Legal basis: Interim Measures for the Administration of State Grants in Ordinary Undergraduate Colleges and Higher Vocational Schools.
Article 3 State grants are used to finance students with financial difficulties among full-time undergraduates in ordinary colleges and universities (including higher vocational colleges and second bachelor's degrees). The number of state grants for central universities shall be determined by the Ministry of Finance in consultation with relevant departments. The number of national grants for local colleges and universities is determined by the provinces (autonomous regions and municipalities directly under the Central Government) according to the total number of people determined by the Ministry of Finance and the Ministry of Education, as well as the number, category, educational level, education quality, number of college students, student source structure and other factors. In the allocation of national scholarships, universities for nationalities and universities with special disciplines such as agriculture, forestry, water, minerals, oil and nuclear need to be properly tilted.
Article 4 State grants shall be shared by the central and local governments. The funds required for state grants in universities affiliated to the central departments shall be borne by the central finance. The funds needed for state grants in local colleges and universities shall be shared by the central and local governments in proportion according to local financial resources and students. The state encourages all provinces (autonomous regions and municipalities directly under the Central Government) to increase their financial assistance to students from poor families, and the central government will give appropriate subsidies to the funds needed for state grants exceeding the total amount approved by the central government.