[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 21st that it has signed a business agreement with the Korea Student Aid Foundation and will support the credit recovery of young people whose credit information has been registered due to long-term delinquency on student loans starting from this day.
First, Gwangju City will support 5% of the installment repayment agreement amount as an initial payment. The Foundation will reduce delinquency interest through installment repayment agreements with debtors, withhold legal actions, and remove the registration of credit information.
Applicants must be residents of Gwangju City as of the announcement date, under the age of 39, and have had their credit information registered due to delinquency on student loans for more than six months. Applications are accepted starting today.
Details such as application documents can be found on the Gwangju City website under the announcement for support applications for credit recovery of long-term delinquent student loan borrowers. Inquiries can be made to the City’s Youth and Adolescent Division.
Additionally, Gwangju City will provide customized debt counseling linked with the Gwangju Youth Dream Bank for applicants and guide various youth support programs to assist with employment and economic activities.
Son Ok-su, head of the City’s Youth and Adolescent Division, said, “We hope this project will serve as an opportunity for local youth who are struggling with financial transactions and employment activities due to various debts, including student loans and living expenses, to recover their credit and achieve economic independence.”
Meanwhile, according to the Korea Student Aid Foundation, as of last month, there are 480 young people under the age of 39 residing in Gwangju City whose credit information has been registered.
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