Second Semester Student Loan Interest Rate 1.7%... Applications Open from the 6th

Tuition Loan Applications Due by October 13, Living Expenses Loan by November 17
Refinancing Applications Also Accepted... Includes Student Loan Borrowers from 2010 to 2012

[Asia Economy Reporter Han Jinju] The interest rate for student loans in the second semester of this year has been frozen at 1.7%.

On the 4th, the Ministry of Education and the Korea Student Aid Foundation announced that applications for student loans for the 2022 academic year second semester will be accepted starting from the 6th. Tuition loans can be applied for until October 13, and living expense loans until November 17.

Students who need student loans are advised to apply at least 8 weeks before the university registration deadline, considering that it takes about 8 weeks from the loan application to the calculation and notification of the student loan support bracket.

Although the base interest rate is rising due to inflation concerns, the interest rate for second semester student loans will remain the same as the first semester at 1.7%. The Ministry of Education stated, "We maintain a low-interest policy for student loans to support the stabilization of low-income households struggling with recent high prices and high interest rates, and to alleviate the interest repayment burden on students and parents."

Loan applications can be made through the Korea Student Aid Foundation website or mobile app. Students can apply considering the eligibility requirements (age, completed credits, income criteria, etc.) and support benefits for each student loan system. If eligibility requirements are met, tuition loans can cover the full amount required for the semester, and living expense loans can provide up to 1.5 million KRW per semester.

The application and acceptance for the '3rd Low-Interest Conversion Loan,' which converts past high-interest student loans to low-interest loans, will also begin on July 6. Borrowers who took out general repayment student loans between 2010 and 2012, who were excluded from the previous two conversion loan rounds, are now eligible. At that time, the interest rates ranged from 3.9% to 5.7%, and the conversion rate is 2.9%.

The estimated number of eligible applicants is about 95,000. On the 28th of last month, the Cabinet meeting approved the related enforcement decree defining the conversion loan support target as those who received general repayment student loans from July 2009 to the end of 2012.