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      China's student loan payback period extended to 20 years

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      2015-07-16 09:10Xinhua Editor: Gu Liping

      China has decided to extended the maximum repayment period for student loans to 20 years, according to a circular by the ministries of education and finance and the People's Bank of China on Wednesday.

      The longest repayment period of college student loan was previously 14 years. Now all the interest expenses during undergraduate and graduate study will be covered by financial subsidies, said the circular.

      The circular also required education departments and universities to establish a payment aid mechanism for the neediest students who cannot afford to repay the loans in time due to disability, or being impoverished with a seriously ill family member at home.

      The circular also required student-loan service organs and banks to streamline approval procedures to assist students in financial difficulties.

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