CBA organized a seminar on student loans on October 27, 2006 to tackle difficulties and problems in student loans. Representatives from 11 member banks in Beijing attended the seminar which was hosted by Cao Lina, Deputy Secretary-General of CBA, and Wu Tongquan, Deputy Secretary-General of CBA made a speech at the seminar.

The member banks introduced history and situation of student loans in their banks and expressed their opinions and suggestions on key and difficult issues of student loans. Attendees all agree that the student loans offered by banks are an overall success, and have helped a great number of college students with their tuition fees. However, many issues exposed during the operation are still worth our attention. For example, the vague business position, relative high default rate and potential default rate, high management costs, difficulties in collection, low ratio of risk compensation fund, and risking NPLs rates.

Representatives wish the Association could appeal to relating institutions to clarify nature of the business and design a development mode for it. Banks shall strengthen their communication with students, colleges, education administrative organs to share the responsibility according to their benefits. Meanwhile, education of faith to college students and construction of a social faith system shall be sped up so as to form a favorable environment for development of student loans.