The goverment said yesterday it would reduce interest on tuition loans at universities to help ease the financial burden on students and their families.
According to officials at the Ministry of Strategy and Finance, the government will lower the annual rates on student loans to an upper 5 percent range in the second half form the current average of 7.3 percents.
The funds to support college students will be raised through bond sales by the Korea Student Aid Foundation.
The KSAF plans to hold an investor relations conference and issue related bonds within this month, officials said.
The goverment has allocated 130 billion won for the KSAF's support for university students this year. Next year, the budget wil be doubled to 260 billion won to support 700,000 students, they said.
Korean public university students have to pay an average of 4.16 million won for the 2009 tuition, and private university students 7.42 million won, according to data by the Ministry of Education, Science and Technology.
The goverment's move to support students came as Finance Minister Yoon Jeung-huyn had vowed at a forum on Monday to expand state support for low-income university students in the second half.
Those who are in the lowest three brackets out of the seven household income brackets or people with annual income less than 23.8 million won, will be able to take tuituin loans at a 0 percent interest rate in the second half, goverment officials said.
To date, only those in the lowest two brackets, or people with annual income less than 18.1 million won were eligible for the interest-free loans.
Under the new measures, thoose in the highest two brackets will get 1.5 percent age point goverment support in theri tuition interest rates and those in the third and fourth brackets will get 4 percentage points goverment support.
According to officials at the Ministry of Strategy and Finance, the government will lower the annual rates on student loans to an upper 5 percent range in the second half form the current average of 7.3 percents.
The funds to support college students will be raised through bond sales by the Korea Student Aid Foundation.
The KSAF plans to hold an investor relations conference and issue related bonds within this month, officials said.
The goverment has allocated 130 billion won for the KSAF's support for university students this year. Next year, the budget wil be doubled to 260 billion won to support 700,000 students, they said.
Korean public university students have to pay an average of 4.16 million won for the 2009 tuition, and private university students 7.42 million won, according to data by the Ministry of Education, Science and Technology.
The goverment's move to support students came as Finance Minister Yoon Jeung-huyn had vowed at a forum on Monday to expand state support for low-income university students in the second half.
Those who are in the lowest three brackets out of the seven household income brackets or people with annual income less than 23.8 million won, will be able to take tuituin loans at a 0 percent interest rate in the second half, goverment officials said.
To date, only those in the lowest two brackets, or people with annual income less than 18.1 million won were eligible for the interest-free loans.
Under the new measures, thoose in the highest two brackets will get 1.5 percent age point goverment support in theri tuition interest rates and those in the third and fourth brackets will get 4 percentage points goverment support.
- THURSDAY JUNE 18, 2009 -