5% of Loan Debt Supported
One-on-One Counseling Services Provided
The city of Gwangju announced on the 10th that it will be accepting applications for the "Student Loan Delinquent Credit Recovery Support Project" until November, aimed at helping citizens with long-term student loan delinquencies restore their credit.
The city provides one-on-one financial counseling services to participants. After counseling, those who choose to enter into a debt installment repayment agreement with the Korea Student Aid Foundation will receive support for 5% of their debt amount (up to 1 million KRW). Notably, starting this year, the eligible age range has been expanded from 19-39 years old to all ages.
The Korea Student Aid Foundation, which has signed a business agreement with the city, offers benefits such as the removal of credit delinquency records (delinquency information), full exemption of overdue interest, and a postponement of measures like asset seizure, thereby alleviating financial constraints caused by debt.
As the economic downturn continues and the number of long-term student loan delinquents increases, Gwangju signed a business agreement with the Korea Student Aid Foundation in 2020 and has supported 214 individuals up to last year.
Those wishing to participate can apply online through the Gwangju Youth Integrated Platform. Applications will be accepted until the end of November this year, with support provided within the budget limit.
Choi Kyunghwa, Director of University Talent Policy, stated, "The issue of student loan delinquency is a structural social problem as it is linked to difficulties in finding employment, illegal loans, poor credit, and resulting economic and psychological setbacks, which can become the starting point of poverty. We hope this project will break the vicious cycle of debt and serve as a starting point for participants to confidently become self-reliant members of the local community."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
