The interest rate for college student loans for the first semester of 2021 will be lowered from the second semester last year.
On the 3rd, the Ministry of Education and the Korea Scholarship Foundation announced on the 3rd that the interest rate for student loans for the first semester of 2021 will be reduced by 0.15% points per year from 1.85% per year in the previous semester to 1.70% per year.
The Ministry of Education is planning to apply full repayment of student loans after employment to undergraduate students in 4 sections (median income of 4338,000 won or less per month) this semester to reduce the burden of repayment for low-income college students.
The base income that is required to repay student expenses after employment is also raised.
In the case of reimbursable student loans, the repayment base income will increase from 21.7 million won last year to 22.8 million won this year.
This means that if you graduate from college and get a job and your annual income is less than 22.8 million won, you can defer student payments.
In addition, starting this year, repayment of student loans will be suspended for three years in the event of a sudden economic deterioration due to the unemployment or closure of a university student or their parents.
Even if the repayment of general repayment student loans was postponed due to unemployment or closure last year, the grace period can be extended by two years (a total of three years).
The Ministry of Education also confirmed the related notice within this month and implemented the system from April so that students can be exempted from all or part of their student loan debt depending on their income, property, and disability if a student dies or becomes disabled after receiving a student loan. The expected.
The Ministry of Education predicts that the loan interest rate cut will reduce the interest burden of about 1.28 million people by about 8.5 billion won per year.
(Photo = Yonhap News TV, Yonhap News)