The Ministry of Education (Acting Prime Minister, Deputy Prime Minister and Minister of Education Lee Jooho) and the Korea Student Aid Foundation (Chairman Bae Byungil) will begin accepting applications for student loans for the second semester of the 2025 academic year starting July 2.
Students can apply for student loans using their own electronic signature method through the Korea Student Aid Foundation website or mobile app. Applications for tuition loans will be accepted until October 23, and applications for living expense loans will be accepted until November 18.
Students who need student loans should apply at least eight weeks before their university’s registration deadline, taking into account the student aid eligibility assessment period (approximately eight weeks), in order to ensure a stable loan process.
The interest rate for student loans for the second semester of the 2025 academic year has been frozen at 1.7%, in accordance with the resolution of the first 2025 Student Aid System Deliberation Committee held on June 4, 2025.
This rate was set in consideration of the direction for the student loan interest rate cap following the amendment of the “Special Act on Student Loan Repayment after Employment,” as well as the challenging economic circumstances faced by young people. The cap on interest rates has been lowered from 120% to 110% of the average yield of five-year government bonds over the past three years. The current 1.7% interest rate being offered is 46% of the student loan interest rate cap (3.687%).
With the long-term maintenance of low interest rates, it is expected that anyone, regardless of economic circumstances, will be able to pursue higher education opportunities according to their will and ability.
Starting from the second semester of the 2025 academic year, the application period will be expanded to include weekends and public holidays in order to improve access to the student loan system. Applications can be submitted via the website or mobile app from 9:00 a.m. to midnight, regardless of the day of the week. Students are encouraged to apply and undergo screening in advance, taking into account the review period, and to execute the loan as needed when necessary.
In addition, as in the first semester, students can apply for the full amount of tuition required (with a total limit per academic program for general repayment student loans), and up to 2 million won for living expenses. Interest exemption for users of income-contingent student loans (for students from basic livelihood, lower-income, multi-child families, and those in student aid bracket 5 or below) will also continue to be provided.
Bae Byungil, Chairman of the Korea Student Aid Foundation, stated, "To enhance convenience and reduce the repayment burden for student loan users, we are maintaining the low interest rate of 1.7% and expanding application hours to weekends and public holidays," adding, "We will continue to make every effort to operate a student loan system that is more accessible to the public."
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