Credit Risk Control Of Locally-granted Student Credit Loan Research

Locally-granted student loan provides financial aid to students and their family, it consummates and improve the system of state educational loan, this makes education available to more students regardless of their family. Locally-granted student loan maintains education in a balance and health development. It is very important to consummate the system of providing financial aid to needy students. Implementing in some part of our contry starting from August of 2007, our country invested around RMB 154 million, until Dec.30th of 2009, total input around RMB 119 million, covering 24 districts and 2 million students get support,Until now, most of loan did not meet mortgage terms, considering student loan experience, there is risks for locally-granted students loan. Survey on locally-granted student loan (in Shandong Foreign Trade Vocational College) shows there are four reasons for this kind of risk, which is imperfect credit system, slack loan approval system, insufficient loan management, lack of loan repayment capacity. This kind of risks affect the incentive of financial equity, influence our country's credit system, and increase government expenditures, all those will have bad affect on our educational system.Thus, learning from abroad risk control experience on students loan, the writer here raise a set of risk control system. This system includes setting locally-granted student information management system to avoid the risks caused by wrong information, establishing interest incentive mechanism to encourage loan repayment, streaming smooth loan repayment system to strictly control on default to loan. This system will improve loan repayment, control risk on locally-granted students loan to improve education development.