measures,can we make our National Student Loan legislation better,get satisfied implementation results,and subsequently realize the government's goals,which it commit and pursue through the legislation and public policies relative to National Student Loan.