The State Student Loan system in local colleges in Jiangxi Province is facing challenges due to various reasons like system shortcomings, bank thresholds, and student credibility issues. To improve the system, local governments need to provide more support, enhance the loan system, establish individual credit ratings for students, educate students on credibility, expand loan coverage, and improve implementation methods. These steps are crucial for the healthy and continuous development of the State Student Loan in municipal colleges.