National Student Loan Default And Its Control Of China

Since the implementation of the national student loan policy in June, 1996, China's national student loan has been carried out for eleven years. In these eleven years, as an important public policy, it plays an important role on solving economic problems of students with straitened family circumstances, promoting students growth and successfully promoting educational equity. In recent years, both experts and the personnel who engage in the national student loan are puzzled by the bottleneck problem contract-break of national student loan. The number of the students who default the national student loan increases gradually, and the surging default rate cause incur great losses to the image of college students, the reputation of universities and the profits of banks. National student loan default and its control, as a burning question, have appeared before men.From the view of the current situation, banks mostly rely on the administration of the basic data of individual credit information when they govern the default of national student loan. That is the so-called credit information system. What the banks have done on improving and perfecting the detail of services, reforming the repayment methods, strengthening education and guide and so on. As the University Management, it should focus on the key question that"What kind of person should we educate, and how to educate persons". We are keen to implement national student loan policy as a great opportunity to make students can always feel cares which are from the Party and our country, and make students regard honesty and gratitude as inner moral laws and decrees, no matter the students are at school or educated. The higher requirements are put forward for universities to carry out the national student loan. Universities must be particularly aware of the education function of the national student loan policy, build scientific trust and restraint mechanism of the national student loan and prevent and eliminate discredit of students to promote the improvement of the quality of higher education.This article expounds National Student Loan Default and Governance from four aspects as following: First, it introduces the public benefits and the practical dilemma of the Student Loan Policy. This part mainly defines the concept of"National Student Loan"and"National Student Loan Default and Its Control", and it makes a deeply discuss on the practical difficulties of National Student Loan, and more over, it proposes the bottleneck problem of the improvement of the amount of National Student Loan. Second, it describes the current status of National Student Loan Default, then it approaches the reason of it from students, banks, universities, families and the state student loan policy itself, and it points out the specific influence of national student loan default. Third, it proposes management of the basic ?principles of student loan defaults and takes the developed countries and part of the internal universities'experience as a reference. Last, it introduces the behavior of universities to deal with the contract–breaking, such as the practice of the North East Normal University. Build a practicable trust and restraint mechanism of national student loan by the practice of universities.