The Ministry of Education, in conjunction with other competent authorities, recently issued a notification on measures to improve China’s national student loan scheme. According to the notification, three major changes will be introduced: 1. The grace period during which no principal is paid will be extended from 3 years to 5 years; 2. The length of the repayment term will be extended from 13-20 years after graduation to 15-22 years after graduation; 3. The interest rate of student loans issued after January 2020 will be 30 basis points lower than the loan prime rate (LPR) of comparable loan markets.