Student Loan Loans Should Not Be Educational Opportunities For Disadvantaged Students

1552 Words Dec 29th, 2015 7 Pages
i. Student-loan defaults in China
In the context of entering the mass higher education stage, the ideology of cost-sharing and equity in higher education is now widely accepted as a must-do in China, and there is a tradeoff in which colleges can charge tuition fees in exchange for better financial aids to students from disadvantaged groups. Thus, implementing a student-loan scheme to ensure educational opportunities for needy students is the primary choice for the Chinese government. Nowadays the availability of student loans has been significantly improved while the issue of debt collection is still not addressed. In other words, high default rates will further negatively impact the sustainability of student loans.
On behalf of the public interest, the government subsidizing student-loan scheme aims to guarantee educational opportunities of students from low-income families as well as achieve social justice and solidarity. On the contrary, lending banks (commercial banks) as for-profit corporations, place more emphasis on profits rather than social responsibilities. As for college students, student loans represent using part of their future incomes to pay current tuition fees. While for colleges and universities, collecting tuition fees on time will directly affect their smooth operations.
Since the introduction of student-loan scheme in 1999, over 9.99 million needy students have received student loans, and loan volume nationwide totaled 103.2 billion RMB. According to…

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