Study On Credit Insurance System Of National Student Loan

There is the introduction of the starting on National Student Loan based on actual cases which have a number of significant issues, and pointed out that the lack of mechanisms related to China's further development of National Student Loan System brought about the serious impact. Therefore, we must re-examine and reflect on my National Student Loan System, grasp the development of key and found its shortcomings, mature experience from abroad, establish a new mechanism for student loans, and loan delinquency thereby completely solve the problem.The first part of the paper summarized the meaning of National Student Loan System and considers the nature of its position as the personal consumption credit loan. The main objective of the establishment of National Student Loan System is that support colleges and universities through financial means, especially in the economic difficulties the students successfully complete their education, guarantee the realization of the right to education for needy students, and reflect the values and ideals of social equity. At the same time, National Student Loan System eliminates the outstanding university students because of the economic difficulties resulting drop-out phenomenon, improves the quality of higher education the ratio of students to achieve the optimal allocation of educational resources, and promote the quality of teaching progress. While emphasizing National Student Loan System and its practical significance of the sustainability of development, we can easily see that the system in the application process and there still are many outstanding issues. Firstly, the proportion of the students applying for national student loans soaring continually, which directly increased fiscal spending and bank lending burden; Secondly, the phenomenon of student loan default undoubtedly increased, causing banks "bad debts" was very serious, leading to lower bank lending enthusiasm, and hampered the development of National Student Loan System; Finally, our country's student loan system lacks of a loan default reasonable, viable settlement mechanism. The lack of basic mechanisms which is the superstructure of instability directly restricts the development of National Student Loan System. So, the National Student Loan System in present stage of development needs to explore a new set of bank lending risk compensation and control mechanisms.To address this phenomenon, this part of article proposed the insurance recovery measures for the risk of student loan that commercial insurance will be the introduction of National Student Loan System. Insurance Companies is the link between risk passing and economic compensation, and get the right of recover for student loan. This is not only able to solve the fundamental issue for the National Student Loan System and escort the development of the system, but also to expand the scale of commercial insurance, and promote the development of the insurance industry.The second part, at this stage, in light of the education system and financial position; briefly introduced the foreign National Student Loan System, such as United States, England, Japan, and Korea; demonstrate the integration and the feasibility of operation of National Student Loan System and commercial insurance system.A new mechanism of the integration of National Student Loan System and commercial insurance is that bank as the policyholder apply the students'personal credit for the insurance, the insurance companies use the professional rating agencies or their own credit assessment agencies to make credit assessment reports of students who apply for the loan, according to the reports to determine whether they meet the criteria of insurance companies. If consistent with the standards, the insurance companies agree to cover, as policyholder-banks will regularly pay the full premium in accordance with the insurance contract. When students applying for loans do not repay loans without the requirements of the agreement, insurance companies should consider as accident insurance and pay compensation for the banks, at the same time, get the right of recovery for the students. If the insurance companies think that students apply for a loan of personal credit assessment results do not meet underwriting standards, may refuse to carry out the business of underwriting, the bank would not grant loans to the students. This will not only allow bank loans - to smooth operations for the National Student Loan System conditions more systematic and standardized; students can also promote the establishment of a personal credit, forming a good personal credit, and indirectly improving the overall quality of students.The new mechanism follows the trend of the development of National Student loan System, which fully meets the needs of our student loan market, and promotes the development of the commercial insurance business. For insurance companies, the financing of their funds for the state student loan insurance to provide a solid foundation in the insurance when the accident occurred, disperse the risk timely and effectively to ensure minimum loss of the insured. Insurance companies can use their own advantages in defusing risk; they control the damage and stabled operations through reincarnating with other insurance companies around world.The view of the new part of the operation of the mechanism that bank, as the policyholder, subject to the students as a credit to insurers, requiring the insurance company to compensate for the bank when students'session of loans, is in the insurance law theory will be located in the nature of the credit risk property insurance system.The third part of the paper introduced the history of credit insurance system. With a deeper understanding of credit insurance in the system, we should master the reality of credit insurance system and the existence of defects on the view of improving the system, design credit insurance system matching mechanism, and strengthen the interaction among the various institutional coordination, and improve our national student loan credit insurance system further. Recommendations in the national student loan credit insurance based on the establishment of mechanisms, we should mainly reflected in the credit information management mechanism, evaluation mechanisms, restraint mechanism, and credit dishonesty punishment mechanism. As well, we should focus on moral credit education to strengthen the all-round improvement of National Student Loan Credit insurance system.The fourth part proposed the meaning, the subject and risk of Credit Insurance from a legislative perspective in the Basic Law, and provisions on operational issues of commercial credit insurance and different types of credit risk insurance in the details in the single insurance law. So that, it can form a new legal system that is the Basic Law as a guide to insurance and a number of single law as the main credit legal system.On the one hand, in accordance with the definition of the nature of credit insurance, the Basic Law provisions the credit insurance law included in the property insurance contract, and provide the specific meaning in a general method to restrict credit insurance underwriting risk target, and lists several typical credit risk, to make it more detailed understandable. The specific target should be covered in different single regulations in standard; but not easy to make in the Basic Law in details.On the other hand, the Credit Insurance system of National Student Loan, as a classification of, should be provided in single law under the guidance of the basic law. It primarily embodied in: the rights and obligations of the credit insurance contracts, the target of the contract, the prevention measures of risk, the credit insurance liability and exclusions, the right of insurance companies'recovery to define the conditions of the insurance. The single insurance law guides the development of National Student Loan System, at the same time; protect the legitimate rights and interests of the insurer, the insured parties and the debtor to achieve maximum benefits constituents in the best form.In conclusion part, the authors concluded that National Student Loan Credit Insurance System is a category of the insurance, which apply and develop in the basis of the credit insurance. As well as with the general credit characteristics of the insurance system, and played the unique role in the credit insurance system in the National Student Loans, and so there has been a fundamental problem can be effectively solved. Along with the further development of higher education, my student loans will be faced with more severe challenges, we must speed up the legislation of the Credit Insurance system of National Student Loan and grasp modern credit insurance new ideas, learn from foreign experience related to the maturity to positively set up relevant matching mechanism positively and comprehensively establish a national student loan credit insurance system.