CRI听力:China Has Funded more than 3.5 Billion Yuan for Its Residency-based Student Loan Program

Anchor:

China's residency-based student loan program has now expanded to 23 provinces. As an important part of the country's education loan scheme, the program has provided funds of more than 3.5 billion yuan, or some 500 million US dollars, to help students from poverty-stricken families continue into higher education.

Wang Ling has more.

Reporter:

Su Yanli, a college applicant from northwest China's Ningxia, received admission from Jilin University. However, the 6000 yuan tuition fee was too much for the young woman and her family to afford. Their yearly income amounted to no more than 10 thousand yuan.(www.hXen.com)

Thanks to the residency-based student loan program, Su was able to receive support before she left home for college.

Wang Shihai is with the office offering financial aid to local students.

"Before the program, students could only apply for loans through the university. They couldn't be sure about the money until they went to the school. So families with financial difficulties had to resort to selling their properties to pay the fees."

The residency-based loan program allows students to borrow money from banks in their hometown. Requiring no guarantee, the loans can be repaid over ten years after graduation. Interest and risk compensation are jointly covered by the central and local governments.

Ma Wenhua, deputy director of China National Center for Student Assistance Administration, explains:

"Pilots of the program were started in 2007 which covered only a few cities and counties. This year, the program has been carried out in 23 provinces and 22 of them have made sure each of the eligible applicants can benefit from the program."

Meanwhile, the number of applicants has grown to cover any student in the country's registered colleges and universities.

Meng Yaping is director of Project Appraisal Department with China Development Bank, the program's major creditor.

"The application is influenced by credit scores of both the students and their legitimate keepers. We will offer help to any student in need in a bid to support their right of education."

According to the China Development Bank, more than 350 thousand students have signed loan contracts, amounting to 3.5 billion yuan.

WL CRI news.