Assemblyman Kim Hoe-jae: 2.9 Trillion Won in Student Loans for Low-Income Families Over the Past 5 Years

Living Expense Loans Exceed Tuition Loans Among Low-Income Student Loans

Urgent Need for Support Measures for Youth Generation Crushed by Debt Before Seeing the Light

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] It has been revealed that student loans for low-income college students have reached 3 trillion won over the past five years. In particular, it was analyzed that low-income college students borrowed about half of the total student loans.

According to the 'Student Loan Status' data submitted by the Korea Student Aid Foundation to Kim Hoe-jae, a member of the Democratic Party of Korea (Yeosu-si Eul, Jeonnam), student loans for low-income college students in the bottom three income quintiles from 2017 to 2021 reached 2.8802 trillion won over the past five years.

The proportion of low-income student loans in the total student loans was also analyzed to be close to half, at 44.8%. The total student loans over the past five years amounted to 6.4325 trillion won.

In particular, student loans for the lowest income quintile were 1.2406 trillion won, the highest amount among all income brackets.

However, low-income student loans steadily decreased from 734.5 billion won in 2017 to 478.6 billion won in 2021.

Among low-income student loans over the past five years, tuition loans amounted to 1.3951 trillion won. Living expenses loans amounted to 1.4851 trillion won.

Low-income living expenses loans surpassed tuition loans (285.3 billion won) with 319 billion won in 2018 and continued to exceed tuition loans for four consecutive years until 2021.

In 2021, low-income living expenses loans were 250 billion won, reduced compared to 2018, but still about 21.5 billion won more than tuition loans of 228.6 billion won.

Due to the expansion of national scholarships, tuition loans decreased, but it is interpreted that the burden of living expenses for college students continued.

The higher the income, the lower the student loans.

This is why concerns arise that the poorer one is, the more debt they must incur to receive education, and the burden of repaying loans can lead not only to academic disparities but also to asset gaps among the younger generation.

Student loans for the middle class, classified as the 4th to 7th income quintiles, over the past five years amounted to 1.9203 trillion won, about 960 billion won less than low-income student loans.

Student loans for the upper class, the 8th to 10th income quintiles, over the past five years were 1.461 trillion won, about half the amount of low-income student loans.

Kim Hoe-jae said, “Comprehensive support measures are urgently needed for young people who are crushed by debt before they even see the light,” adding, “We must create a society where young people can study freely, free from economic burdens.”

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

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