National Student Loan Credit Score Model Analysis Applications

The state education loan scheme (SELS) refers the business bank founding without guaranty to offer those poor students for higher institutions, an important means to assist the students to complete the university education and also a government economic favorable policy. Our government carried out SELS in 2000; however, the plan faces great challenges since 2003, such as lower credit-standing and repayment rate. More and more business bank reduces the scale of SELS. At present, the college students have fallen into embarrassing situation. SELS fail to develop smoothly and the positive policy spoiled by the low refund rate. Effective control and management measures need to take serious consideration to reduce the risks of business loan. And the government administration should solve the problem as quickly as possible. This paper intends to set up a credit evaluation model to assess the students loan and help the universities to do the procedures such as loan application, providing loan, loan management and loan risk control. And it also offers some significant discussions regarding credit risk analysis and control. Some of countermeasures in this dissertation will be helpful to the advantageous state loan policy.