Types of Loans
AT A GLANCE
(As of January, 2021)
| Classification | Income Contingent Loan(ICL) | Direct Loan(DL) | Loan for Rural Students(LRS) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Qualification for application | Age | Under the age of 35* | Under the age of 55** | N/A | |||||||||
| Target | Possible | Undergraduate students of domestic higher education institution whose university has convention on the ICL | Undergraduate and graduate of domestic higher education institution*** | Undergraduate students of domestic higher education institution | |||||||||
| mpossible | - Academic credit bank system, Foreign university | ||||||||||||
| Grade Standard |
- 70/100 grades, 12 credits* or more in the previous semester · However, if the minimum credit per semester is less than 12, we follow the university’s bachelor rules · Disapproval of academic credit bank system [Exception standard of grade and credit]
※ If students are eligible for redundancy, we apply advantageous standard |
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| Graduate Student | Disqualified | Qualified | Disqualified | ||||||||||
| Credit Requirement | N/A | Exclude students who have default(including overdue), distressed-debt, information of credit rate, public information | Exclude students who have default(including overdue), distressed-debt, information of credit rate, public information | ||||||||||
| Financial Aid Section | Undergraduate: recipient of basic living, Near poverty group, 1∼8 supporting section ※ Undergraduate from multichild Family (more than 3) is irrelevant with supporting section |
Undergraduate, Graduate: Irrelevant with supporting section | - farmer, fisherman: Irrelevant with supporting section - Non farmer, fisherman: Under 8 supporting section ※ vulnerable class family and multi-child Family(more than 3) is irrelevant with supporting section |
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| Resident Requirement | N/A | N/A | - Students whose parents lived and worked in fishing and farming communities for more than 6 months or students working in such communities | ||||||||||
| Living expense Loan | Loanable Amount | Maximum KRW 1.5 million, minimum KRW 100,000 (Unit: KRW 50,000) |
Available for DL and ICL | ||||||||||
| ※ However, in the case of student* who will enroll university before paying tuition fees, the amount limit is KRW 500,000 and the number limit is only one time, and the remaining amount can be executed after registration (If student do not enroll the university after having loan, they must return it in full, and if they don’t, future loans may be limited) * Students who are registered of bachelor’s information and financial supporting section in their university(Including storage direction if pre-approved) |
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| Student Loan | Loanable Amount | Upper | Full tuition (Entrance fee, tuition, etc.) |
- Full tuition (Entrance fee, tuition, etc.) However, there are total tuition loan limit by borrower’s higher education institution (based on balance) · University (including college): KRW 40 million · 5th and 6th year college and general and special graduate school: KRW 60 million · medical, dental and oriental medical university and graduate school: KRW 90 million |
Full tuition (Entrance fee, tuition, etc.) |
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| Lower | Tuition fee: more than KRW 100,000 However, installment-based tuition loans are more than KRW 10,000 per time |
Tuition fee: more than KRW 100,000 (Entrance fee, Tuition fee) |
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| How to repay | Compulsory reimbursement (reimbursement through the IRS) or voluntary reimbursement stipulated by the IRS if income occurs for more than a certain period of time after employment | - the term of loan(interest payment): Up to 10 years per condition - Repayment period(interest+principal payment): Up to 10 years ※ However, depending on the age of the applicant, the maximum length of the loan period is limited |
○ Loan before 1st semester of 2018 ○ Loan after 2nd semester of 2018 |
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| Support for Living expense Loan Interest | For recipient of basic living, Near poverty group, under 4 supporting section, ICL interest is free before compulsory repayment starts (However, there’s no interest support to those who hold the balance of the student loan after employment at the time of implementation of the living expenses loan) |
N/A | |||||||||||
| How to give loan | If students choose from an approved loan system and apply, we give it to their university’s account However, we give the cost of living directly to student’s account |
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* undergraduate students who enrolled in the college contract major(Employment conditions type only) can apply for ICL till the age of 45
- Also, university selected as a support project for the lifelong education system support projects, special type of incumbent student, and students who take courses of advancement of bachelor’s degree under the age of 45, 1) pre-employment post-learner or 2) small and medium sized businesses employees can use ICL(Income Contingent Loan).
** Students who enter college before the age of 55 and continue their studies without interruption, they can apply for a Direct loan until the age of 59 (They can apply loan at the age of 55 and enter the same semester at the age of 56 and continue their study, however, they’re not eligible to apply loan after completing their degree)
*** Domestic higher education institutions include universities, industrial universities, educational universities, colleges, cyber universities, technical colleges, and various universities in accordance with Article 2 of the Higher Education Act
※ In principle, it is based on utilizing the financial aid section information as of the date of loan examination
- IN THIS SECTION
- Grants & Scholarships
- Types of Grants & Scholarships
- Application and Disbursement
- Student Loans
- Types of Student Loans
- Application Process and Repayment
- Sharing & Volunteering
- Types of Volunteer Programs
- RELATED SITES
- Cheong Wa Dae, Office of the President
- Government of the Republic of Korea
- Ministry of Education
- Education, Culture, Sports & Tourism Committee
- The National Assembly of the Republic Korea
- The National Assembly of the Republic of Korea
- Ministry of Strategy and Finance
- SEE ALSO
- Download relevant legal texts
