What is the loan term for student loans?

The student loan term is the length of time from signing the contract to paying off the loan normally.

The minimum loan period is 6 years, the maximum is (15 years remaining in school) years, and no more than 22 years. If the time from graduation to the maturity of the loan exceeds 5 years, then the 5 years after graduation will be the grace period. During the grace period, only interest will be repaid every year. Starting from the sixth year, the principal and interest will be repaid every year until September of the last year of the loan period. The loan must be paid off on the 20th; students going from associate to undergraduate (undergraduate to graduate) need to go to the financial aid center to apply for "change their education information and extend the interest discount period" before July 31 of the year they get the notice, and then they can continue to enjoy the interest discount during their new university period. (The premise is that the contract has not expired), but the loan expiration date remains unchanged, so the loan application period should be appropriately longer within the allowable range to avoid the loan expiration for graduate students before they graduate. Students who are going from junior college to bachelor's degree or from bachelor's degree to postgraduate degree if they do not go through the process of "changing their schooling information and extending the interest discount period" will bear the interest during the new university period themselves.

Loan period in the place of origin

With the development of the economy, the income of Chinese residents has increased a lot, but there are still many families who cannot afford the cost of college. Therefore, China Development Bank has designed student loans for students with financial difficulties. Some students are very concerned about the loan period of student loans in their place of origin. Today, I'm going to tell you a little bit about it.

According to the regulations of the China Development Bank, the loan period for student loans in the student’s place of origin is “10 years of study.” In other words, the loan period for college students is generally 13 years, and that for undergraduate students is generally 14 years. However, this provision is not mandatory. You can choose the loan term according to your actual situation.

Although you can choose the loan period of the student loan from the student's place of origin, the loan period cannot be less than 6 years or more than 20 years. That is to say, the loan period of the student loan in the student’s place of origin is: 6 years ≤ loan period ≤ 20 years.

There are two other special situations that require your attention.

1. After graduating from undergraduate degree, continue to study for graduate school;

2. Pursue a second bachelor's degree during the undergraduate period, resulting in a study period of more than 4 years.

In the above two special circumstances, after the students graduate, the repayment period will be shortened accordingly, but the loan period will remain unchanged.

Generally speaking, the loan period for student loans in the student’s place of origin is relatively long, so you don’t have to worry about the repayment pressure.

How is the period of student loans determined?

The loan period in student loans refers to the repayment period. For example, college loans are generally limited to 14 years. Here You can repay the loan within a period of time according to your own financial situation.

1. Student loan repayment period

1. In principle, the student loan period is determined based on the full-time undergraduate and junior college system plus 10 years, with a maximum of 14 years.

2. For students who study for more than 4 years or continue to study for a postgraduate degree or a second bachelor's degree, the loan repayment period after graduation will be shortened accordingly.

3. The grace period is the period during which the student is in school and two years after graduation. After the grace period, the student and his or her parents (or other legal guardians) will repay the loan principal and interest in annual installments in accordance with the loan contract.

2. Classification of student loans:

1. There are two main types of student loans, namely national student loans and student loans from places of origin.

2. The maximum term of student loans is 20 years, and the grace period for principal repayment is 5 years. During the grace period, only interest is required and no principal is required.

3. The national student loan interest rate shall be based on the benchmark interest rate of the same grade announced by the People's Bank of China at the same time. The interest on national student loans for loan students during their studies at school will be fully subsidized by the government, and the interest after graduation will be paid in full by the loan students themselves.

4. Borrowing students can repay part or all of the loan in advance during the loan period, but they must submit a written application to the bank in advance. Interest will be charged on the principal repaid in advance based on the interest rate agreed in the contract and the actual number of days of use.

3.

Extended information:

According to the length of the loan period, loans can be divided into short-term loans and medium- and long-term loans.

1) Short-term loans have a term of 1 year or within 1 year (more than 3 months, and less than 6 months are temporary loans). They are characterized by short term, low risk, and high interest rate. They are usually referred to as "lending" ” is mainly used to meet borrowers’ needs for short-term funds.

2) The term of medium-term loans is more than one year (excluding 1 year) and less than five years (including 5 years). It is characterized by long term, high interest rate, poor liquidity and high risk.

3) Long-term loans are loans of more than 5 years (excluding 5 years).

How is the period of student loans determined?

The maximum period shall not exceed 22 years.

The latest regulations on student loans in the student’s place of origin: the loan period is the academic year plus 15 years, with a maximum of 22 years. The grace period is 5 years. This policy will be implemented in 2020. For new contracts in 2020, the grace period for principal repayment is 5 years; for existing contracts before 2020, student loan contracts that have not started repaying the principal (that is, students have not graduated or have graduated but have not Loans that start repaying the principal), the borrowing student can apply to extend the grace period to 5 years within the loan period stipulated in the original contract through a change in repayment plan.

How many years do student loans need to be borrowed?

Student loans generally do not exceed 10 years.

The term of national student loans in colleges and universities generally does not exceed 10 years, and the maximum term of credit student loans in the student’s place of origin does not exceed 14 years.

Full-time general undergraduate and junior college students and graduate students from families with financial difficulties who are studying in colleges and universities in the province can apply for campus national student loans from the China Development Bank through the student financial aid department of the school where they attend. The annual loan amount for each student shall not exceed 8,000 yuan, and the annual loan amount for each graduate student shall not exceed 12,000 yuan. The loan term generally does not exceed 10 years.

Full-time general undergraduate and junior college students who are admitted to colleges and universities outside the province and whose families have financial difficulties can apply for a student credit student loan from the National Development Bank through the county-level student financial aid management center in their place of residence. The annual loan amount per student shall not exceed 8,000 yuan, and the maximum loan period shall not exceed 14 years.

This is the end of the introduction to the reasons for the loan period of student loans.