Case Study On Student Loans In Developing Countries

With the durative expanding of higher education scale in every country and the prevalent retrenchment of the world higher education finance which was indirectly caused by the economic crisis during the 1970s, the cost-sharing and compensation of higher education has been widely accepted by the international society. At the same time, as an effective financing mode of higher education, the student loans get prevalent welcome from many countries because of its merits in easing the burden of the taxpayers and government, repeated using through recollection, more evident equity and enhancing the responsibilities of the students. Student loans established in our country were comparatively late, which were formally implemented till 1999. During this period, the student loans in china experienced five reformations, which we could call it flexural. Whereas, there are also many shortages existed in the national student loans of our country, such as the unbalance in the supply and demand of the student loans, lacking in the system of individual credit, defective in the risk compensation mechanism, distempered in the recollection mechanism, etc. Thereby, it becomes especially important in earnestly using for reference and assimilating the experiences and lessons from the student loans developed in Thailand and India, which not only further makes for perfecting the system of student loans in our country but also enable promoting the system of higher education finance in our country.The thesis compares the student loans in Thailand and India via adopting the methods of comparative research and literature research. Firstly, the thesis reviews the history of student loans system of higher education in Thailand and India in details. Then on these bases, the thesis thoroughly compares the two countries'student loans starting from the objective analysis, targeting, fund sourcing, distribution, administration, repayment and recollection of the student loans. Finally, it brings forward some relevant advices: the responsibility of the country is indispensable, the government should participate in it sufficiently and actively assume the institution cost of the national student loans; student loans differ from other commercial loans, we have to take into account the characters of the borrowers and pay attention to the course of repayment including repayment time, repayment mode, measures for repayment forgiveness,etc; the lender should keep close relation with the students, including provide exact policy counseling in time, reminding of the repayment, notice for information modification,etc; perfecting the legislations, standardizing contract behavior and penalizing the violation; increasing the credit consciousness of the loaning students, expediting the establishment of the credit system.