Credit Recovery Committee: "Get Student Loan and Financial Sector Debt Adjustment at Once"

Integrated Debt Adjustment System for Student Loans and Financial Sector Loans by the Credit Recovery Committee. Photo by Credit Recovery Committee

[Asia Economy Reporter Song Seung-seop] On the 27th, the Credit Recovery Committee launched a debt adjustment system that integrates student loans from the Korea Student Aid Foundation and loans from financial institutions.

This debt adjustment is a follow-up measure to the "Business Agreement for Supporting the Reduction of Youth Debt Burden" signed last November by the Ministry of Education, the Financial Services Commission, the Korea Student Aid Foundation, and the Credit Recovery Committee. Its purpose is to support the swift recovery of young multiple debtors suffering from the double burden of student loans and financial institution loans.

From today, young multiple debtors can receive debt adjustment at once through the Credit Recovery Committee. Until now, financial debts had to be applied for at the Credit Recovery Committee, and student loans separately at the Korea Student Aid Foundation.

The Credit Recovery Committee supports young debtors who apply for student loan debt adjustment by providing principal reduction, full waiver of overdue interest, and applying installment repayment periods of up to 20 years. The debt adjustment fee of 50,000 won will also be waived.

The target is those who have been overdue on Korea Student Aid Foundation student loans for more than three months.

Lee Jae-yeon, Chairman of the Credit Recovery Committee, emphasized, “We will continue to provide customized support such as credit management, financial support for low-income people, and employment activities after debt adjustment so that young people struggling with debt problems can overcome their debt issues and focus on employment and economic activities.”

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