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Scholarship and Loan System

In July 1986 the State Council announced that the stipend system for university and college students would be replaced with a new scholarship and loan system. The new system, to be tested in selected institutions during the 1986-87 academic year, was designed to help students who could not cover their own living expenses but who studied hard, obeyed state laws, and observed discipline codes. Students eligible for financial aid were to apply to the schools and the China Industrial and Commercial Bank for low-interest loans. Three categories of students eligible for aid were established: top students encouraged to attain all-around excellence; students specializing in education, agriculture, forestry, sports, and marine navigation; and students willing to work in poor, remote, and border regions or under harsh conditions, such as in mining and engineering. In addition, free tuition and board were to be offered at teachers' colleges, and the graduates were required to teach at least five years in primary and middle schools. After graduation, a student's loans were to be paid off by his or her employer in a lump sum, and the money was to be repaid to the employer by the student through five years of payroll deductions.
 
 
 Source :   Editor: WuLin
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