China: 160 Million Students Received Financial Aid in 2025

China’s Ministry of Education (MOE) announced on July 28 that nearly 160 million students received financial assistance nationwide in 2025, with total funding exceeding 390 billion yuan (approximately $54.6 billion), marking a year-over-year increase of more than 14%. The announcement, made at a press conference in Beijing, highlighted the government’s expanding commitment to education accessibility from preschool through graduate studies.

Expanding Reach and Record Funding

According to The Paper, the 2025 figures represent a more than 5% increase in student beneficiaries compared to 2024. Government fiscal input accounted for approximately 240 billion yuan — roughly 61.5% of total funding — making public spending the dominant source of student aid. The data release comes during peak university admissions season, strategically informing prospective students and families about available support.

The “One Exemption, Two Expansions, Three Increases” Policy

A centerpiece of the 2025 reforms is a new policy package known as “一免、两扩、三提高” (One Exemption, Two Expansions, Three Increases), which took effect last year:

• One Exemption: Starting Fall 2025, preschool children in their final year before primary school are exempt from childcare and education fees at public kindergartens. Children attending approved private kindergartens receive equivalent reductions.
• Two Expansions: The compulsory education nutrition improvement plan was expanded to county-level areas formerly classified as contiguous destitute regions, and third-year secondary vocational students became eligible for national grants.
• Three Increases: The average high school national grant rose from 2,000 to 2,300 yuan per student per year; central university master’s academic scholarships increased from 8,000 to 10,000 yuan per year; and doctoral scholarships rose from 10,000 to 12,000 yuan per year.

Student Loans Surge 34%

National student loans saw remarkable growth in 2025. Xinhua News Agency reported that loan disbursements reached 127.7 billion yuan — a 34% increase year-over-year — with 8.52 million students taking out loans, representing approximately one in five college students. Since the program’s inception, cumulative loans have reached 695.8 billion yuan, benefiting over 30 million students.

“National student loans adhere to the principle of ‘should lend, lend fully,’” said Chen Shumei, Director of the National Student Financial Aid Management Center, at the press conference. She noted that eligible students with family economic difficulties can apply according to regulations, and the 8.52 million recipients in 2025 represent “supporting countless students in pursuing their studies without worry.”

A System with Chinese Characteristics

Liu Yuguang, Director of the MOE Finance Department, described the current student aid framework as “a system with Chinese characteristics that combines multiple policies — with government funding as the main source and school and social funding as supplementary; non-repayable aid as the main form and repayable aid as supplementary; and poverty alleviation as the main focus with merit-based awards as supplementary.” This structure, he said, institutionally ensures that “no student drops out due to family economic difficulties.”

Breakdown by Education Level

The 160 million beneficiaries span every stage of education. In preschool, over 14 million children benefited from the new fee exemption. In compulsory education, 18.77 million students received living subsidies while 27.58 million participated in the nutrition improvement plan. Secondary vocational education saw 12.79 million students receiving free tuition and 4.07 million receiving national grants. At the higher education level, 12.71 million students received national grants, 8.52 million accessed student loans, and 2.64 million received graduate academic scholarships.

Digital Transformation in Aid Management

A notable development in 2025 was the rollout of digital management improvements. A “one-network sharing” system now enables schools to access data on students from low-income, impoverished, and disabled backgrounds through cross-ministry data sharing with agencies including Civil Affairs, Agriculture and Rural Affairs, and the China Disabled Persons’ Federation. Additionally, a “one-network query” system on the National Smart Education Public Service Platform allows students to check aid policies, verify national scholarship certificates, and access historical aid records.

Implications and Outlook

The 14% increase in total funding and 34% surge in student loan disbursements — rates significantly exceeding GDP growth — signal sustained policy commitment to education equity. The expansion into preschool education aligns with China’s broader demographic strategies, while the inclusion of third-year vocational students addresses a prior coverage gap. As the system continues to mature through digital innovation and policy expansion, it positions education accessibility as a cornerstone of China’s social and economic development strategy.