Abstract
The aim of this report is to identify the cause of problems that burden the borrower of the JASSO Student loan 1.27 million students, 37 percent of the whole of university students borrowed 3.4 million Japanese yen averagely per person in 2019. It is certain that the JASSO Scholarship Loan Program contributes to the students as a whole scholarship system for university students as a constant effect to a great extent. Those students who can find a job and work regularly after graduation face no problem in general. However, if the parents of borrowers fall into economical difficulty or borrowers themselves lose opportunity to work, outstanding repayment of the Scholarship Loan has the possibility to become a heavy burden to the borrower. In fact, a news article of NHK reported 5,238 students who felt negative economical effects took time off university. There exist certainly some students among who have had negative economical effects are borrowing large amount of scholarship Loan program. The first cause of the problem is one the process of the formulation and revision of the law and regulations of the student scholarship loan. The second cause of the problem is one of feedback issues on how the incorporated administrative agency in Japan formulate the system of setting the medium-term target and how it draws real needs of the nation who are beneficiaries by feedback system of the previous medium-term evaluation. The third cause of the problem is one related to norms in the Japanese society. As a results of analysis of consideration on the JASSO scholarship loan case, it is necessary to examine possibilities of realization of : (1) expansion of the amount of the scholarship grant to a large extents (2) creative new measure s of the debt-relief only during the period that borrowers face economical difficulty to repay the installment of the scholarship loan in the case that the cause is not the responsibility of themselves, and (3) diversification of resources of funds of the scholarship loan by induction of a system of financial technology in the private sector.
