CDB announcement: to implement interest-free and principal extension of student loans as required by the four ministries and commissions

China Development Bank (CDB) recently announced that it has started interest-free and principal extension of student loans in accordance with the requirements of the Ministry of Finance, the Ministry of Education, the People’s Bank of China and the China Banking and Insurance Regulatory Commission.

The student loans administered by CDB include place-based student loans and college student loans. According to the notice of the four ministries and commissions, CDB will exempt the interest on the student loans that should be repaid in 2022 for borrowing students who graduated in 2022 or before. For borrowing students who graduated in 2022 or before, the loan principal that should be repaid in 2022 can be deferred for one year upon their own application, without penalty interest and compound interest.

According to CDB, the interest exemption requires no application and will be automatically granted while the deferred repayment of principal should be applied by students through the online student system of CDB. Related functions are under development and planned to be launched in the near future. Please stay focus on the student online system.

As the main administering bank of student loans, CDB had issued 267.1 billion yuan of loans to 36.99 million students by the end of December 2021. The acceptance of the student loans for 2022 is being prepared in an orderly manner.