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China refines financial aid for students

Enhancements will focus on rewarding academic excellence, assisting the poor

By LUO WANGSHU | China Daily | Updated: 2024-10-14 08:42
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China has rolled out enhancements to its student financial aid policies aimed at rewarding outstanding students and supporting those from economically disadvantaged backgrounds, according to officials from the Ministry of Finance and the National Development and Reform Commission.

During a news conference in Beijing on Saturday, Vice-Minister of Finance Guo Tingting outlined a dual approach to refining the policies: incentivizing excellence while providing necessary assistance to those in need.

To promote academic achievement, the number of recipients of the National Scholarship doubled at the beginning of the fall semester this year. The number of undergraduate recipients has increased from 60,000 to 120,000 per year. Additionally, the annual figure for master's recipients has risen from 35,000 to 70,000, and for doctoral winners from 10,000 to 20,000.

The National Scholarship amount for undergraduates has increased from 8,000 yuan ($1,132) to 10,000 yuan per year, while the National Inspirational Scholarship has grown from 5,000 to 6,000 yuan annually.

To further assist students from low-income families, the average national grant for undergraduates increased from 3,300 yuan to 3,700 yuan per year, effective this fall semester.

The government will also enhance its student loan program, raising the maximum loan amount for undergraduates from 16,000 yuan to 20,000 yuan per year and for graduate students from 20,000 yuan to 25,000 yuan. Additionally, interest rates on these loans will be reduced.

Guo noted that further updates regarding graduate scholarship standards are expected in 2025, alongside increased grants for high school and vocational students, thereby expanding the scope of financial support.

China currently has a comprehensive financial assistance system led by the government, with contributions from educational institutions and society. The system includes national scholarships, grants, student loan offerings, tuition reduction funds, living allowances and work-study opportunities.

Last year, the government allocated 93.2 billion yuan to support over 31 million students in higher education. Furthermore, financial subsidies enabled banks to issue 70 billion yuan in student loans.

The new initiatives are part of a broader economic strategy aimed at boosting domestic demand, said Zheng Shanjie, head of the National Development and Reform Commission, during a recent news conference. The policies are designed to increase the income of low- and middle-income groups and stimulate consumer spending.

Recently, China rolled out a series of incremental policies to stabilize the economy and achieve its annual socioeconomic development targets, with the student financial aid program being a component. Minister of Finance Lan Foan emphasized the government's commitment to implementing targeted policies to support key demographics, particularly college students, in order to enhance overall consumer capacity and stabilize economic growth.

China's comprehensive financial aid policies aim to ensure that all students have access to higher education, regardless of their economic backgrounds.

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