The China Development Bank (CDB) will make 14 billion yuan of new loans to college students this year, it announced on Wednesday, as the new semester began.

The new loans will be granted under the state education loan scheme through 2.5 million contracts with students and an accumulative number of over 12 million students will benefit.

CDB also adjusted credit lines to each college student, raising the line by 33 percent to 8,000 yuan for each undergraduate applicant while doubling the line to 12,000 yuan for each graduate student, each year.

The interest-free student education loans require no guarantees and can be repaid over ten years after graduation. Interest and risk compensation will be shouldered both by the central and local governments.

Under the state education loan system, students are required to apply for education loans through their universities.

CDB will also give more support to students from areas hit by earthquakes in southwest Yunnan Province and those from the typhoon-battered areas in southern Guangdong and Hainan provinces.