2021 Academic Year 1st Semester Student Loan Interest Rate 1.7%... Decreased by 0.15%p

Deferred Repayment for University Students in Scholarship Support Bracket 4 or Below After Employment
Income Threshold for Scholarship Repayment Raised by 22.8 Million KRW
Exemptions and Reductions Available in Cases of Death or Disability

The above photo is not related to the article. Photo by Jang Jin-hyeong aymsdream@

[Asia Economy Reporter Hyunju Lee] The student loan interest rate for the first semester of the 2021 academic year will be implemented at 1.7%. This is a 0.15%p decrease from last semester's 1.85%.

The Ministry of Education and the Korea Student Aid Foundation announced the confirmed student loan interest rate for the first semester of this year on the 3rd.

Along with the interest rate reduction, from this year, employment-linked repayment student loans will be fully applied to university students in income bracket 4 or below, allowing deferment of loan repayment during enrollment. Interest-free living expense loans will also be supported.

The income threshold for repayment of employment-linked student loans will be raised from the current annual 21.74 million KRW to 22.8 million KRW.

Starting this year, if the student or their parents experience sudden economic hardship due to unemployment or business closure, repayment of general student loans can be deferred for up to 3 years. Additionally, those who received deferment last year can apply for an additional 2 years of deferment.

In cases where the borrower dies or becomes disabled after taking out a student loan, full or partial exemption of the loan debt may be granted depending on income, assets, and degree of disability. For disabled persons, considering the degree of disability and income/assets, up to 90-30% of the principal and all interest can be exempted, while for deceased persons, any remaining principal and interest exceeding the value of inherited assets will be fully exempted.

Applications for first semester student loans can be submitted from the 6th via the Korea Student Aid Foundation website or application using the student's own joint authentication certificate. Tuition loan applications can be made until April 14, and loan disbursement is possible until 5 PM on the 14th.

Students who need student loans should apply at least 8 weeks before the university registration deadline, considering the period for income bracket assessment and notification, to ensure stable loan processing.

Detailed information regarding scholarship loans can be found on the Korea Student Aid Foundation website, and personalized consultations are available through the customer service center.

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