The Innovation of Student Loan at the View of Knowledge Trade

In China’s universities, the student loan is a complicated and systematic process that involves numerous interest bodies, and currently is in a predicament because of targets conflict. The university's student loan is mainly the credit of knowledge trade due to the special economic natures of the modern university and the student loan.The divisibility of the financial product makes its business a financial contract of knowledge trade and have the knowledge-type investment and finance characteristic of both the personal and social human capital. It also has the possibility of knowledge market failure. The successful development of the student loan needs banks to reinforce operation management by subdividing the products, determine loan term according to knowledge cycle, expand synergetic loan by the information superiority, choose the hypothecating method by recognizing risk source, also need government's distinguishing finance subsidies for the equilibrium of interest rate. The student loan is essentially an educational financial and policy tool based on knowledge trade.