Research On Two Modes For National Student Loans Business Based On A Comparative Perspective

As an important part of national financial system in aid of education,National Student Loans has helped numerous university/college students of financial difficulties to complete their degrees smoothly in china.Most higher education institutes consider two major funding modes of National Student Loan in practice: campus based and home based.By comparing these two funding modes,this paper explores the way to leverage the advantages of both modes to generate synergy in a bid to improve the higher education funding system in China and provides guidance for practice.Through theoretical analysis and literature review from both Chinese and foreign literatures,this paper discusses the necessity and significance of improving the National Student Loan.The analysis reveals that little research has been done from the perspective of comparing both campus-based and home-based loans,even though National Student Loan and its issues have drawn great attention from both Chinese and Foreign scholars.This paper innovatively combines the research with author's years of work experience in higher education student loan.In order to understand student loan business in China,campus-based and home based modes in particular,this research reviews student loan regulations and its history of evolvement,in the meantime analyses the statistical data from National Centre for Student Assistance Administration as well as the statistical data of 17 higher education institutes in Quanzhou,Fujian Province.Adopting comparison analysis and case studies,this research has identified significant similarities as well as differences between campus-based and home-based funding modes after comparing the business regulation and operation procedures.Both modes have advantages and disadvantages.In addition to their own issues of these two modes,the research has discovered that both modes of higher education student loan business are facing common issues in external circumstances,operations,and innovations,such as incomplete coverage,high pressure on risk management,low operational efficiency,bank's reluctance and low marketization on risk compensation,etc.In the light of research outcomes,this research provides suggestions to tackle the common issues and respective issues of campus-based and home-based loans.For general issues,suggestions on joint operation among government,bank and higher education situations,improving the regulations and credit reference system,providing appropriate student loan options,reduction loan administration expenses enhancing technical innovation,strengthening integrity education among students and improve the employment ability of university/college students are given.The research also provides specific advice on risk control over campus-based loans and furthering home-based student loans.