Income Contingent Loan (ICL)
Students who meet certain criteria may apply for the ICL. ICLs offer only to those who attend universities that have agreement with KOSAF to offer ICL loans. Students do not qualify for this loan program if they are in a graduate school, continuing an education program through an academic credit bank system, or attending a school outside of Korea.
ICLs must be used for cost of attendance, which includes tuition & fees, room & board, books, supplies, and other living expenses. ICL offers full coverage of tuition & fees and maximum of KRW 1.5 million per semester for living expenses.
Under the income contingent repayment system, a borrower does not have to pay the loan principal amount or interest until he or she has income above a certain minimum threshold level for repayment.
Direct Loan (DL)
Both undergraduate and graduate students under the age of 55, regardless of their household income levels may apply, as long as they maintain minimum grades (70 out of 100%). Loans are subject to credit approval.
DLs must be used for cost of attendance, which includes tuition & fees, room & board, books, supplies, and other living expenses. Depending on the type of school (i.e., undergraduate, postgraduate, specialized, etc), the upper limit of the amount borrowed ranges from KRW 40 million to KRW 90 million. A maximum of KRW 1.5 million per semester may be borrowed as living expenses.
The repayment system offers a borrower grace period of 10 years or less during which only the interest on the loan needs to be paid. After the grace period, the borrower is given up to 10 years to pay off the loan principal And interest.
Loan for Rural Students (LRS)
This no-interest loan is funded and guaranteed by the government.
Undergraduate students of all grades and any Family Income Level, whose parents and guardians have lived at a permanent address in an agriculture and fisheries community area for more than 6 months(180 days) and/or students who have been making a living in the agriculture and fisheries industry for more than 6 months, are eligible. Students from households with three or more children may be given priority. Satisfactory academic performance is also part of the eligibility criteria.
LRS must be used for tuition & fees (living expenses are excluded). A student who wishes to take out a loan for living expenses may apply for the Living Expense Loan offered by ICL and DL. LRS offers full coverage of tuition & fees and may not exceed the recipient’s financial need.