Seongnam City to Provide Up to 1 Million Won Support for Youth with Student Loan Delinquencies

[Asia Economy (Seongnam) = Reporter Lee Young-gyu] Seongnam City in Gyeonggi Province will recruit eligible candidates from July 27 to September 29 to support the credit recovery of young people who have become so-called "credit delinquents" due to failure to repay student loans.

Eligible applicants are young people aged 19 to 34 who, as of the announcement date (July 27), have had their own or direct ascendants' residence continuously in Seongnam for more than one year, and who have defaulted on student loan repayments for more than six months and are registered in the Korea Student Aid Foundation's credit evaluation information.

The city will provide support amounting to 10% of the total debt (up to 1 million KRW) after conducting a qualification review of applicants.

Upon receiving the initial payment, the Korea Student Aid Foundation will cancel the registration of the delinquent's credit evaluation information and reduce the overdue interest.

The remaining student loan can be repaid in installments over a maximum period of 20 years through a separate agreement with the Korea Student Aid Foundation.

Applicants can submit their application forms through the Seongnam City website (Citizen Participation → Online Application → Youth Credit Recovery Support). They may also visit the Youth Policy Division on the 6th floor of City Hall or apply by mail.

Meanwhile, there are 193 young people registered with the Korea Student Aid Foundation in the Seongnam area, with a total debt amounting to 1.792 billion KRW.

This content was produced with the assistance of AI translation services.