The State Student Loan Policy And Its Implementation

The quantity of the government-subsidized student loans scheme of China was increasing from 1999 to 2002. In the latter half of 2003, the scheme bogged down when the first loans must be paid. The government and correlative departments improve the scheme and hope that the problem which comes from three stakeholders such as higher schools, banks and loans students could be solved. In this situation, higher schools do not able to judge who is fit to apply loans, and do not to collect information about graduated students. Owing to the benefits, banks do not will to transact the program that is complicated, low in profit and high in risk. This is the most serious problem in the scheme. Some students are not able to pay loans before deadline, and some students don't pay loans deliberately. In this paper, the author thinks that the scheme must be led by the government. The government should improve the scheme based on protecting the stakeholders' legitimate benefits, and strengthen the function of supporting the equity in higher education. Also, we must construct the credit institution in our country, and establish the context and systems that are of great advantage to the scheme. We hope the scheme will take more benefits to higher education in our country.