Preventing School Dropout Among Self-Reliant Youth... Representative Kim Daesik Proposes Amendment to the Special Act on Student Loan Repayment

"Exemption of Student Loan Interest to Prevent Discontinuation of Studies"

A special law amendment has been proposed to ensure that self-reliant youth do not have to discontinue their studies due to financial difficulties.

Kim Daesik, a member of the National Assembly's Education Committee (People Power Party, Sasang-gu, Busan), proposed the amendment to the "Special Act on Student Loan Repayment After Employment" on the 27th. This amendment aims to prevent self-reliant youth?those who have left child welfare facilities or foster care at age 18?from dropping out of school due to economic hardship. Twenty lawmakers from both ruling and opposition parties joined as co-sponsors of the bill.

Kim Daesik's office explained that this amendment was prepared with bipartisan policy consensus. A total of 20 lawmakers from both sides, including Kim Junhyeok of the Democratic Party of Korea and Kang Kyungsook of the Rebuilding Korea Party, participated as co-sponsors. Bipartisan cooperation was achieved to support youth from vulnerable groups, going beyond political disputes.

Self-reliant youth refers to those who, upon turning 18, are no longer under protective care or have left facilities. Every year, about 1,500 young people step out from the safety net of child welfare facilities into society for the first time. Many of them are left to support themselves without help from family or acquaintances.

According to the Ministry of Health and Welfare's 2023 survey on self-reliance support, 69.5% of self-reliant youth live alone, and 58.5% have experienced being unable to access necessary medical services due to the burden of medical expenses. Although their college enrollment rate rose from 62.7% in 2020 to 69.7% in 2023, there are still many cases where they cannot continue their studies due to tuition burdens and other financial difficulties.

Among self-reliant youth, 16.1% pay for college tuition through student loans from the Korea Student Aid Foundation. However, for those who find it difficult to become financially independent before employment, these loans can actually become an obstacle to continuing their education.

The current "Special Act on Student Loan Repayment After Employment" provides interest exemptions on student loans for military service members under the Military Service Act, basic livelihood security recipients, lower-income groups, families with multiple children, and single-parent families. However, those eligible for self-reliance support under Article 38 of the Child Welfare Act are excluded from these interest exemptions, leaving them in a blind spot.

The amendment proposed by Kim Daesik includes self-reliant youth as eligible for student loan interest exemptions, enabling practical educational support so they can continue their studies without financial burden.

Kim stated, "The most urgent task for self-reliant youth is maintaining their livelihood, and continuing their studies on that foundation is the true starting point of independence," emphasizing, "It is the nation's duty to help young people become healthy and independent members of society."

He also said, "Through this law amendment, we will ensure that young people do not have to interrupt their studies due to leaves of absence or dropping out, and we will closely examine the system to prevent any blind spots in national support."

Daesik Kim, Member of the National Assembly.

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