Legal basis: Article 54 of the Higher Education Law of People's Republic of China (PRC). Students in institutions of higher learning should pay tuition fees in accordance with state regulations. Students from poor families can apply for subsidies or reduce tuition fees. Forty-fourth compulsory education funds shall be invested in a system in which the State Council and local people's governments at all levels shall share their responsibilities and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for overall implementation. The funds needed for compulsory education in rural areas shall be divided by the people's governments at all levels according to the provisions of the State Council and shared in proportion. People's governments at all levels provide free textbooks for school-age children and adolescents with financial difficulties and subsidize the living expenses of boarders. The specific measures for the guarantee of compulsory education funds shall be formulated by the State Council. Article 55 The State establishes scholarships, and encourages institutions of higher learning, enterprises and institutions, social organizations and other social organizations and individuals to set up various forms of scholarships in accordance with the relevant provisions of the State to reward students with excellent academic performance, students with majors specified by the State and students working in areas specified by the State. The state establishes funds and loan grants for students in institutions of higher learning, and encourages institutions of higher learning, enterprises, institutions, social organizations and other social organizations and individuals to set up various forms of grants to help students with financial difficulties. Students who receive loans and grants shall fulfill their corresponding obligations.