Young People with Bad Credit Due to Unpaid Student Loans... 100 Supported for Credit Recovery Each Year

Gyeongbuk Province and Korea Student Aid Foundation Sign Business Agreement

Gyeongbuk Province signed a business agreement with the Korea Student Aid Foundation on the 1st at the Gyeongbuk Provincial Government Office to promote the "Student Loan Credit Recovery Support Project."

This agreement was established to provide opportunities for credit recovery to young people in the Gyeongbuk region who are experiencing difficulties in employment and entrepreneurship due to long-term student loan delinquency, thereby creating a stable academic environment and supporting the economic independence of youth.

The project targets young people under the age of 39 who have been registered residents of Gyeongbuk Province for at least one year and are listed in the credit evaluation information (formerly known as credit delinquents) due to long-term student loan delinquency. Currently, it is estimated that around 350 local youths are facing financial disadvantages due to overdue student loan repayments, and with this agreement, about 100 individuals are expected to benefit each year.

Lee Cheolwoo, Governor of Gyeongbuk Province (right), and Bae Byungil, Chairman of the Korea Student Aid Foundation, are posing for a commemorative photo after signing a business agreement on "Support for Credit Recovery of Student Loans."

Selected participants will receive partial debt support from Gyeongbuk Province, and upon signing an installment repayment agreement with the Korea Student Aid Foundation, their registration in the credit evaluation information will be lifted, providing an opportunity to resolve financial disadvantages.

In addition, Gyeongbuk Province has been easing the burden of student loans by supporting student loan interest for university students in the province who meet certain residency and other requirements, benefiting approximately 7,900 students with about 690 million won in interest support since the program began in 2017.

Lee Cheolwoo, Governor of Gyeongbuk Province, said, "Local youth are facing difficult situations such as a lack of quality jobs and employment instability. We will continue to implement customized policies so that they can reduce financial burdens in their studies, enter society stably, and remain in the region."