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Freeing students from the burden of loans

China Daily | Updated: 2017-08-08 08:35

Editor's note: Campus loans have been fraught with problems across China. Some college students, who fell into a financial trap after borrowing money from loan sharks, have committed suicides, fled their homes, or settled their debts with sexual favors. To prevent students from falling into a debt trap, the China Banking Regulatory Commission and the ministries of education, and human resources and social security recently banned peer-to-peer online lending companies from doing business on campuses. Two financial law experts share their views with China Daily. Excerpts follow:

Strengthen students' financial education

Peer-to-peer online lending companies have been banned from offering loans to students on the campus, and commercial banks and consumer finance companies authorized by the CBRC will take over this business, says a recent notice issued by the ministries and the CBRC. The notice also says existing online lenders must withdraw from the market, and companies suspected of being involved in fraud, violence and spreading obscenities are subject to prosecution.

Freeing students from the burden of loans

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