Seoul City Announces Recruitment for Interest Support on Student Loans for University and Graduate Students

For Seoul Citizens Who Received Loans from the Korea Student Aid Foundation

[Asia Economy Reporter Kiho Sung] The Seoul Metropolitan Government announced on the 16th that it will support student loan interest incurred in the second half of 2022 (July to December). Eligible applicants are university (graduate) students currently enrolled (including those on leave of absence for up to 6 semesters) or residents of Seoul within 5 years after graduation who have received student loans from the Korea Student Aid Foundation. The supported student loans include general and income-contingent repayment loans (tuition and living expenses).

The Seoul Metropolitan Government’s student loan interest support program for university (graduate) students was initiated in 2012 through a memorandum of understanding (MOU) with the Korea Student Aid Foundation. The program aims to alleviate debt issues faced by young people before entering society due to high-cost university tuition loans by supporting student loan interest payments.

Regarding the Korea Student Aid Foundation’s university (graduate) student loans, interest incurred twice a year in the first half (January to June) and second half (July to December) is supported retrospectively by repaying the principal and interest. This application supports student loan interest incurred in the second half of 2022, from July to December.

Anyone who is a resident of Seoul according to their resident registration and is either a university (graduate) student nationwide (including those on leave of absence, supported up to 6 semesters) or within 5 years after graduation (graduates after January 18, 2018) can apply through the Youth Mongttang Information Portal.

The application period is from 09:00 on the 18th until 18:00 on March 6, and inquiries during the application period can be made to the 120 Dasan Call Center.

The support scope includes multi-child households and those whose income was at or below the 8th income decile at the time of the loan. Whether support is granted and the amount will be finalized by mid-June and provided in the form of repayment to the loan account. After support is completed (mid-June 2023), applicants can check the support details for each loan account on the Korea Student Aid Foundation website.

For multi-child households and those with income at or below the 7th income decile at the time of the loan, full support is provided according to enforcement regulations. For general borrowers and income-contingent repayment loan borrowers with income at or below the 8th income decile at the time of the loan, the support scope is determined within the budget by the Seoul Metropolitan Government Student Loan Interest Support Deliberation Committee.