Gyeonggi-do Launches Credit Recovery Support for Long-term Student Loan Delinquents

Poster for Credit Recovery Support for Long-term Overdue Student Loan Borrowers in Gyeonggi-do

Gyeonggi Province is stepping up to support credit recovery for long-term student loan delinquents.

The province announced that from the 3rd, it will begin accepting applications for the 'Credit Recovery Support for Long-term Student Loan Delinquents.'

This project supports residents who have been registered with credit rating information due to student loans (formerly known as credit delinquents) in their credit records. Last year, the province supported 457 residents with a total of 175 million KRW.

The support targets residents who have lived in Gyeonggi Province for more than one year according to their resident registration and whose credit rating information has been registered with the Korea Credit Information Services due to student loans from the Korea Student Aid Foundation. The province selects eligible recipients monthly.

Selected individuals must enter into an installment repayment agreement with the Korea Student Aid Foundation. This agreement allows the repayment period to be extended up to 20 years if approximately 5% of the total debt amount, including principal and interest, is prepaid.

By entering into the installment repayment agreement, benefits such as removal of credit rating information registration with the Korea Credit Information Services, exemption from delinquency interest, and suspension of legal actions are provided. Additionally, spreading the repayment of principal and interest over a long period reduces the immediate repayment burden.

The province provides support up to 1 million KRW for the initial payment (within 5% of the repayment principal and interest) to those who enter into the installment repayment agreement.

Applications can be submitted online (mobile) through the Gyeonggi Civil Service 24 website (gg24.gg.go.kr).

Kim Hyang-sook, Director of Lifelong Education at the province, stated, "The number of residents facing economic difficulties due to student loan delinquencies is increasing," adding, "We will strive to ensure residents can enjoy more equitable opportunities through credit recovery support."

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