Research On Student Loan Issues Of Higher Education

Higher education (HE) is a kind of quasi-public goods. In terms of getting the priority on government fund, it is second to compulsory education which is purer public goods. Governments have on obligation to guarantee free entrance to higher education. It is the current practice of every country that the higher education receiver should pay a proportion of education costs. After the enforcement of the system of apportioned costs in higher education, student loan becomes one of the basic methods to ensure that students from poverty-stricken can finish their studies successfully.With the development of HE in China, student loan, by and by, has also become the main method of sharing HE costs. In various of HE loan, government-subsidized student loan(GSSL) for schooling is the primary form at present in China ,GSSL for HE refers to a form of student loan whose interest is paid by state finance, risk compensation included, some proposals for the improvement of GSSL for schooling jointly issued by the ministry of Education, the Ministry of Finance, People's Bank of China and the Supervising and managing commission of Chinese Banking in 2004 is a watershed in the development of GSSL for schooling.Before the proposals were issued, the major problems in the enforcement of GSSL for schooling were low rate of obtaining the loan, unfair structure and high rate of breaking contracts. Its issue and practice have, to a great extent, solved the previous problems. However, the deeper-rooted problems in student loan are not solved fundamentally. Breaching rate of graduates is still very high after its enforcement. Proposals only transfer the bank's risk to all levels of finance and institution of higher learning. So a system of virtuous circles from band loan to students' paying back to the bank's loan again is not established, which has greatly restricted the substantial development of GSSL for schooling.It is an essential move that college students' breaching rate should be lowered in order to help the positive development of GSSL for schooling. To establish students' awareness of honesty and credit, to innovate the design of loan-returning system and to strengthen the legitimate guarantee mechanism of student loan are all basic countermeasures to lower the breaching rate. In the aspect of lowering graduates' breaching rate, many countries in the world can provide precious experience for us to draw lessons from.This essay falls into five parts, In the introduction, the writer briefly discusses the problem studied, and the significance of the study, and sorts out relevant document afterreviewing the earlier studies. The second part involves the necessity and significance of GSSL for schooling form the aspect of economic theory and the developing trend of HE. The third part is a review over relevant policies for student loan issued in recent years and these policies are also analyzed in this part. The next part analyses the present problems of GSSL for schooling. It also explores and illustrates the root these problems. The last part is a conclusion and corresponding policies are also proposal.This essay tries to study some related problems, using theory of economics, sociology and jurisprudence for reference. As a practical study, this essay adopts interview as the specific method of collecting raw material.