National Tax Service Notifies 200,000 People of Repayment Amounts for State Student Loan Repayment Obligations

[Sejong=Asia Economy Reporter Kim Hyunjung] The National Tax Service announced on the 26th that it has notified 200,000 people who have an obligation to repay based on last year's earned income among those with income-contingent student loans.

The income-contingent student loan repayment system was introduced in 2010, providing university students with loans covering full tuition and living expenses, with principal and interest repaid according to income levels after earning income.

This year's mandatory repayment targets are borrowers whose income amount last year (total salary amount - earned income deduction) exceeded 13.23 million KRW. Based on total salary, those earning more than 21.74 million KRW are obligated to repay this year. Among the 200,000 notified, 65,000 are student loan borrowers who are subject to mandatory repayment for the first time this year.

Mandatory repayment targets must repay 20% of the income amount exceeding the repayment standard income this year. Borrowers who received the notification can either prepay to the payment account specified in the mandatory repayment amount payment notice received from the National Tax Service or choose to have the amount withheld from their salary at their workplace.

Prepayment can be made by paying the full mandatory repayment amount for this year in a lump sum by the end of June or by splitting it into two payments of 50% each at the end of June and November. If 50% or the full amount is prepaid by the end of May, the loan information will not be notified to the employer. If prepayment is not chosen, one-twelfth of the annual repayment amount will be withheld from the monthly salary.

If a person became subject to mandatory repayment due to income last year but is experiencing difficulties such as unemployment, they can apply for repayment deferment. Repayment deferment can be applied for on the National Tax Service's income-contingent student loan repayment website under 'Civil Service Guide.' Applications can also be made via mobile. For inquiries about mandatory repayment, contact the corporate tax department at any tax office nationwide or the National Tax Consultation Center.

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