Construct Of Diversified System For Student Loan From State

With deepening of educational system reform and uninterrupted expansion of higher education volume, the education tends to transit from elitist education to mass education. With the tuition going higher, the number of college students from families in poverty is growing continuously, and the equality in education envisages serious trial. For such a reason, China promulgated the policy on student loan from state in 1999, which has been implemented nationwide since 2000. During the implementation of the policy in the past seven years, the policy on student loan from state has been continuously regulated and improved with some achievements, which are widely received among the students with economic embarrassment and the social public concerned. However, the expected effect has not been reached. Systematic and thorough study of issues existing in policy on student loan from state and its implementation will have great significance for accelerating continuous improvement and development of the policy on student loan from state. This thesis is divided into three parts, which carries out the study of related issues concerning the student loan from state.Part I introduces the practical background and theoretic basis for promulgation of the policy on student loan from state.Practical background for promulgation of the policy on student loan from state: 1. Changes to policy on fee charging for higher education; 2. Expansion of enrollment volume of colleges and universities; 3. Previous student grant restricting the development of higher education.Theoretic basis for policy on student loan from state: 1. Theory of equality in education, which means all the individual persons from the same society should be equal in the aspects of opportunities of being enrolled, course of education and result of education, while any differentiated treatment or unfair conditions will be deemed unequal for being educated. 2. Theory of sharing education cost, i.e. the principle under which"those who are benefited should make the payment". 3. Theory of social support, which means that the individuals, groups and state should provide assistance to the weak social groups, i.e. those with difficulties in social life.Part II analyzes the content and implementation situations of policy on student loan from state.Based on introduction to main contents of policy on student loan from state this Part describes ,the first it analyzes defects in design of policy on student loan from state. The first defect is the design error of the subject to whom the loan is given, i.e. conflict between the nature of publicity of policy on student loan from state and the nature of profit-making of commercial banks; the second defect is the lack of efficient inspiration mechanism, i.e. the three parties of government, universities and banks lack the enthusiasm to use the policy due to the fact they have to bear certain responsibilities. The third defect lies in unreasonable design of the risk repayment mechanism. Government and universities will have to take the risk for delay or failure in repayment of the student loan, and sometimes, the students who are really in poverty may not get the loan. The fourth defect is that the mechanism to recover the student loan from state should be further improved. For the student loan from state, the repayment period is too short, and the mechanism of loan recovery is too limited. Thirdly, it reveals problems occurring during implementation of the policy on student loan from state, i.e. insufficient attention from governments at different levels, lack of initiative of colleges and universities, lack of enthusiasm of banks, and difficulties of students in repayment, which are the influencing factors that restrict the implementation of the policy on student loan from state.Part III forwards countermeasures for construction of the diversified system on student loan from state. In view of policy on student loan from state and issues concerning its implementation, this thesis forwards countermeasures for construction of diversified system of students loan: The first the student loan distribution organs should be reasonably established, and operation flow process of the student loan from the state should be strictly stipulated. Secondly, it actively propels the diversified system of student loan. Diversified classification of student loan. Except the student loan specified on the state policy, we should also establish the pattern of student loan by providing commercial loan with guaranty and low interest, and supplementary ordinary commercial loan. 2. Source of funds for student loan from state should be diversified. Funds may be collected by means of the financial appropriation from the state, issuing of education lottery, donations from the social public or enterprises, and low-interest loan from international banks, etc. 3. Patterns or repayment of student loan from state should be diversified. Different patterns should be designed on repayment made proportionally according to wages, repayment by installment according to loan classification, lump sum repayment at demand, and reduction or exemption from repayment, etc., which will enable the distribution and repayment of student loan to step into the way of good circulation. Thirdly, the diversified system of student loan from state should be guaranteed, which means sound legal guarantee, honest credit guarantee and government guarantee with execution force, how to assure implementation of the diversified system of student loan from state.