Study On The System Innovation Of China’s National Student Loan

China’s National Student Loan is a credit student loan which is jointly promoted byChina’s central and provincial governments. The commercial bank, which is determined bythe state through the tender, is responsible for issuing loans. It’s for the full-time collegestudents, graduate students and second bachelor’s degree students, who have the economicdifficulties in colleges and universities. And it aims at helping them to pay the tuition,accommodation fees and daily expenses during school. In the case of China’s serious incomedistribution and a high proportion of poor, the development of national student loan is theneed to compensate for market failure and to achieve the equal educational opportunity andthe human capital accumulation.China’s National Student Loan is carried out in1999. Up to now there are still somedefects, such as, lack of strong institutional constraints, some unreasonable terms, lack ofscientific and systemic management and effective performance evaluation. The reasons ofthese problems are: lack of supporting laws and regulations, unsound managementenvironment, insufficient government conduct, colleges’ overlook on the student loans, andstudents’ heavy repayment burden, etc. Therefore, improving our student loans, by using avariety of management theories and methods to have a depth analysis and full demonstrationfor National Student Loan, and learning the successful experience of student loans fromdeveloped countries at the same time, is a great need to solve the theoretical and practicalissues.On the basis of a profound analysis of the causes of the national student loan problems,the author puts forward some targeted suggestions to improve the national student loan system.Firstly, the environment construction of the national student loan system should bestrengthened, including the conduct of the legislation work of National Student Loan, and theimprovement of China’s personal credit system. Secondly, the irrational factors in studentloans should be revised, and rational loan products should be developed. Then, the rights andresponsibility of the participants of national student loans, including government, banks,universities and borrowing students, should be specific to do their job and mutually reinforcing. Finally, two innovations are proposed, namely the establishment of a nationalstudent loan policy bank, and the implementation of an effective performance evaluation forthe implementation of the main, which helps to solve current problems and contradictions inthe process of national student loans implementation from a certain extent. It would betterpromote disbursement and recovery of national student loan, and to achieve its sustainabledevelopment.