The Ministry of Education and the Korea Student Aid Foundation will begin accepting applications for student loans for the first semester of the 2025 school year on Friday, January 3. The student loan interest rate will remain the same as last year at 1.7%, which is expected to reduce the financial burden on college students due to high interest rates and high prices.
Application and Loan Terms
Students can apply through the Korea Student Aid Foundation website (www.kosaf.go.kr) or mobile app. Tuition loans can be applied for until April 24 (Thursday), and living expenses loans (KRW 2 million per semester, KRW 4 million per year) can be applied for until May 20 (Tuesday).
General repayment student loans can be applied for by college students (undergraduate and graduate students) under 55 years of age regardless of income bracket, and the loan amount is repaid in installments. Repayment student loans after employment are for students within the student support bracket (9 brackets or lower for tuition loans), and repayment begins after a certain income is reached. In particular, the income standard for student loan repayment in the 2025 school year was set at 28.51 million won, up 6.42% from the previous year, which is expected to ease the burden on low-income young people.
Loan benefits and repayment terms
– General repayment student loan: Loan for the full amount of tuition and living expenses of up to 4 million won per year is possible. Repayment is made in the form of principal and interest or equal principal installments for up to 20 years.
– Student loan repayment after employment: Repayment begins when the income exceeds the standard after employment, and the loan conditions are the same: full tuition and living expenses of 4 million won per year.
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[Korean Today] Ministry of Education © Reporter Kim Mi-hee |
The Ministry of Education has been operating a student loan system since 2012, supporting students’ stable academic performance. Minister of Education Lee Ju-ho said, “We will help young people reduce their burden of student loans and become independent by maintaining low interest rates and increasing the income standard for repayment.” He also urged them to adhere to the loan application deadline so as not to miss out on the benefits.
The Ministry of Education and the Korea Student Aid Foundation plan to continue to expand policies that can provide practical help to university students in the future.
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