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Stress builds to repay tuition loans
(eastday.com)
Updated: 2004-12-01 09:30

Donghua University in Shanghai will send student tuition loan records to their future employers after graduation - a new measure taken to urge loan applicants to pay back money on time.

Starting this semester, Donghua students who apply for a government-subsidized bank loan should first sign a statement, as well as take an oath to promise repayment.

Loan beneficiaries are also required to complete 50 to 200 hours of volunteer work during their university life in return for the help.

A student's loan application and returning report will also be sent to future employers together with other personal documents so that the company can urge young employees to pay back the money on time.

Student loan records previously have been private with only the bank, the university authority and student having access to the information, Donghua officials said.

"We should convince students that financial problems are temporary. It's more important to cherish their credit," said Wang Kebin, director at Donghua's student affairs division.

Starting this semester, each local university student can apply for up to 6,000 yuan (US$723) in government-subsidized tuition loans each year.

The annual tuition for local university students ranges from 5,000 to 10,000 yuan.

Through June, about 12.4 percent of the city's tuition loans were reported to be nonperforming, according to the Shanghai Education Commission.



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