The Korea Student Aid Foundation (Chairman Bae Byungil), a leader in fostering an artificial intelligence (AI) culture, announced on August 19 that it is providing information on student loans that can significantly reduce the financial burden of tuition payments for the second semester of the 2025 academic year.
The Korea Student Aid Foundation, established in 2009 under the Ministry of Education as a quasi-governmental organization, aims to provide professional and comprehensive financial support for higher education so that anyone can have the opportunity to pursue higher education regardless of their economic circumstances. With an annual budget exceeding 11 trillion won, the foundation operates a variety of programs to nurture future talent, including national scholarships, student loans, national work-study scholarships, national excellence scholarships, donations, and mentoring.
Applications for student loans for the second semester of the 2025 academic year are currently being accepted. Tuition loans can be applied for until October 23, and living expense loans until November 18.
In particular, starting this semester, applications can be submitted not only on weekdays but also on weekends and public holidays from 9 a.m. to midnight, making the process more convenient. However, loan disbursement is only available on weekdays.
To apply for a student loan, applicants must first register as a foundation member and prepare an identity verification method (such as a joint certificate). It is recommended to apply with sufficient time in consideration of the review period, which takes about 7 to 8 weeks.
If an urgent student loan is needed due to an imminent payment deadline, the pre-approval system allows students to first use the general repayment student loan, and it can be switched to an income-contingent repayment student loan by November 20.
The student loan interest rate is frozen at 1.7%. The loan limit covers the full amount of tuition as needed, and up to 2 million won can be applied for as a living expense loan.
Students from basic livelihood security recipient households, lower-income groups, multi-child families, or those with a median income or below are eligible for interest exemptions on both tuition and living expense loans if they use the income-contingent repayment student loan, making it advantageous for them.
Bae Byungil, Chairman of the Korea Student Aid Foundation, stated, "We encourage students to use the student loan system only as much as is truly necessary to continue their academic pursuits, and we will continue to improve the system so that more young people can use it with less financial burden."
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