Seoul City and Korea Student Aid Foundation Support Youth Credit Recovery through Student Loans

Online Application via Seoul Youth Portal from the 29th to September 30th
Initial Payment Support When Signing a Deferred Repayment Agreement with Korea Student Aid Foundation

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government and the Korea Student Aid Foundation announced on the 29th that they will implement the ‘2021 Youth Student Loan Credit Recovery Support Project,’ which provides credit caution information removal and initial payment support for young people who have become credit caution subjects due to university student loans.

This project allows young people who have become credit caution subjects due to student loans to apply for participation in the credit recovery support project with the Seoul Metropolitan Government and sign an installment repayment agreement with the Korea Student Aid Foundation. The Seoul Metropolitan Government supports an initial payment equivalent to 5% of the debt amount (installment repayment agreement amount), and the Korea Student Aid Foundation removes the credit caution registration information and waives the delayed compensation.

Any young person aged 19 to 39, registered as a resident in Seoul as of the announcement date, who is registered as a credit caution subject due to student loans, can apply for participation. If you wish to participate in the project, you must contact the ‘Korea Student Aid Foundation Credit Recovery Support Counseling Center’ before applying to confirm in advance whether you are registered as a credit caution subject.

The application period is from the 29th to September 30th, and applications can be submitted through the Seoul Youth Portal. After the support recipients are confirmed, if the credit caution subject signs an installment repayment agreement with the Korea Student Aid Foundation, the Seoul Metropolitan Government and the Korea Student Aid Foundation will provide benefits such as an initial payment support equivalent to 5% of the installment repayment agreement amount; however, regular installment payments thereafter must be paid by the individual according to the agreement.

The Seoul Metropolitan Government plans to select about 400 support recipients in order of installment repayment agreement conclusion within this year’s budget to support credit recovery. The project may close early if the budget is exhausted ahead of schedule.

Jo Wan-seok, Head of the Youth Division, said, "There are many unfortunate cases where young people become credit caution subjects from the very beginning of their social start due to high tuition fees and education costs," adding, "We will actively support these young people so that they can start from a better starting line."

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