Housing Finance Corporation Lowers Interest Rates for Student Loan Users... Interest Burden Reduced by About 60%

Korea Housing Finance Corporation logo.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Korea Housing Finance Corporation (HF) announced on the 27th that it will lower the loan interest rate for student loan users to an annual 2.9%.

The corporation handled student loans from July 2005 to May 2009 and currently manages them by outsourcing principal and interest collection tasks to 14 commercial banks.

The target group consists of approximately 18,000 people who took out student loans from HF between July 2005 and May 2009 and are currently using them. The corporation plans to apply the interest rate reduction to all eligible users without requiring a separate application process.

The interest rate reduction will be applied from the first interest payment date after the loan bank's system development is completed, based on June 28.

Since the interest calculation timing may vary depending on the loan bank and interest payment date, detailed inquiries can be made to the handling bank, the corporation's call center, or the website.

An HF official stated, "The loan interest rate, which was previously an annual average of 7.2%, has been lowered to 2.9%, reducing the interest burden by about 60%," and added, "We will continue to actively promote institutional improvements to enhance the rights and interests of financial consumers."

HF has cooperated with the Korea Student Aid Foundation to reduce the interest repayment burden for student loan users by converting the loan interest rate to an annual 2.9% for about 300,000 people in two rounds in 2014 and 2020.

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