China to promote locally-granted student loans

Source: CRI | 08-26-2008 15:13

China will promote locally-granted student loans across the nation when the new school semester starts in September, Xinhua reports.

The new policy allows poverty-stricken students to apply for special loans at their hometown before they enter college. An individual student will be granted a maximum of 6,000 Yuan or nearly 900 US dollars for each year to cover their tuition and accommodation fees.

The repayment period of locally-granted loans has been extended to 14 years compared to the 10 years stipulated by national student loan policies.

The students and their legitimate guardians will be regarded as co-borrowers to assume liability together.

Locally-granted loans have been implemented on a trial basis in five provinces and municipalities since last August.

Pilot runs have shown that the new policies allow families in need to get sufficient aid from the government. Local banks have safeguards in place to guarantee loan repayment, said Ma Wenhua, vice director of the China National Center for Student Assistance Administration.

Ma urged local governments to ensure qualified applicants get loans before the new semester starts.

Editor:Wu Yan