Abstract: The paper focuses on national student loan defaults, and analyzes the defect of national student loan policy from the view of four major interest subjects: the student, bank, university and government. Furthermore, the paper considers that the institutional default is the main reason of the high national student loan defaults. In order to overcome the problem, the paper advances many reasonable proposals, such as perfecting the system of national student loan policy, establishing the mechanism of risk-reserve and accelerating the construction of the individual-credit system.