Differences in student loan policies between China and Japan: a case study of China's national student loans and Japan's JASSO student loans
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Differences in student loan policies between China and Japan: a case study of China's national student loans and Japan's JASSO student loans

Mengdi Qian 1*
1 Department of Foreign Languages, Yunnan University, Kunming, Yunnan, 650500, China
*Corresponding author: qianmengdi@stu.edu.cn
Published on 23 July 2025
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JEEPS Vol.3 Issue 3
ISSN (Print): 3049-7256
ISSN (Online): 3049-7248
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Abstract

This paper conducts a comparative study of China's national student loan policy and Japan's student loan policy administered by the Japan Student Services Organization (JASSO). The research reveals distinct characteristics in both systems: China's policy features strong government leadership coupled with commercial bank participation, achieving broad coverage of economically disadvantaged students but encountering challenges such as insufficient loan amounts and significant default risks. In contrast, Japan's JASSO system employs diversified funding sources and a refined tiered assistance approach, complemented by an income-contingent repayment mechanism that ensures high recovery rates. However, it struggles with substantial debt burdens stemming from Japan's higher education costs and uneven distribution of educational resources. Through analyzing these policy differences, the study investigates the underlying socioeconomic factors and institutional designs that shape each system, particularly focusing on how societal needs, economic conditions, and fiscal policies interact to influence student loan mechanisms. Based on this comparative analysis, the paper proposes targeted recommendations for enhancing the effectiveness and sustainability of student loan systems in both countries, with special attention to balancing accessibility, affordability, and repayment feasibility in different national contexts.

Keywords:

student loan policy, China-Japan comparison, repayment mechanism, education finance

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Qian,M. (2025). Differences in student loan policies between China and Japan: a case study of China's national student loans and Japan's JASSO student loans. Journal of Education and Educational Policy Studies,3(3),41-46.

References

[1]. Cai, X., Cheng, J. (2021). Research on the Development History, Current Situation, Problems, and Countermeasures of Higher Education Financial Aid Policies in China.Society & Public Welfare, 12(03), 39-43.

[2]. Ma, J. (2008). Comparison of the Chinese and Japanese State-subsidized Student Loan System. Master's Thesis, East China Normal University.

[3]. Xu, B., Zhang, X. (2019). A Comparative Study on Student Loan Systems for Higher Education between China and Japan.Journal of Lianyungang Technical College, 32(04), 80-82.

[4]. Hu, M., Tan, J., Ma, D. (2024). The Institutional Logic and Path of Japanese Higher Education Student Aid Policy--Analysis Based on Japan's "New Economic Policy Package".Tsinghua Journal of Education, 45(05), 126-136.

[5]. Wang, D. (2020). Paradigm Shift and Practice of Higher Education Funding.Journal of Hubei University of Education, 37(06), 71-75.

[6]. Ministry of Education, Science and Technology. (2021). Enhancement of the scholarship program. Retrieved from: https: //www.mext.go.jp/a_menu/koutou/shougakukin/main.htm

[7]. Ministry of Health, Labour and Welfare of Japan. (2024). Summary of the 5th year of the Reiwa survey on employment trends. Retrieved from: https: //www.mhlw.go.jp/toukei/itiran/roudou/koyou/doukou/24-2/index.html

[8]. Yang, X. et al. (2024). 2024 White Paper on Consumer Insights of Chinese College Students.

[9]. Song, M., Dou, X. (2017). The Regional Difference of Japanese Higher Education Scale and its Determinants.China Economics of Education Review, 2(03), 55-70.

[10]. Zhong, S., Xu, B. (2019). The Higher Education Free Grant Policy in Japan and Its Impacts.Contemporary Economy of Japan, 38(04), 83-93.

References

[1]. Cai, X., Cheng, J. (2021). Research on the Development History, Current Situation, Problems, and Countermeasures of Higher Education Financial Aid Policies in China.Society & Public Welfare, 12(03), 39-43.

[2]. Ma, J. (2008). Comparison of the Chinese and Japanese State-subsidized Student Loan System. Master's Thesis, East China Normal University.

[3]. Xu, B., Zhang, X. (2019). A Comparative Study on Student Loan Systems for Higher Education between China and Japan.Journal of Lianyungang Technical College, 32(04), 80-82.

[4]. Hu, M., Tan, J., Ma, D. (2024). The Institutional Logic and Path of Japanese Higher Education Student Aid Policy--Analysis Based on Japan's "New Economic Policy Package".Tsinghua Journal of Education, 45(05), 126-136.

[5]. Wang, D. (2020). Paradigm Shift and Practice of Higher Education Funding.Journal of Hubei University of Education, 37(06), 71-75.

[6]. Ministry of Education, Science and Technology. (2021). Enhancement of the scholarship program. Retrieved from: https: //www.mext.go.jp/a_menu/koutou/shougakukin/main.htm

[7]. Ministry of Health, Labour and Welfare of Japan. (2024). Summary of the 5th year of the Reiwa survey on employment trends. Retrieved from: https: //www.mhlw.go.jp/toukei/itiran/roudou/koyou/doukou/24-2/index.html

[8]. Yang, X. et al. (2024). 2024 White Paper on Consumer Insights of Chinese College Students.

[9]. Song, M., Dou, X. (2017). The Regional Difference of Japanese Higher Education Scale and its Determinants.China Economics of Education Review, 2(03), 55-70.

[10]. Zhong, S., Xu, B. (2019). The Higher Education Free Grant Policy in Japan and Its Impacts.Contemporary Economy of Japan, 38(04), 83-93.

Cite this article

Qian,M. (2025). Differences in student loan policies between China and Japan: a case study of China's national student loans and Japan's JASSO student loans. Journal of Education and Educational Policy Studies,3(3),41-46.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Journal: Journal of Education and Educational Policy Studies

Volume number: Vol.3
Issue number: Issue 3
ISSN: 3049-7248(Print) / 3049-7256(Online)

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