[Changes in the Second Half of 2022] From July, Student Loan Borrowers Eligible for '2.9% Low-Interest Refinancing Loan'

[Asia Economy Sejong=Reporter Son Seonhee] The government will implement low-interest rate refinancing loans starting next month for student loan borrowers to alleviate the economic burden on young people facing double hardships due to high interest rates and employment difficulties.

On the 30th, the government published a booklet titled 'Changes Starting from the Second Half of 2022,' which clearly summarizes various systems and laws that will change from the second half of this year.

The refinancing loan targets are those who received general repayment student loans between the second semester of 2009 and the second semester of 2012. The scope has been expanded to include '2012 borrowers' who were not supported during the first and second refinancing loan implementations. The refinancing interest rate will be set at 2.9% (compared to the current average burden interest rate of 4.9%), expected to reduce borrowers' interest burden by an average of 2 percentage points.

This third low-interest refinancing loan will be implemented from July 6, 2022, until the end of 2024.

Additionally, the government will conduct a pilot project from the second half of the year to strengthen support for adolescent parents. Adolescent parent households are defined as those where both parents (including common-law relationships) raising a child are '24 years old or younger.' Childcare support of 200,000 KRW per child per month will be provided for six months. However, this applies only to households with income at or below 60% of the median income.

Along with this, a 'Self-Reliance Support Package Pilot Project' will be promoted for adolescent single parents who are raising children while continuing their studies. The Ministry of Gender Equality and Family stated, "Once the pilot project begins, more systematic case management services can be provided to adolescent single parents, which is expected to help strengthen their self-reliance capabilities."

Furthermore, the menstrual product voucher program, which has been provided to low-income female adolescents aged 9 to 18, will be expanded to cover those aged 9 to 24.