Gyeonggi-do Expands Credit Recovery Support for Long-Term Student Loan Delinquents

Gyeonggi Province will begin supporting credit recovery for long-term student loan delinquents starting from the 1st.

Gyeonggi Province announced that from this year, it will expand the initial payment for installment repayment agreements from the previous 5% to 10% for residents who have continuously lived in the province for over a year and whose credit information has been registered with the Korea Credit Information Services due to student loans from the Korea Student Aid Foundation.

Gyeonggi Province will notify the selection results monthly and support 10% of the total debt amount, including principal and interest, up to a maximum of 1 million KRW per person regardless of age or income.

Gyeonggi-do Student Loan Long-term Delinquent Borrowers Credit Recovery Support Guide Poster

If selected as a beneficiary and an installment repayment agreement is signed with the Korea Student Aid Foundation, all overdue interest will be waived immediately, and the registered credit information will be removed.

Accordingly, difficulties in loans and employment caused by credit deterioration can be resolved, and legal actions due to arrears can be deferred.

Applications for support can be made through Gyeonggi Civil Service 24 (gg24.gg.go.kr). When consenting to the joint use of administrative information, the resident registration abstract is automatically linked, so applications can be made without submitting separate documents. Duplicate support with student loan credit recovery support projects from other institutions or local governments is not allowed, and each person can apply only once in their lifetime.

Since 2021, Gyeonggi Province has been operating a credit recovery support project for residents registered with credit information due to long-term student loan delinquency of six months or more (formerly known as credit delinquents). Until last year, benefits totaling 564 million KRW were provided to 1,556 people, and this year, a budget of 240 million KRW will be invested.