Interest Rate at 1.7%... Deadline on the 20th
Up to 2 Million Won Available for Application
The Ministry of Education (Deputy Prime Minister and Minister of Education Lee Jooho) and the Korea Student Aid Foundation (Chairman Bae Byungil) are accepting applications for the 2025 spring semester living expense loan from January 3 to May 20, 6:00 p.m.
The living expense loan, which can be used for dormitory and meal costs, textbooks and supplies, transportation, and other purposes, is offered at an ultra-low interest rate of 1.7% to ease the repayment burden on young people. Students may apply for up to 2 million won per semester.
Meanwhile, students who have received a standard repayment student loan for the first semester may convert it to an Income-Contingent Loan (ICL) according to their financial aid eligibility bracket until 6:00 p.m. on the 22nd. The ICL is available to undergraduate students in financial aid bracket 9 or below and graduate students in bracket 4 or below, and repayment is deferred until a certain income is earned after employment.
In particular, students who are recipients of the Basic Livelihood Security Program, members of the lower-income class, from multi-child families, or whose household income is at or below the median income level (financial aid bracket 5 or below) are strongly encouraged to convert to an ICL, as they can benefit from an interest exemption until their annual income exceeds the repayment threshold.
Applications for the 2025 spring semester living expense loan and ICL conversion loan can be submitted via the Korea Student Aid Foundation website or mobile app.
Bae Byungil, Chairman of the Korea Student Aid Foundation, stated, "The living expense loan is intended to support students so that they can focus on their studies, and therefore, applications should be submitted by those in genuine need before the deadline. For the ICL conversion loan, eligible students should definitely convert, considering benefits such as interest exemption." He also urged, "As there may be heavy traffic on the website on the final day, students who have not yet applied should do so in advance."
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