A joint effort has been initiated by the Ministry of Education, the Ministry of Finance, the People's Bank of China and the China Banking Regulatory Wholesale jewelry Committee to revive the nation's student loan programme.
By fixing credit terms the new move will re-energize the student loan programme, which was seriously strained in recent years by repayment defaults.
Almost five years after the programme was introduced to help poor youth realize their college dream, it was reported that a number of student borrowers failed to abide by their repayment agreement.
That fact made domestic banks shy wholesale clothing away from such a programme, even though it was of far-reaching importance to the country's higher education cause.
While the banks are justified to reduce their confidence in student borrowers, the bank credit terms were indeed too rigid for students.
The majority of today's college students have to apply for loans to cover tuition fees and living expenses which they cannot otherwise afford.
Though half of the interest on student loans is paid out of the national budget, the previous four-year repayment term still constituted a heavy burden on most student borrowers.
The country's tight job market has wholesale handbags darkened college graduates' employment prospects. It is estimated that some 2.8 million students, an increase of nearly one third, will graduate from colleges this year.
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