The General Office of the State Council has transmitted the document, "Some Opinions Concerning Management of Financial-Aid-to-Student Loans", of the three departments-the People's Bank of China, the Ministry of Education and the Ministry of Fnance.

In an effort to support the development of the educational undertaking, beginning from the fourth quarter of last year and with support from the ministries of education and finance and other departments concerned, the Industrial and Commercial Bank of China has trial established, in Beijing, Shanghai, Tianjin, Chongqing, Wuhan, Shenyang, Xi'an and Nanjing, a national financial-aid-to-student loan with national financial discount, some other financial institutions have also successively set up ordinary commercial loans for financial aid to students. After half a year practice and in dealing with outstanding problems arising in the course of implementation, the People's Bank of China, the Ministry of Education and the Ministry of Finance have recently drawn up the document, "Some Opinions Concerning Management of Financial-Aid-to-Student Loans".

The document points out that the financial-aid-to-student loans comprise national financial-aid-to-student loan and ordinary commercial financial-aid-to-student loan. The former, which is set up by the Industrial and Commercial Bank of China and has national financial discount, is applicable to undergraduates and specialized students with financial difficulties studying in full-time institutions of higher learning. The latter refers to loans (without financial discount) issued by financial institutions to students receiving non-compulsory education, or to their lineal relatives or legal guardians. On the premise of effective control of credit risk, such loans can be set up by various commercial banks, urban credit cooperatives, rural credit cooperatives and other financial institutions. Financial-aid-to-student loans can only be used as students' studying and daily living costs during their period of schooling.

(This document, dated December 23, 1999, and published in full on page 5 of today's People's Daily, focuses on two points: Improving Management of National Financial-Aid-to-Student Loans; and Further Setting Up Ordinary Commercial Financial-Aid-to-Student Loans