Empirical Research On Improvement Of The Locally-granted Credit Loan For Students In Shandong Province

As the development of the social economy, college tuition increases every year. In order to assist the needy students with their studies under the influence of their financial difficulties, the Government increasingly endeavors to strengthen the work of student aids, and to energetically promote the reform and development of the student loan policy. Since the year of 2008, the policy of the locally-granted student loan has been gradually put into practice throughout the country, as an important part of the National student loan system. The policy of the locally-granted student loan has eased, to a large extent, the plights of financially disadvantaged students caused by difficulties in loan and schooling. With the growing of this business, defects and problems have emerged in the pre-loan and post-loan links, which requires arguments and solutions. This paper aims to conduct empirical research in the light of present situation of the locally-granted student loan in Shandong province, and tries to provide valuable achievements and proposals through the research.To begin with, the paper introduces the development of the locally-granted student loan in Shandong province, and conducts empirical research according to the present situation. The research is conducted mainly in forms of data analysis, questionnaire, interview, and visit, and covers the whole process of loaning management, in which related subjects, such as credit students, the State Development Bank, Postal Saving Bank of Shandong Province, and Student Assistance Center of education departments at all levels in Shandong and so on, are all involved. Through the research, problems are made plain. In the loaning procedure, information is asymmetric between banks and students, and effective credit evaluation system has not been established. And in the post-loan management, there is no scientific repayment management system, or diversified incentive policy, and the risk compensation mechanism is invalid. Besides, the management itself has problems that prevent it to meet the requirements of loan risk management, including lagging self-construction, lack of human resources, defects in credit management functions, and failure to establish the highly effective and mutual trusting platform between each participating subjects.In accordance with the present defects in the pre-loan link, this paper builds principal-agent model between banks and credit students based on the theory of information economics, stimulates the credit behavior when the credit system is absent, and conducts behavior analysis. Regarding the post-loan problem, the paper tends to integrate it into related theory framework of economics, and to conduct theoretical analysis in the view of cost-benefit theory, transaction cost theory, incentive compatibility theory, and risk compensation mechanism respectively.Through the analysis of defects and problems, this paper tries to put forward some proposals to improve the present loan risk management situation of the locally-granted student loan in Shandong province. On one hand, based on fuzzy evaluation principle, and according to the actual conditions of Shandong province, credit evaluation system is to be established in the pre-loan management, in imitation of the current reasonable and practical fuzzy comprehensive credit evaluation method. And primary positive tests are taken, and the results are close to reality, which can provide technical reference for related works. On the other hand, in the post-loan management, it is suggested that the loan bank should establish loan tracking management mechanism in coordination with the student assistance center, improve the risk compensation system, increase the motivation of each participating subjects, adopt diversified repayment mode. What is more, in the respect of system construction of the locally-granted student loan, construction of related laws and regulations are to be improved, and law enforcement should be strengthened. Higher education and public opinion should strengthen the honesty education and promote knowledge of educational loan.