Conception Of Implementing A Diversified Main Creditor In College Student Loans

Government Subsidized Student Loan (GSSL) starts to run harmonious but facing with intriguing contradiction between the government, banks, universities and the students. For example, Student loans may not be loaned; the banks do not want to loan but have to; the government and universities are in a dilemma. Through the study of the foreign Subsidized Student Loan policy, the relationship between Student loans and tuition, the effective operational mechanism and the student loans theory, we come up with an initial understanding of how to reform our student loans. At the same time, through the analysis of the reform of domestic student loans system, we find out a way to reform the student loans system to increase operating efficiency, make the student loans with Chinese characteristics and accord with the Government, banks, colleges and universities and students' needs.Although scholars have put forward some proposals, these discussions are mostly in the linear thinking mode and haven't broken through the original frame. We believe that student loans should introduce a competition mechanism, such as a diversified main creditor, insisting the principal of "base on the policy, proper attention to the trade", in order to alleviate student loans among the main contradictions and resolve the risks of student loans more effectively. The vision of student loans affected by the New Institutional Economics mechanism on the path selection system changes, Conditions under asymmetric information emerging phenomenon of adverse selection, Student loans, as well as the quasi-public goods nature theory, has a solid theoretical foundation. In this article, we explore the respective roles of student loans, the government, the banks, colleges, and students in the new mechanism; we carry out a feasibility analysis through the comparison of advanced experience in the domestic and international of student loans; at last, we analyze the factors restricting the main creditors' diversification in conditions of the cost of system reconstruction, the state's will and honesty education, etc.