Legal analysis: Special funds for risk compensation are managed by national student loan management centers at all levels. According to the administrative subordination, the special funds for risk compensation are 50% by the finance and 50% by the universities, and managed by the National Student Loan Management Center. The special funds for risk compensation of colleges and universities affiliated to the central ministries and commissions are managed by the National Student Loan Management Center, and the special funds for risk compensation of local colleges and universities are managed by the National Student Loan Management Center of all provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans.

Legal basis: Measures for the Administration of Special Funds for Risk Compensation of National Student Loans Article 2 The special funds for risk compensation of national student loans shall compensate the handling banks according to the principle of "risk sharing" and a certain proportion of the actual amount of national student loans issued in that year. The specific proportion shall be implemented in accordance with the loan cooperation agreement signed by the National Student Loan Management Center and the handling bank.

The term "handling bank" as mentioned in these Measures refers to the winning bank that has signed a cooperation agreement with the National Student Loan Management Center.