Daejeon City Supports Credit Recovery for Young Adults with Student Loan Delinquencies

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City is supporting the credit recovery of young people facing difficulties due to student loan delinquencies.

On the 1st, the city and the Korea Student Aid Foundation announced that they will support credit recovery for young people who have registered credit caution information due to long-term student loan delinquencies, including debt adjustment and removal of credit caution information.

This project focuses on providing young people with registered credit caution information due to long-term student loan delinquencies with an initial payment of 5% of the installment repayment agreement amount supported by the city, while the Korea Student Aid Foundation handles debt adjustment and removal of credit caution information through installment repayment agreements.

To receive the benefits of the project, applicants must apply for participation through the city’s website between the 2nd and 20th of this month, and those selected as beneficiaries must enter into an installment repayment agreement with the Korea Student Aid Foundation.

Applications are open to long-term student loan delinquents (with registered credit caution information) aged 39 or younger residing in Daejeon as of the announcement date, who have the willingness to repay in installments.

The city plans to prioritize final beneficiaries based on remaining debt amount, delinquency period, age, and other factors, and notify the results individually via text message.

According to data from the Korea Student Aid Foundation, as of the end of September, there are 458 registered credit caution individuals aged 39 or younger residing in Daejeon.

Kim Ga-hwan, head of the Youth Policy Division, said, “We will support young people who are struggling with financial transactions and employment activities due to long-term student loan delinquencies to quickly escape from credit caution status, recover their economic capacity, and establish a foundation for independence.”