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Over 258,000
students benefit from loan scheme in fall 2006
News Source : Ministry of
Education & Human Resources Development
Seoul, Oct 11 2006 (Korea Newswire)--
A total of 258,439 students received government-guaranteed
loans equivalent to 793 billion KRW in the fall semester of
2006, according to the Ministry of Education and the Korea
Housing Finance Corporation, the organization commissioned
to oversee the loan scheme's operation and management.
The number marks a 42 percent increase compared to the
second half of 2005. In particular, records show that 54.1
percent of the total loan borrowers came from households in
the bottom 30 percent of gross household income. The
long-term low-interest loan program is certainly proving
effective in supporting students from low-income families
and alleviating income polarization.
A fixed interest rate of 6.84 percent will be applied during
the maximum loan term of 20 years, which covers a ten-year
repayment and ten-year grace period. The ministry will give
priority to needy students, regardless of their parents'
credit rating. For example, 31,142 science & engineering
students from low-income backgrounds will be granted
no-interest benefits this semester.
To ensure efficiency, the Student Credit Survey System,
established this May, will be mobilized in limiting loans to
borrowers of high credit risk and frequent delinquents.
