A NEW policy has been promulgated regarding student loans in Guangdong Province, according to media reports.

　　The new policy applies to all schools of higher education in Guangdong, including private schools. Without a quota limit, all interest will be paid by the government.

　　The policy stipulates that a student’s loan cannot exceed 6,000 yuan a year and that the loans need to be repaid within eight years after graduation.

　　So far 46 universities have signed agreements with banks, while 7,000 students from 29 universities have received loans totaling almost 94 million yuan.

　　A source from the Guangdong branch of the Industrial and Commercial Bank of China said credibility was an important factor affecting implementation of the loan scheme.

　　He said 38 percent of the loans became outstanding last year. A personal credibility system and relevant laws were necessary to improve the credibility environment of society.(Flame Wu)