Student loans in South Korea , are student loans Provided to South Korea ‘s students That are managed by the Korea Student Aid Foundation (KOSAF) qui Was Established in May 2009. According To the Governmental philosophy That Korea’s future depends is talent development and no student Should leave studying to financial reasons, they help students grow into talents that serve the nation and society as members of Korea. [1] Through the management of the country’s national programs, student loan programs, and talent development programs, KOSAF offers one of their major tasks. [2] [ unreliable source ]

Main Loan Programs

Income Contingent Loan

For undergraduate students of all grades from low-income households in the 1st through 7th income bracket levels; Also, for students (irrespective of income level) from households with three or more children-beginning with the third child. Strong academic performance is part of the eligibility criteria. Loans are not subject to credit approval. Loan applicants must be enrolled for undergraduate study in a postsecondary institution in Korea. Students who do not qualify for this loan program are not eligible for this program. Loan must be used for tuition, qualifying school fees, and other specific education-related costs, including living expenses during study. Loan payments may not exceed the student’s financial need; There is no other limit on the amount borrowed (loan program permits full coverage of tuition and expenses). KRW 600,000 (at least KRW 100,000 for tuition / school fees plus at least KRW 500,000 for living expenses). Under the income contingent repayment system, a borrower does not have to pay the principal amount or interest for a certain minimum threshold level for repayment. Once the borrower’s annual income is greater than the repayment minimum threshold level, the borrower is under obligation to begin repayment. The lower limit is KRW 600,000 (at least KRW 100,000 for tuition / school fees plus KRW 500,000 for living expenses). Under the income contingent repayment system, a borrower does not have to pay the principal amount or interest for a certain minimum threshold level for repayment. Once the borrower’s annual income is greater than the repayment minimum threshold level, the borrower is under obligation to begin repayment. The lower limit is KRW 600,000 (at least KRW 100,000 for tuition / school fees plus KRW 500,000 for living expenses). Under the income contingent repayment system, a borrower does not have to pay the principal amount or interest for a certain minimum threshold level for repayment. Once the borrower’s annual income is greater than the repayment minimum threshold level, the borrower is under obligation to begin repayment.

Direct Loan (DL)

Reduced-interest loans that come from and are guaranteed by the government. Qualifying borrowers, on certain conditions, may be eligible for interest relief offered by the government. For undergraduate and graduate students of any grade level, from households of any income level. Loan applicants must be enrolled for undergraduate study in a postsecondary institution in Korea. Students who do not qualify for this loan program. Satisfactory academic performance is part of the eligibility criteria. Loans are subject to credit approval. Loan must be used for tuition, qualifying school fees, and other specific education-related costs, including living expenses during study. Loan payments may not exceed the student’s financial need. Depending on the type of school (ie undergraduate, graduate), the upper limit on the amount borrowed from KRW 40 million to KRW 90 million. KRW 600,000 (at least KRW 100,000 for tuition / school fees plus at least KRW 500,000 for living expenses). The repayment system offers a borrower the advantage of a loan. This maximum period of time is determined by the borrower’s year in school and the remaining number of years within the standard period of the borrower’s program. After the grace period, the borrower is given up to 10 years in which to repay the loan principal amount and interest. The repayment period is dependent upon the borrower.

  • For undergraduate students in the 1st semester of the 1st year that apply for this loan, only credit is considered when making approvals for loans.

Loan for Rural Students (LRS)

No-interest loans that come from and are guaranteed by the government. Highlights the customized aspect of the student loans through KOSAF. For undergraduate students of all grades and any income level, the parents and guardians have lived for more than 6 months (180 days) and / or students who have been living in agriculture Fisheries industry for more than 6 months. Students from households with more than three children may be given priority. Loan applicants must be enrolled for undergraduate study in a postsecondary institution in Korea. Distance learning program, a continuing education program through an academic credit bank system, Or a school outside of Korea. Satisfactory academic performance is part of the eligibility criteria. Loan must be used for tuition and qualifying school fees (not including living expenses). Offers full coverage of tuition and qualifying school fees. Loan payments may not exceed the student’s financial need.

Variations

Living Expenses Loan

For students undergraduate and graduate students (through the SL). Degree-to-Degree in Student Loan (ICL) and / or the Standard Student Loan (SL). For 1st- or 2nd-year undergraduates, the same academic and income level qualifications for the ICL apply; For 3rd- or 4th-year undergraduates, the academic and income level qualifications for the ICL and the SL apply. Loan must be used for necessary non-tuition, living expenses during the academic year that may include room and board, books and supplies, and transportation costs. KRW 500,000 to KRW 1 million per semester (or up to KRW 2 million per school year). May receive loan on its own or in combination with a student loan (for school tuition and fees).

KOSAF Loan Conversion Program

For undergraduate and graduate students who qualify for the Income Contingent Loan (ICL). Students receiving the Direct Loan (DL) who qualify for the ICL may be eligible to shift from the DL to the ICL. The transition only Applies to the school semester during which the loan approval is made. For all previous semesters during which the borrower received the DL, the terms and conditions of the DL fully apply (eg the interest gained on the principal loan each month while the borrower was receiving the DL must be repaid).

Current situation

About 750,000 students borrowed about 2.7 trillion KRW in 2011. [3] KOSAF seeks lower interest rates by issuing direct loans. [4] Since KOSAF issue government-guaranteed bonds, students can borrow directly from the foundation, which reduces their burden on tuition payment. [5]

See also

  • Student benefit
  • Student debt

References

  1. Jump up^ “50 Euro Lenen met een Minilening” . 50 Euro Lenen . Retrieved 15 May 2017 .
  2. Jump up^ ko: 한국 장학 재단
  3. Jump up^ “2 학기 학자금 대출 1 조 2615 억 … 든든 ↑ 일반 ↓ – 머니 투데이 뉴스” .
  4. Jump up^ “[공기업 채권 발행 규모 와 전략 -⑨] 한국 장학 재단” (in Korean).
  5. Jump up^ “<인터뷰> 창립 2 년 한국 장학 재단 이경숙 이사장” (in Korean).