The national student loan repayment subsidy is used to help particularly difficult graduate loan students. Graduates who meet the following conditions can get the national student loan repayment subsidy, and start the rescue mechanism to compensate the principal and interest (the regulations vary from place to place):

First, the borrower dies;

Second, all the borrowing students have lost their ability to work or are severely disabled;

Third, the borrower is missing;

Fourth, after the occurrence of major natural disasters, it is indeed difficult to restore and rebuild the families of borrowing students;

Fifth, borrowing students and family members (spouses, children, parents, unmarried brothers and sisters) suffer from major diseases;

Sixth, the economic income is particularly low, and it is only possible or difficult to maintain the minimum living standard.

The national student loan is an important measure taken by the CPC Central Committee and the State Council to improve the financial aid policy system of ordinary colleges and universities in China and increase the financial aid for poor students in ordinary colleges and universities under the conditions of socialist market economy. The national student loan is a bank loan which is led by the government, subsidized by the finance, and compensated by the finance and universities at certain risks, and jointly operated by banks, education administrative departments and universities. Borrowing students do not need to apply for loan guarantee or mortgage, but they need to promise to repay on time and bear relevant legal responsibilities. Borrowing students apply for loans from the bank through the school to make up for the lack of expenses during their school days and repay them in installments after graduation.