The Study On Source-based Credit Loan For Students From Rural Regions In Anhui

As the reforms of the higher education continue to develop, financial aid to economically disadvantaged students has become one of inescapable issues that the popularization of higher education has to face. The state education loans commenced in 1999 have already gained some achievements but some flaws on policy design and operation mechanism have also been revealed. Although the policies are being revised and improved, enormous difficulties are still found in the implementation of state education loans in the locals.Given the fact that Anhui is primarily an agriculture-featured province, college students from rural regions occupy an absolute proportion. In order to further promote education loans, Anhui Province, based on the pilot trials in five cities (provinces), has resolved to carry out intra-provincial, source-based credit loans for the students from rural regions.This paper first introduces the background in which source-based credit loans were born and the social basis for implementing the credit loans in rural regions. Since it is still in a combination process with those polices on state education loans, there exists the situation of three-bank coexistence in Anhui(state education loans by Agricultural Bank, source-based credit loans for students by Rural Credit Cooperatives, and source-based credit loans for students by State Development Bank). In this paper, the policies on student loans issued by these three banks are introduced in detail. And in light with the experiences in student loans from such developed countries as the United States and Japan, the paper focuses its analysis on the rationality and inadequacy of current policies on source-based credit loan for students from rural regions in Anhui. In addition, from other perspectives, such as the administration of financial institutions, colleges and universities, and educational bureaus, this paper conducts detailed analysis on the problems and flaws exposed in the operation process of executing source-based credit loans, and puts forward the correspondent Countermeasures atthe levels of both system and management mechanism.