Graduates take a selfie after the commencement ceremony of Peking University in Beijing, capital of China, July 2, 2020. (PHOTO / XINHUA)

BEIJING - China has issued a circular on government-subsidized student loans, which waives this year's interest and allows postponed repayment terms, the Ministry of Finance said on Friday.

College students graduating in and before 2024 are exempt from paying interest on loans this year, according to the circular jointly released by the ministry and three other government agencies.

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These students can also apply to defer this year's student loan repayments for 12 months, said the circular, adding that no penalties or compound interest will be charged.

The measures will help relieve the financial burden borne by graduates with financial difficulties and optimize employment services for the students, according to the ministry.