Study On Management Of National Student Loans

In the late 1980s, China began to implement the cost sharing system in the higher education. From the year 1997, a comprehensive tuition system was established in the higher education. Although this tuition system contributed to the development of the higher education in China, such system also led to an obstacle for the children from low-income families to receive higher education for the fact of the average income level in China. Such problem also results in the unfairness in the distribution of the higher education resources among different regions in China. In order to mitigate and eliminate those negative influences, the government brought about the national student loan policy in the late 20th century.National student loan policy resulted from the reaction between the increase on the higher education and the demand of sharing the costs. Essentially, this policy is a financing project initiated by the government in form of participating into the capital market by its money and supporting policy, aiming to place investment on the high-educated human resources. The emergence of the national student loan firstly relief to higher education cost sharing opportunities that arise during the imbalance in education, students can participate in advance of future income of credit activities for their own human capital investment; other hand, the national student loan for a virtuous cycle of more Cost of higher education for sustainable development, capital operation to maximize the education possible. National Student Loan Policy also reflects the introduction of the CPC Central Committee and State Council of Higher Education for their children from poor families and the rights of great importance, reflecting the state of the economy vulnerable human care, the superiority of the socialist system is the full show. It is this background paper, in the run home and abroad on development of student loans based on the description, in accordance with the order from the theoretical to the practical management of student loans in-depth analysis of problems and their causes. First, in theory, the article from the student loans, development, insight into the qualitative point of view in order to share the cost of higher education theory, human capital theory and the theory of public goods:from Genesis, said the emergence of national student loans not only meet the Higher cost-sharing needs, but also to make up for the course in the sharing of tuition increases brought about by poor families children drop-outs, high-level macro-countries to improve human capital as an important part of the stock; in the development process, because national student loan is a utility throughout society quasi-public goods, it must be provided by the State as a subject. The three theories, put forward ideas for the following sound theoretical foundation. Meanwhile, by way of researching on the process of designing and improving the national student loan policy and of investigating the present operation of the policy as well as through a field investigation on a university in the northeastern China, the author commences an motive analysis on several issues such as the failure of market function in the loaning pattern, the discrepancy on the motive of the loaning between the government and the banks, and especially the failure to repay the loan. The paper focuses on the characteristics, the present status of the operation of the national student loan system as well as the problem existing therein. Research shows that:firstly, the scale and quantity of the loan issued was restricted by the dislocation of the loaner and the promoter in the present national student loan system and the discrepancy on the value between them, which constitutes the main reason for the unbalanced issue-demand situation in the loan system; further, the lack of co-operation and reaction among the parties operating the loan system caused the failure in establishing a complete and efficient mechanism; the incomplete moral and trust system as well as the lack of administrative and legal protection for the student loan system also hinder the development of the student loan system.In such premise, The most important part of the national student loan system operation is to precisely identify the receivers of the loan, i.e. to issue the loan to the students who are most in need. This principle is not only to guarantee the equal chance of education and narrow the gap between rich and poor, but also to reduce the state financial pressure and improve the efficiency of the education resources; the author also proposes a way in perfecting the concept in government operation of the student loan policy, reforming the government financial subsidies scheme; the paper also puts forward the view that a proper government financial stimulation would mitigate the "market failure" in the student loan system; the author also designs a more humanized, more diversified repayment pattern and administration measure under the current repayment condition and limits in order to enhance the efficiency in the implement of the fund by using less money to encourage huge fund to be invested in the system; the paper also focuses on optimizing the external environment of the present policy, enhancing the legislation of the student loan system, and in meantime, on the education for improving the students' credibility to ensure the smooth operation of the policy.