'Support for Credit Recovery from Student Loan Delinquency'... Gyeonggi Province to Provide up to 1 Million Won

The Gyeonggi Provincial Government is launching a support program to help restore credit for residents facing student loan delinquency.

Starting April 1, the Gyeonggi Provincial Government announced that it will accept applications for the "Support Program for Credit Recovery of Long-term Student Loan Delinquents" to assist residents who are suffering from credit disadvantages due to long-term student loan delinquency.

Eligible applicants are residents who have lived in Gyeonggi Province for more than one year as of the announcement date and who have been registered as individuals with credit issues with the Korea Credit Information Services due to student loan delinquency of more than six months with the Korea Student Aid Foundation.

Upon selection, applicants will enter into an installment repayment agreement with the Korea Student Aid Foundation, and the Gyeonggi Provincial Government will provide an initial payment covering 10% of the agreed debt amount, up to a maximum of 1 million won.

Once an installment repayment agreement is signed, the individual's credit delinquent status will be lifted, enabling them to restore their credit. Restrictions on loans and employment will be removed, all overdue interest will be waived, and any legal action will be put on hold.

Currently, 14 local governments nationwide are operating similar programs. However, unlike some local governments that limit eligibility to those under the age of 39, the Gyeonggi Provincial Government provides support without any age restrictions.

Gyeonggi Provincial Government

Applications can be submitted online through the Gyeonggi-do integrated civil complaint platform, "Gyeonggi Minwon 24" (gg24.gg.go.kr). If applicants consent to administrative information linkage, they can apply conveniently without submitting separate documents.

The Gyeonggi Provincial Government will conduct monthly reviews to select recipients and notify individuals of the results. The financial support is paid directly to the Korea Student Aid Foundation, not to the applicants. The program may close early if the budget is exhausted. Duplicate support is restricted for those who have already received similar support from other agencies or local governments.

Since the program was implemented in 2021, a total of 1,852 residents have received approximately 718 million won in support as of last year. Of these, 215 individuals have fully repaid their debts, and 1,473 are maintaining installment repayments, resulting in a normal repayment rate of 91.1%.

Kim Sunhwa, Director of the Youth Opportunity Division at the Gyeonggi Provincial Government, stated, "We hope this program will help residents who are struggling to enter society due to student loan delinquency to restore their credit and achieve economic independence."

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