The national student loan has been adjusted twice in less than two years, with significant increases in loan amounts and long-term loan interest rates exceeding %, in order to meet the financial needs of college students from economically disadvantaged families and alleviate their burdens.

Economically Disadvantaged College Students Receive New Favorable Policies. On a certain date, the Ministry of Finance and three other departments publicly announced the "Notice on Adjusting and Improving Relevant Policies for National Student Loans" (hereinafter referred to as the "Notice"), which aims to better meet the loan needs of students from economically disadvantaged families and reduce their financial burden by increasing the national student loan limit and lowering the loan interest rate.

The national student loan is a significant measure by the state to support impoverished students in higher education institutions through financial means. Students can apply for these loans to cover tuition and accommodation fees during their studies, as well as to supplement their daily living expenses. This policy has been adjusted multiple times in recent years, with the most recent adjustment occurring in the fall semester, where the loan amount was increased and the interest rate was reduced.

According to the Notice, starting from the autumn semester of the year, the annual loan application limit for full-time regular undergraduate and junior college students (including second bachelor's degree, vocational students, and preparatory students, etc.) has been increased from no more than 8,000 yuan to no more than 12,000 yuan per person. The annual loan application limit for full-time graduate students has been increased from no more than 12,000 yuan to no more than 16,000 yuan per person. Last autumn semester, the national loan limits for these undergraduate and graduate students were increased from 6,000 yuan and 8,000 yuan to the current 8,000 yuan and 12,000 yuan, respectively. This time, they have been further increased to 12,000 yuan and 16,000 yuan, showing a significant increase.

In addition to significantly increasing the national student loan amount in recent years, the loan interest rate has also been significantly reduced. In the fall semester of the year, the national student loan interest rate was adjusted from the Loan Prime Rate (LPR) for the same term and grade minus 30 basis points to minus 40 basis points. This time, the Notice further reduces it to minus 50 basis points. The Notice states that for previously signed floating-rate national student loan contracts that reference the LPR, the issuing banks may negotiate with the loan students to adjust the original contract interest rate to minus 50 basis points for the same term and grade.

According to data from the People's Bank of China, the Loan Prime Rate (LPR) on the date of the year and month is: 1-year LPR is 3.45%, and LPR for terms above 5 years is 4.2%. Currently, the interest for student loans during the period of study is fully borne by the government, and the loan repayment period has been extended to the remaining school duration plus 15 years, with a maximum of no more than 22 years. This means that under the new policy, the interest rate for national student loans with terms over 15 years will drop below 4%, specifically to 3.1%.

According to data from the Ministry of Education, the country issued a total of 44.16 billion yuan in national student loans in the year. By the end of last year, over 4.06 million students had benefited from the national student loan preferential policies.

For students from financially disadvantaged families, in addition to the increase in loan amounts and reduction in interest rates, the national grant standards have also been raised. For instance, the Ministry of Finance and other departments recently announced that starting from the autumn semester of the year, the average funding standard for national grants for undergraduate and junior college students will be increased from RMB per student per year to RMB, with specific standards determined by universities within the range of RMB per student per year, which can be divided into — levels. Additionally, the standards and number of awards for national scholarships and national motivational scholarships have also significantly increased.