The Feasibility Research Of Social Security Card Reducing The Risk Of Student Loan

With the increasingly accepting to the cost-sharing theory of higher education in the world, every nation begins to accept the system of higher-education-charge, the reform of the higher-education-charge system is imperative under this situation. Under the direction of the cost-sharing theory of higher education, China began to reform the system of higher-education-charge from 1997. The problems of poor students stood out in the process of reform. So student loan program comes into effect from 1999 in China.Student loan is an important mean to assure education fairness, an important measure to resolve education cost for poor students, and it's also a good policy for people and the whole country. But we will go through a long time to grope because we carry out this program in the first time, it is certain that we cannot estimate all the problems in the process of loan program. So many places in the program do not accord with the reality of our country whether the mean body of providing loan or returning process. All of these lead the student loan to develop slowly. On the one hand the risk of default is high; on the other hand the contradiction between student loan demand and scale is prominent. In this period many scholars study the faultiness of student loan program from different side, they wish to advance this program by policy adjustment to resolve the outstanding contradiction and problems, and at last to lead this program to a right direction. Student loan makes some progress under these scholars'efforts, but the gap between the scale and the demand of student loan, the rate of default, the slow development of loan program, are still represented today, student loan does not satisfy the demand of poor students for higher education.This thesis mainly discuss how to avoid the high default of student loan under which individual credit system is undound, students often move from one place to another after graduation, banks hardly reclaim loan. This thesis tries to resolve this problem by Society security card, which means once students break the faith the banks have an imperative mean to force them to return student loan. During the research, the author analyze this phenomenon by Game theory, which the banks are not willing to offer student loan and many students who get student loan is negative to return, then the author sets up a returning process of Society security card to reclaim compulsively principal, interest and penalty. The author wishes to change the current result of Game between the bank and students by enhancing the default cost of student with this process, and to lead student loan program to a good future. At last this research proves this process is feasible.