Students must learn to avoid loan risks

COLLEGE STUDENTS can now apply to authorized commercial banks for small loans but will be denied access to online lenders, according to an official of the Ministry of Education. Beijing Youth Daily commented on Thursday:

In the wake of increasing online loan schemes, particularly those targeting college students, several State-owned commercial banks have restarted offering small loans to university students, a service that was discontinued in 2009 due to procedural flaws. Bank of China, for example, has started a campus loan program that can extend from three to six years and capped the amount at 8,000 yuan ($1,250).

The banks are right to revive the plan, as their absence from the campus loan program allowed many online loan sharks to not just flourish but also prey on students who needed money but failed to see the underlying dangers of borrowing "quick" money. But the commercial banks have a lot to catch up and reflect upon when it comes to students' requirements and the situation on the ground.