A Comparative Analysis of the Student Loan Systems in China with the United States Federal Student Loan Programs in the Context of Higher Education Universalisation

[Purpose] This study aimed to comprehensively examine the current situation of Chinese student loan system in the context of the universalisation of higher education in China, and to make feasible recommendations for improvement based on a comparative analysis with the United States federal student loan system. [Methods] Using a comparative research method, this study provided a detailed analysis that outlines the critical differences between the student loan systems in China and the U.S. Pivotal points include access to information channels, required documentation, loan types, support scope, and repayment strategies. Data were collected from official national websites, policies, and a range of secondary data sources. [Results] The study showed that central governments in both China and the U.S. have played an important role in guiding the student loan system to promote educational equity. However, significant gaps and limitations have been identified in Chinese student loans. These include the fragmentation of information channels and the complexity of the application process; the uniformity of loan types; the narrow scope of support; and the unity of repayment options. In contrast, the U.S. has a more mature and detailed system with features such as specialised student loan administration and servicing agencies, the convenience of online services, the diversity of loan types, the breadth of support and the flexibility of repayment plans. [Conclusion] This study suggested that China should improve the efficiency of its student loan system by borrowing from the U.S. federal student loan system. Specific strategies include building an efficient student loan platform that integrates online and offline services; expanding the types and amounts of loans and implementing a total loan limit model; and promoting the implementation of Income-Driven Repayment Plans to meet the needs of more students.