Is Publication of Student Default on Student Loans Acceptable?
学生拖欠学生贷款是否该公开？
Different from usual loans given to businesses, the student loan is strategically designed to help impoverished college students finish their studies and hence promote the sustainable and harmonious development of educational quality undertaking. While we expect that college debtors would keep their promises to repay their loans, it is reported that many graduates have been put in the black list publicizing detailed information of students defaulting on student loans. Undoubtedly, those debtors would suffer from immediate humiliation and other potential credit risks.In the point of view of both banks and college debtors, the publication of students defaulting on student loans is justified and hence acceptable in the following aspects:
Firstly, articles concerning the publication of students defaulting on student loans have already been adopted in the 2004 version of Suggestions to Perfect Student Loans Program by the authorities. It is stipulated in the third part that students defaulting on student loans will be publicized in news media and China Higher-education Student Information Website. When those students apply for student loans, banks and cooperative universities inevitably have informed any detail relevant to the application, the repayments and consequences of failure to repay loans. Without mutual agreement between banks and debtors, banks would not take the risk of providing loans to college students. As a result, once students have signed their names in their agreement with banks to repay loans in time, banks are entitled to take any measure stipulated in their agreements in case of students’ failure to repay their loans. Is it reasonable to accuse banks of intruding those students’ privacy but not renouncing the students’ violation of loan agreements?
Secondly, the publicization would lead us to think over the possible consequence of bad credit records. The publicizing students’ default on student loans indicates that their violations might be recorded in the individual credit information database established the People’s Bank of China. Once their bad credits have been input to the database, it is likely that those students would have difficulties in applying for loans and credit cards in their remaining lives. For example, when those students decide to apply for mortgage loans to purchase real estate, their application would be declined by banks due to their bad records in the individual credit information database. Given those potential consequences of bad credit records, I think more and more people will not dare to try it out. In a sense, the publicization would contribute to building an honest society.
In sum, as college student debtors and banks have signed agreements concerning repayment of the loans, banks are entitled to publicize graduates’ default as is stipulated in the agreements. The publicization also helps build an honest society. Therefore, the publicization is not only justifiable but also acceptable.
