Analysis On The National Student Loan From The View Of Economics

This dissertation conducts an analysis on the National Student Loan from the view of economics. The design of National Student Loan has solid theoretical foundation and therefore the problems occur during the implementation process can be analyzed and explained by economic theories. The problems are actually some contradictions appearing during the developing process of National Student Loan policy and thus can be resolved during the process.This dissertation can be seen as three parts. The first part gives an introduction of the basic concepts, background information and evolving process of National Student Loan. The National Student Loan is a bank loan controlled by the government, funded by the financial authority and operated under the joint efforts of banks, educational authority and institutes of higher learning. It serves the country's policy yet is operated by commercial banks at the same time. Taking our country's educational situation into consideration, basic education, especially the compulsory education in rural areas is in great need of financial input. Besides, the unbalanced development among regions leads to huge income gap among families. Given the above economic and social environment, our country's education can not rely completely on governmental financial support and, meanwhile, can not ask more money from the poor families. As a result, to improve the efficiency of the funding in institutes of higher learning, we should borrow other country's experience of National Student Loan and promote the development of our own National Student Loan market.The second part conducts, by adopting relative economic theories, an analysis of the designing and implementation of National Student Loan. First of all, by employing the theory of financial mode, costs sharing and costs allowances of college education, this part explains the economic significance of National Student Loan. The characteristics of the para-product of college education presuppose the cost-sharing rule of"Those who invest get the benefits". As our college education develops, the theory of social obligation, which holds that the college tuition should be paid by the government, has been reduced to a meaningless level. As a matter of fact, the financial mode of institutes of higher learning has been well on the way of diversification. Second, by reviewing classical economics and institutional economics, this part reveals the significance of National Student Loan as a policy financial product. Due to the commercial operation of the National Student Loan, there have been such problems as unbalanced supply-need situation and stimulation asymmetry between banks and students, which is caused by flaw and inadequacy in regulation-making. However, these contradictions can be resolved during the development process by introducing relative rules and regulations.Based on the former analysis, the third part puts forward some suggestions and solutions such as sharing the loan costs reasonably, increasing the amount of student loan and allowing more pay-back time, increasing more adjustments to the pay-back plan, students paying back their loans according to the salary condition of their job location, and improving the pattern of financial allowances, etc..