Student Loan Applications for Second Semester Open from July 2... Interest Rate at 1.7%

Tuition Loan Applications Open Until October 23,
Living Expense Loans Available Until November 18

The Ministry of Education and the Korea Student Aid Foundation will begin accepting applications for student loans for the second semester of this year starting from July 2.

According to the Ministry of Education on July 1, the interest rate for student loans in the second semester will remain at 1.7%, marking the fifth consecutive year it has been frozen. The Ministry explained that this measure reflects both the lowered upper limit on student loan interest rates following the amendment of the "Special Act on Repayment of Student Loans After Employment" and consideration of the economic circumstances faced by young people.

Loan applications can be submitted through the Korea Student Aid Foundation's website or mobile app. Tuition loans are available until October 23, while living expense loans (up to 2 million won per semester, 4 million won per year) can be applied for until November 18.

Starting from the second semester, students will be able to apply for student loans even on weekends and public holidays. Applications will be accepted from 9 a.m. to midnight on both weekdays and weekends (including public holidays), except on the final day of the application period, when the deadline is 6 p.m.

The loan amount can cover the full tuition fee (however, there is a personal total limit for general repayment student loans), and up to 2 million won is available for living expenses. In addition, interest exemption is provided for borrowers of income-contingent repayment student loans who are in the basic, near-poor, multi-child, or student aid level 5 or below categories.

When applying for student loans, students are advised to apply in advance, taking into account the screening period (approximately eight weeks), to ensure they can use the loan when needed, such as during the tuition payment period.

Choi Eunhee, Director of Human Resources Policy, stated, "By maintaining the loan interest rate, we expect to support young people?who are facing difficulties due to high interest rates and inflation?in pursuing their studies and achieving independence. We encourage students wishing to take out loans to be sure to apply within the application period to receive these benefits."