Daegu City Supports Interest on Student Loans for University Students... Also Accepting Credit Recovery Applications

Applications Accepted for 6 Weeks via City Hall Website Until October 28

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongwook Park] Daegu City announced on the 13th that it will provide interest support for student loans borrowed from the Korea Student Aid Foundation to local university students. Along with this, applications for support to help young people who have become credit delinquents due to student loans recover their credit will also be accepted.

Applications for student loan interest support are available to those who have their own or direct ascendants' resident registration in Daegu, and who are currently enrolled (including on leave) students or graduates since 2019 (excluding graduate students) of universities located in Daegu or Gyeongbuk.

The support covers the interest amount incurred in 2020 on student loans borrowed from the Korea Student Aid Foundation between 2014 and 2020 for students from households in the 8th income decile or below, or from multi-child households (three or more children). Children from multi-child households can apply regardless of income decile. However, if the budget is exceeded, the support amount may be reduced according to income decile.

Applicants for student loan credit recovery support are young people aged 39 or under who are registered as credit delinquents due to overdue repayment of student loans from the Korea Student Aid Foundation and currently have resident registration in Daegu as of the announcement date.

As of the end of June 2020, there are 941 young people aged 39 or under in the Daegu area registered as delinquent debtors for student loans with the Korea Credit Information Services. Daegu City plans to support the initial payment of installment repayment agreements (5% of the total agreed amount) for applicants among them. If the number of applicants exceeds the budget, recipients will be selected in order of application. Applications can be made through the Daegu City website.

Kang Myung-sook, Director of the Women's and Youth Education Bureau of Daegu City, said, "Recently, young people are facing greater difficulties in preparing tuition and living expenses due to COVID-19. We hope that this student loan interest and credit recovery support will help alleviate the economic difficulties of local university students even a little."

Meanwhile, Daegu City has been implementing the student loan interest support project since 2016, providing about 1.2 billion KRW in student loan interest support to approximately 11,500 local university students. It has also supported the removal of credit delinquency information for 132 young delinquent debtors, receiving positive responses from young people.

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