"Apply for First Semester Student Loans"… Loan Interest Rate Frozen at 1.7%

Korea Student Aid Foundation to Accept Student Loan Applications Starting from the 5th

[Asia Economy Reporter Han Jinju] The Ministry of Education and the Korea Student Aid Foundation will begin accepting applications for student loans for the first semester of the 2022 academic year starting from the 5th.

On the 4th, the Ministry of Education and the Korea Student Aid Foundation announced that applications for first semester student loans can be submitted until April 14, and living expense loans until May 19.

The interest rate for first semester student loans is 1.7%, the same as last year. Despite the increase in average loan interest rates at commercial banks and the rise in the base interest rate, this is to support the education of young people and reduce their repayment burden.

Starting from this first semester, the income threshold for repayment after employment for student loans will be raised from the current 22.8 million KRW to 23.94 million KRW. If income generated from employment or other sources falls below the repayment income threshold, repayment of principal and interest on the loan will be deferred.

The scope of support for income-contingent student loans after employment is expanded to include those enrolled in master's or doctoral programs at general graduate schools within the 4th income bracket or below, or those pursuing professional technical master's degrees at junior colleges. Undergraduate students can receive loans as long as they have completed at least 12 credits in the previous semester, regardless of the grade requirement (previously a C grade).

Students from basic livelihood security households, near-poverty households, and multi-child families who have received income-contingent student loans after employment will have their interest waived on loans incurred during enrollment starting from January 1 of this year. Low-income undergraduate students will have interest waived not only on living expense loans but also on interest accrued from tuition loans during enrollment.

Reflecting the difference in tuition costs for income-contingent student loans for graduate students, the general repayment loan limit for doctoral students has been raised to between 90 million and 120 million KRW.

Students who need student loans should apply at least 8 weeks before the registration deadline, considering the time required for calculating and notifying the student loan support bracket, to ensure stable loan approval. Detailed information related to student loans can be found on the Korea Student Aid Foundation website.