Abstract: During the past few years, mental health crisis of college students has occurred frequently which significantly increased the expectations and requirements of mental health education and counseling in colleges and universities. After the promulgation and implementation of the National Mental Health Law, higher requirements have been put forward for the mental health education of college students, especially for the intervention of college students' psychological crisis. It makes fundamental work in college mental health education and counselling more difficult and confusing in terms of the definition of mental health problems diagnosis and treatment, the appropriate place and context of mental health counseling, school management and the balance of students' rights and interests. The consulting qualification of consultants in colleges and universities is facing difficulties and challenges. This paper expounds the function and influence of "Mental Health Law" on college students' psychological crisis intervention, and defines the boundary between psychological consultation and psychotherapy. This paper proposes establishment of an effective psychological crisis intervention system, including clarification in the responsibility of mental health education in colleges and universities, implementation the combination of medicine and education, perfecting the rules and regulations of mental health education in colleges and universities, and improvement in the ability to deal with psychological crisis, which sheds lights on mental health education system for college students.