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China waives student loan interest to further support recent graduates

By Zhao Yimeng | chinadaily.com.cn | Updated: 2024-02-02 20:51
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China will waive interest on national student loans and allow the extension of repayment as measures to alleviate the financial burden on college graduates with economic difficulties and support their employment this year, according to a circular approved by the State Council, or China's Cabinet.

The interest on national student loans for students who graduated in or before 2024 will be exempted and the waived interest will be covered by the central and local finances, said the circular jointly released by the Ministry of Finance, the Ministry of Education, the People's Bank of China and the National Financial Regulation Administration on Friday.

The repayment of national student loans for the same group of students can be extended for one year upon voluntary applications completed by the student, while the maximum period for the repayment should not exceed 22 years, the circular said. The extended loans will not charge penalty interest or compound interest, it added.

The banks managing national student loans should submit credit information according to the adjusted loan arrangement, it said.

In 2024, the number of college graduates in China is expected to reach a record 11.79 million, posing new challenges to the competitive job market, according to the Ministry of Education.

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