Research On Guarantee In The Government-Subsidized Student Loans Scheme (GSSLS)

The Government-Subsidized Student Loans (GSSL) is a non-guarantee credit loan, which is not in accordance with commercial criterion of commercial bank. The banks will face the risk of losing loan, so the banks are unwilling to grant the loan, and reflecting the phenomenon of "sparing loan". It is an urgent task to reform GSSLS to promote GSSL. Firstly, the thesis analyses the realistic environment of GSSLS, namely, after State Council office released File No. 51 in June 2004, especially analyses the establishment of "compensation on risk" of the new policy, points out its problem and unreasonable place, so GSSLS still need be adjusted further. Secondly, the thesis analyses U.S.A.'s FFELP(Federal Family Education Loan Program) and the methods of the SMEs(small and medium size enterprises) of our country obtaining the loan. Through comparative analysis, it is credit guarantee agency that plays an irreplaceable role in the FFELP and SMEs to obtain the loan, and makes the operation of the loan in accordance with law of the market. Then, analyzing the banks' "sparing loan" because the poor university students are of neither reliable credit nor guarantee in the operation of GSSLS, the thesis brings forward the credit guarantee agency may be introduced to solve the problem. From the perspective of bank reform, government reform, the transition from implicit guarantee to explicit one and the development of personal consumptive loan, the thesis illustrates the necessity of introducing the credit guarantee agency to GSSLS. And from the perspective of the current guarantee agency's situation, the nature of poor university students, the leading role of government in the guarantee agency and the reference to foreign experience, the thesis illustrates its feasibility in the GSSLS. Finally, the thesis proposes building the policy-related credit guarantee agency for the poor university students to get the loan from the perspective of guarantee. Then using the principal-agent theory of the economics of information, the thesis analyses the established GSSLS's credit guarantee system , and analyses the principal-agent relationship between the participating subjects, brings forward the prompting and controlling measures between different participating subjects to play the greatest role of credit guarantee agency and to realize the sustainable development of GSSLS.