Risks in Online College Student Lending in China and Coordinated Regulation

Since its introduction to China in 2007, online lending has witnessed a boom, aided by the impetus of internet development. Due to the peculiarities of the borrowers, online college student loans facilitated by peer-to-peer lending platforms have sparked widespread public concern. Many issues plague online lending operations for college students, including unclear duties of the platform, immature approval and exit regulations, interest rates, and fee structures; knowledge asymmetry in the transaction; and false publicity of the platform for profiteering purposes. As a result, internet lending risks are increasing, including credit risk, usury risk, and information leakage risk. The objective of this research was to provide implications for risk avoidance and action by exploring the causes of these risks and describing the current governance of online student lending