Up to 1 Million Won... Yeongcheon City, First in North Gyeongsang to Support Long-term Student Loan Defaulters

Encouraging Credit Recovery for Young Adults

Yeongcheon City in North Gyeongsang Province has become the first in the province to sign an agreement with the Korea Student Aid Foundation for a support project aimed at long-term student loan defaulters.

Choi Kimoon, Mayor of Yeongcheon (left), and Bae Byungil at the Korea Scholarship Foundation business agreement ceremony.

The support project for long-term student loan defaulters was selected as an outstanding entry in the '2023 Yeongcheon City Youth Policy Idea Contest'.

This project targets young people struggling with long-term student loan defaults, offering credit recovery support and early repayment assistance for those who have been faithfully repaying their loans.

The credit recovery support provides up to 1 million KRW in initial payment assistance to young people who have signed an installment repayment agreement with the Korea Student Aid Foundation. Additionally, those who have demonstrated faithful repayment for a certain period after signing the agreement are eligible for up to 1 million KRW in early repayment support.

Eligibility is limited to young people aged 19 to 39 who have been residents of Yeongcheon City for at least six months as of the application date, and whose credit information has been registered due to student loan delinquency with the Korea Student Aid Foundation (i.e., those previously classified as credit delinquents).

Mayor Choi Kimoon stated, "Through the support project for long-term student loan defaulters, we expect to provide local youth facing difficulties with loans or employment an opportunity to restore their credit, and to support those who repay faithfully, thereby helping young people resume normal economic activities and achieve stable independence."