FOSHAN, Guangdong: A local bank in this southern city may sue as many as 10
university graduates who have failed to repay their student loans, a staff
member of a local court here said yesterday.
Initial reports said a court hearing was to be held this week. However, it
was postponed due to "some uncertain conditions", according to a staff member
surnamed Chi with the People's Court of Chancheng District in Foshan, South
China's Guangdong Province.
"We have already dealt with three student loan suits in a separate case, "
Early last month, the Fengjiang branch of the Bank of China in Foshan sued
three students who graduated in 2005, but had not paid back loans from the bank.
"The previous three cases have been settled. After the hearings, the students
agreed to pay back their loans by the end of August," Chi said.
A university graduate surnamed Huang had signed a loan contract worth 12,000
yuan (about $1,600) with the bank in 2003 to cover his tuition at a local
However, he allegedly failed to repay 4,460 yuan within the term set by the
contract. After the hearing on May 31, he agreed to pay off his outstanding debt
before August 31.
"And now that another, larger lawsuit against students is coming up, the
issue of student loans is once again back into spotlight," Chi said.
Chi told China Daily that he was working on a report on the relationship
between university students and lenders in an attempt to provide "useful
information" to banks and educational authorities.
"The previous three cases did not suggest a clear reason why university
graduates fail to repay their loans, so we are studying the law in an attempt to
find solutions to such cases," Chi said.
Ma Yonghong, a local lawyer, yesterday called on university students to be
"seriously" responsible for their loans.
Student loans are often subsidized by the government to help poor students
finish their higher education.
(China Daily 06/12/2007 page5)