By sending out questionnaires to 106 counselors of 98 colleges and universities, panel discussion and interviewing, the authors implement a fairly comprehensive survey on the development of the financial aid system of assisting impoverished students in higher education institutes (HEIs) in China, including national student loans, award fund supported by government, on campus work-study and subsidy, etc. This paper aims at probing into some major problems that exist in this system and offer some suggestions and countermeasures on how to improve and develop the system.