Apply for University Tuition Loans... Korea Scholarship Foundation Offers Up to 2 Million Won for Living Expenses Loans

Student Loan Interest Rate Frozen at 1.7% for Five Consecutive Years

The Korea Student Aid Foundation (Chairman Bae Byeong-il) is guiding students to apply for student loans so they can cover tuition and living expenses with low financial burden during the concentrated tuition payment period for major universities (undergraduate) in the first semester of the 2025 academic year.

Student loans can be applied for immediately not only by current students but also by new and transfer students. Tuition loans can be applied for until April 24, and living expense loans until May 20.

Korea Student Aid Foundation

Loan applications can be made on the Korea Student Aid Foundation website or mobile app after preparing the student’s electronic signature method.

The interest rate for student loans in the first semester of the 2025 academic year is supported at a much lower annual rate of 1.7% compared to market rates. This low interest rate was decided as government financial support prioritizing youth assistance despite the difficult economic environment, and the same low interest rate is provided regardless of product type (general repayment or income-contingent repayment) or purpose (tuition or living expenses).

For basic livelihood security recipients, near-poverty class, multi-child families, and university (graduate) students with income below the median standard (student aid level 5), it is advantageous to use the income-contingent repayment student loan as interest can be waived. The tuition loan limit allows borrowing the full amount needed for semester registration within the total loan limit by academic system, and living expense loans can be applied for up to 2 million KRW per semester.

If it is difficult to apply for the income-contingent repayment loan product due to the approximately 8-week period required to assess the student aid level, students can first apply for the general repayment student loan and later convert to the income-contingent product depending on conditions such as the assessed student aid level.

Bae Byeong-il, Chairman of the Korea Student Aid Foundation, stated, “We support young people who continue their studies despite difficult circumstances, and we will do our best to ensure that students can use student loans reasonably and as much as needed where necessary.”