BEIJING, March 7 (Xinhuanet) -- China plans to blacklist students who fail to
pay off their interest-free loans, in a bid to ensure sound operation and lower
risk for the state education loan system,the Ministry of Education said here
Tuesday.
Cui Bangyan, the Ministry's senior official in charge of the loan
management, said that information including the name, ID number and the alma
mater of students who fail to redeem loan payment for six years will be
publicized in various media and websites.
China introduced a pilot state education loan system
in 1999, which was extended to the rest of the country in 2004, in eight major
cities, including Beijing, Shanghai and Tianjin, to assist college students from
needy families.
"The time has come for early applicants to repay
their loans," Cui said.
According to a survey conducted by the Ministry,
nearly 20 percent of prospective borrowers fail to pay back loans in
variousways, indicating that the risks inherent in the the state loan system
have revealed themselves.
"The risks are intensified by the increasingly
difficult job hunting, the high mobility of modern labor, and low awareness of
the merit of credit among some students in China," Cui said.
According to documents issued by the central
government, for students who have a default in payment, loan interest will be
levied, the default will be recorded on the credit information system, and the
student will not be given loans or credit servicesin the future.
The People's Bank of China (PBoC), the nation's
central bank, announced earlier this year that a personal credit information
system that connects all local commercial banks and some rural credit
co-operatives was formally established in China.
China's state loan system issued 17.27 billion yuan
(about 2.08 billion U.S. dollars) in interest-free loans to 2.068 million
college students from poor families by the end of 2005.
2 mln college students get aid from state loan system
China's state loan system had assisted 2.068 million
college students from poor families by issuing 17.27 billion yuan (about 2.08
billion U.S. dollars) in interest-free loans by the end of 2005, China's
Ministry of Education said on Tuesday.
The Chinese government granted interest-free loans to
1.204 million college students by issuing around 1.025 billion yuan (123 million
U.S. dollars) between June 2004 and the end of 2005, said Cun Bangyan, the
ministry's senior official who is in charge of loan management.
China introduced a pilot state education loan system
in 1999 in eight major cities including Beijing, Shanghai and Tianjin. The
system was extended to the rest of the country in 2004.
By the end of 2005, 14.6 percent of the students
studying in colleges and universities sponsored by the central government
departments had received loans, with 8 percent in local universities and
colleges.
In China, families have to pay at least 8,000 yuan
(975.6 U.S. dollars) every year to support a college student, which means the
farmers have to spend years of their income to support a college student.
