Gyeonggi Province is taking steps to support credit recovery for long-term student loan delinquents.
Starting from the 1st of this month, Gyeonggi Province announced that it will invest 153.5 million KRW this year to carry out the "Student Loan Long-term Delinquent Credit Recovery Support Project" to help residents who have become registered as credit rating judgment information holders (formerly known as credit delinquents) due to long-term student loan delinquency.
The support targets residents who have lived in Gyeonggi Province for more than one year according to their resident registration and whose credit rating judgment information has been registered with the Korea Credit Information Services due to long-term delinquency.
The selection results are notified monthly, and support is provided up to 5% of the total debt amount including principal and interest, with a maximum of 1 million KRW per person.
Applications for support can be made through Gyeonggi Minwon 24 (gg24.gg.go.kr), and with consent to administrative information joint use, the resident registration transcript is automatically linked, allowing for a simple application without submitting separate documents.
If selected as a support recipient and a split repayment agreement is made with the Korea Student Aid Foundation, all delinquency interest will be waived, and the registered credit rating judgment information will be removed, thereby resolving difficulties in loans and employment caused by credit deterioration and allowing for the postponement of legal actions due to arrears.
Park Sang-eung, Director of the Education Cooperation Division of Gyeonggi Province, stated, "When disadvantages occur in financial transactions or employment due to student loan delinquency, economic difficulties tend to worsen," adding, "We will strive to help individuals escape debt and alleviate difficulties in studies and employment through credit recovery support."
Meanwhile, Gyeonggi Province has been operating the student loan long-term delinquent credit recovery support project since October 2021.
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