Institutional Innovation of Government-subsidized Student Loan in China

As a measure of subsidizing poor university students, government-subsidized student loan (GSSL) has its theory foundation. Public goods theory, human capital theory and some other theories can explain the policy of GSSL. Now the policy of GSSL still has some problems in institution design. On the basis of these theories, draw lessons from foreign countries, the government can make innovations in institution design: GSSL should be divided into two kinds of loan; the interest rate of GSSL should be changed; GSSL should take the form of guarantee, the standard and amount of GSSL should be detailed and quantized, reimbursement term of GSSL can be extended appropriately, which is good to the development of GSSL.