Discussion about the Defects and Countermeasures of Chinese State-subsidized Student Loan System

As student borrowers default on their loans, the state-subsidized student loan system falls in the plight of the loans' application and lending this year. The essential reason for the situation is the serious defects in the design of Chinese state-subsidized student loan system. Therefore, to further improve the state-subsidized student loan system some new countermeasures must be taken, such as the burden which students in economic difficulties in returning loans will take should be alleviated, a credit rating system and a subsequent remedy mechanism for defaulted loans should be established .