National Student Loan Credit Risk Research

National Student Loan is a major financial measure which the CPC Central Committee and the State Council, under the socialist market economic conditions, take to complete our college subsidy system and intensify the degree of support for the poverty-stricken students. The notable characteristic of National Student Loan is personal credit loan, namely, without collateral and mortgage you can draw the loan from bank. From the beginning of 1999 with introduction of the national student loan to the end of 2006, the country had approved an accumulated total amount of 25.3 billion Yuan loan contract and 2.92 million students enjoy loans. However, with the development of national student loans, various potential conflicts and problems are gradually exposed, such as student's dishonesty default, bank cherishing loans, the weakness of government coordination, and the difficulties of promoting business and so on. Especially, the national student loan default intensely, which cause a serious credit crisis between the bank and students, and become the current key constraints in the development of National Student Loan. So it became the most important issue among the National Student Loan. Based on the analyses and researches about development and systematic credit risk in national student loans, this paper applies classic game theory under asymmetry information condition to analyze the mechanism from which the credit risk form. Meanwhile, learns the successful experiences from foreign countries and institutionally and technically explores effective solutions for the country to safeguard against and defuse student loan credit risk.This paper consists of five chapters. Chapter 1 briefly introduces the object of study, research background, research methods and research purposes. The second chapter focuses on policies, development, status and present risks about the national student loan. And then, from different angles, it analyzes the influences and characteristics of national student loan. Section I of Chapter III stars from the market, policy, maneuverability and social awareness, and other factors to interpreter causes resulting in the credit risk. In the section II, from micro-level, it wields Dynamic Game and incomplete information to analyze the mechanism through which the credit risk is form, From which we draw a conclusion that is necessary to set up mechanisms to punish dishonesty student loans to prevent credit risk. Chapter IV introduces the successful experiences from foreign about control of the national student loan credit risk. The last chapter in this paper focuses on Countermeasures against credit risk. Based on the above-mentioned researches and analysis about credit risk, this paper puts forward the countermeasures against the credit risk from national student loan, which are as following: (1) improve the National Student Loan legal systems and practices; (2) establish and improve student loans and risk diversification and compensation mechanism; (3) set up the repayment constraint mechanism about National Student Loan; (4) introduce more flexible student loans products.