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Support for Student Loan Recovery: Seoul's 2025 Initiative

Support for Student Loan Recovery: Seoul's 2025 Initiative

Seoul Metropolitan Government has launched a comprehensive initiative aimed at supporting young people struggling with student loan debt and credit issues. Starting from October 10, 2025, eligible individuals aged 19-39 can apply for the Student Loan Interest and Credit Recovery Support Project. This program is designed to alleviate the financial burdens of student loan interest, with plans to assist 39,000 applicants this year. The initiative includes interest support for loans taken from the Korea Scholarship Foundation, covering interest accrued from July to December of the previous year. Additionally, young people classified as credit delinquents can benefit from a credit recovery program, which involves signing a repayment agreement and receiving assistance with the initial deposit. The city also offers emergency living stabilization loans to those facing economic hardships, allowing them to borrow up to 15 million won at a low-interest rate. This multi-faceted approach aims to ensure that young individuals can focus on their futures without the weight of financial distress.

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