Some RMB 360 million yuan loans allocated for students are to be available for Guangdong's 98 higher education establishments; students in need could apply for it starting from next month, source with Nanfang Daily on Thursday (Nov. 25th).

This measure is considered a breakthrough in the procedure of the provincial educational loans issue.

The national education loans have once been suspended early this year due to a large amount of college students' failure to pay back their borrowed-sum in time.

State document released recently from the State Council with the statement that it is determined to implement the new measure for the student loan issue. The government is now to give a greater deal of interest exemption on student loans, permitting students to get loans paid in an allowed prolonging time. Loaned students may pay off it in six years instead of the former fixed four years.

Industrial and Commercial Bank of China Guangdong Branch (ICBC) wins the bidding to be the designated financial institute to operate the loan business.

Yet six commercial banks like the ICBC, China Ever-bright Bank, Minsheng Bank, Agricultural Bank of China, Construction Bank of China and Bank of China participate the bidding with enthusiasm and higher expectations, says Li Xiaolu, Vice Director of Guangdong Provincial Department of Education.

The total sum RMB 360 million yuan, is designed and budged on the basis of students' general expenditures occurred in Guangdong, it is to meet the demand for the province's whole college students go on their college life, says Li.

Banks work actively with colleges to the new loan measure. "We believe the loan repaying rate could increase evidently thanks to the establishment of national credit system ", expresses Hu Ye, president assistant to ICBC, Guangdong Branch .

Editor: Catherine

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