The Prevention Measures On The Risk Of National Student Loan By Commercial Banks

Along with people for increasing importance of education, more and more people accept higher education. The scale of the higher education is expanding constantly, education costs are also increased year by year. In case of more people can accept higher education and the principle of fairness of education, China’s national student loan policy appears. National student loan is operated by government leadership, fiscal and subsided interest in colleges, universities, bank and government. It’s a policy loan business which helps university students, college students and graduate students to pay tuition fees as their family couldn’t afford. National student loan has policy and commercial characteristics; it’s an unsecured credit loan for personal credit guarantee. Since the implemented, it has helped thousands of students to solve the problem of tuition fees, but there are also many potential risks and disadvantages. Loan approval vulnerability student’s default, the phenomenon of credit squeeze of bank, there are more and more problems restrict the development of national student loan. The paper started from development and characteristics of the national student loan, researched the risk of national student loan causes and features, analyzed the results of student loan credit risk, compared the risk management mode between bank credit business and national student loan business, and referenced the foreign national student loan management mode.This paper’s research background is on the basis of the establishment of the national student loan, loan students’credit as guarantee, high contract broken rate in the process of project of banks, and following the problems of the debit credit and its stop, obstacle development of the international student loan and huge loan danger bear by banks. In the premise of how to cooperate government’s policy to practically help poor students solve the problem of tuition, commercial banks can manage student loan validly and form early warning system to decrease the contract broken rate and reduce ban loan danger and maintain the moderate operation of banks, which make sense to research. The paper uses literature review to support theory, uses comparison analysis to compare the past and present of student loan, the differences between China and foreign national student loan, the analysis of the nature of national student loan, and the studying of the credit risk of national student loan. It also uses empirical study method to study credit rating system of national student loan, in order to gain the countermeasures on how to protect the national student loan credit risk. This paper is divided into five parts. The first part is the introduction, mainly introduced topic background, research significance, research methods and research contents and so on. The second part is the analysis of the risk of national student loan, mainly introduced performances, characteristics, the causes of credit risk, and the consequences. The third part is the prevention of commercial banks’risk mechanism of national student loans, mainly from the type of loan, students’credit rating system, and way of payment, the insurance and guarantee mechanism four aspects of the narrative. The fourth part is the inspiration from foreign national student loan risk prevention mechanism, mainly descript from the United States. The last part is conclusion, giving a summary to the whole text, the commercial banks management of national student loan risk, mainly introduced by strengthening the student loan to control moral hazard, by establishing credit rating system to guard against credit risk, by importing the insurance mechanisms to strengthen the financial division, by improving the guarantee mechanism to protect the interests of the bank.There are two innovations in this paper. The first one is by comparing the existing repayment means; it designs a kind of repayment means which suit students themselves who have national student loan. The second one is by combining their own work experience and using the fuzzy comprehensive evaluation method to analysis the loan students’credit rating system, in order to provide banks as lending risk control indicators and giving a countermeasures reference to credit risk. In this paper, there are a lot of shortcomings. First of all, because of the national student loan is a strong policy loan business. So when the risk prevention plan is put forward, it’s easily stand on national policy. But this is not feasible in reality. Secondly, we need a large amount of data to support model applications; the author has not made in-depth research in quantitative research. Finally, as limitations and regional of foreign student loan, we reference foreign student loan risk control mode and give prevent measures, but they are not applicable.