Incheon City Abolishes Income Criteria for Student Loan Interest Support for University Students

Incheon City has abolished the income criteria previously used to select recipients for its student loan interest support program for university students.

The city has decided to provide student loan interest support for university and graduate students regardless of income, and will begin accepting applications starting August 4. This round of applications covers interest incurred during the first half of this year (January to June), and even previous recipients must reapply.

Until now, the city had provided student loan interest support only to households in the 8th income decile or below (as determined by the Korea Student Aid Foundation) or to households with three or more children.

Going forward, any current university (including graduate school) student, student on leave of absence, or unemployed graduate whose parent or themselves has been registered as a resident of Incheon for at least one year may apply. For unemployed graduates, support is available within five years of university graduation or within two years of graduate school graduation.

Applicants who already receive student loan interest support from other local governments or institutions will be excluded. The application period runs from August 4 to September 5, and applications can be submitted through the Incheon City website.

Incheon City Hall

With the abolition of the income criteria, the number of university students in Incheon eligible to apply for student loan interest support is estimated to increase by about 5,000, from the previous 12,000 to 17,000.

Last year, the city received applications from 3,469 students for student loan interest support and paid out a total of 225 million won. On average, each student received about 70,000 won in annual interest support.

After document screening, selected recipients will receive support in the form of a deduction from the principal and interest of their personal loan accounts in December this year.

An official from Incheon City stated, "We will continue to expand the student loan interest support program so that young people who will lead Incheon's future can focus on their studies and career preparation."