The Effect of Student Loans in China:

Focusing on College Choice of High School Students

Abstract

How to reduce the financial barriers of poor high school students and how to secure their opportunities for higher education have been critical problems in China. Student loans have become an essential component of financial aid, but the effect of student loans is not as good as expected. The purpose of this study is to analyze the effect of student loans focusing on college choice of high school students.

The results show that student loans influence students in choosing different types of colleges and some students decide not to apply to university to avoid a debt burden. This implies that the student loans scheme should be improved to increase the effectiveness of its impact on access equality.