SEOUL, Jun, 28 (Korea Bizwire) — The Seoul Metropolitan Government will join hands with the Korea Student Aid Foundation (KSAF) to help youth currently in credit delinquency resulting from student loans, by offering funds totaling 160 million won.
Those eligible for the bailout should be credit delinquents residing in Seoul or having graduated from a university in Seoul, between the ages of 19 and 34, and having been unable to pay back student loans from the KSAF for more than six months.
Seoul will be paying 5 percent of the total debts if those behind on their payments agree with the KSAF to repay the loan in installments.
Following this initiative, the KSAF will ask Korea Credit Information Services to restore good credit status for those who are currently delinquent.
However, in order for delinquents to fully recover their good standing, they must participate in a financial educational program at least once.
The total aid is expected to reach 160 million won, and the city hopes to help 200 to 250 people. This is the second time that Seoul’s local government has decided to help youth with student loan debts.
Last year, a total of 210 people received aid amounting to 135 million won. Interested parties can apply for credit relief via the city’s homepage from July 2 to September 28.
Kevin Lee (email@example.com)