"Six Months of Student Loan Interest Support"… Seoul to Accept Applications from the 6th

A Total of 30,000 Recipients Selected in First and Second Halves;
Full Interest Support for Income Brackets 1 to 7
Average Student Loan Interest Support Last Year: 107,000 Won Per Person
Three-Part Youth Debt Relief Package Includes Credit Recovery and Emergency Loans

The Seoul Metropolitan Government will provide support for student loan interest accrued over a six-month period to 30,000 young people this year.

On February 3, the city announced that applications for the three-part “Youth Debt Relief Package”—comprising “Student Loan Interest Support” and “Student Loan Credit Recovery Support”—will be accepted starting February 6, while applications for the “Emergency Living Stabilization Loan” will be accepted on a rolling basis.

Citizens burdened by student loan interest can benefit from the Student Loan Interest Support program, which selects recipients twice a year, in the first and second halves.

This program deducts already accrued interest on student loans from the Korea Student Aid Foundation from the remaining principal and interest. This year, approximately 30,000 people (15,000 each in the first and second halves) are expected to receive support. Last year, 29,327 people benefited from the program, with an average support amount of 107,000 won per person.

Those who apply this time will receive support for interest accrued in the second half of last year (July to December), including tuition and living expenses. University and graduate students currently enrolled or on leave, as well as graduates within the past five years, who reside in Seoul and are repaying Korea Student Aid Foundation loans, can apply via the Youth Portal website from 10 a.m. on February 6 to 6 p.m. on March 18.

The final list of recipients and support amounts will be announced on the Korea Student Aid Foundation website in July.

For households with multiple children and those in income brackets 1 to 7, the full amount of accrued interest will be supported. For those in the 8th income bracket, the Seoul Student Loan Interest Support Review Committee will determine the support amount within the budget limits.

Youth who have become credit delinquents due to long-term delinquency on Korea Student Aid Foundation student loans can receive assistance through the Student Loan Credit Recovery Support program. To remove the credit delinquency record, recipients must enter into an installment repayment agreement with the Korea Student Aid Foundation, and the city will cover the initial payment (5% of the debt amount) required at this stage.

Seoul residents aged 19 to 39 who have been registered as credit delinquents due to Korea Student Aid Foundation loans can apply via the Youth Portal website from 10 a.m. on February 6 to 6 p.m. on November 20. However, those who have already received similar support from the city or other organizations will be excluded.

The city also offers the Emergency Living Stabilization Loan for young people who are financially struggling and have low credit scores, making it difficult to obtain even small loans for living or medical expenses.

The Emergency Living Stabilization Loan is a program supported by the Seoul Metropolitan Government in partnership with Shinhan Bank and the Credit Counseling & Recovery Service to prevent low-credit youth facing personal rehabilitation or debt adjustment from resorting to high-interest loans. Last year, a total of 2,629 people received support through this program.

Seoul residents aged 19 to 39 who have faithfully repaid or completed debt adjustment or personal rehabilitation can receive loans of up to 15 million won at an annual interest rate of 3% for living expenses, medical costs, or repayment of high-interest loans.

Applications for the Emergency Living Stabilization Loan are accepted at any time. Interested youth should first consult with the Credit Counseling & Recovery Service call center and then visit the nearest branch office.

Kim Cheolhee, Director of Future Youth Planning at the Seoul Metropolitan Government, said, “We will continue to develop policies that young people can truly feel, so that they do not have to give up their daily lives or futures due to debt burdens.”

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