Loans Students stuff fine
They say the amount of the fine is as much as one semester's tuition and that imposing such a big fine runs counter to the stated purpose of introducing student loans. This is aimed at helping ease the financial burden on the students at a time when colleges and universities are competing to raise tuition.
College loans are one of the key initiatives from the government for the purpose of making college education affordable.
Students are complaining after the education ministry announced that those who fail to repay loans will face a fine of 5 million won.The student loans are set to carry an annual interest rate of 5.7 percent, which is already drawing complaints from students as being too stiff. A repayment plan requires students to repay a minimum 30,000 won per month. Those who lose their jobs will still have to pay the amount until the tax agency acknowledges their no-income status.
The indebted students are required to report their and their families' financial status annually to the National Tax Service to have the loans readjusted.
Those planning to go abroad for more than one year must pay back all the money in advance and report their status to the Ministry of Foreign Affairs and Trade.
Those who do not abide by the rules will not be permitted to leave the country.
Freshmen-to-be have until Thursday to apply for the loans and other students by March 18.
The Internet is abuzz with postings on the situation with most of them being negative.
"Of course people need to repay the debts and harsh regulation is needed for those borrowing money that comes from taxpayers. But a 5 million won fine is simply too much," an Internet user said.
"I would have reseravations if my children want to apply for the loan. I don't want them to start their lives as credit delinquents," said 47-year-old Hahn Yune-young, a mother of two children.
According to Job Korea's survey of 1,179 university seniors, 90.8 percent said they are under pressure to repay loans and about 80.8 percent said they have applied for jobs solely for the aim of paying off loans.
remended for college loans
They say the amount of the fine is as much as one semester's tuition and that imposing such a big fine runs counter to the stated purpose of introducing student loans. This is aimed at helping ease the financial burden on the students at a time when colleges and universities are competing to raise tuition.
College loans are one of the key initiatives from the government for the purpose of making college education affordable.
Students are complaining after the education ministry announced that those who fail to repay loans will face a fine of 5 million won.The student loans are set to carry an annual interest rate of 5.7 percent, which is already drawing complaints from students as being too stiff. A repayment plan requires students to repay a minimum 30,000 won per month. Those who lose their jobs will still have to pay the amount until the tax agency acknowledges their no-income status.
The indebted students are required to report their and their families' financial status annually to the National Tax Service to have the loans readjusted.
Those planning to go abroad for more than one year must pay back all the money in advance and report their status to the Ministry of Foreign Affairs and Trade.
Those who do not abide by the rules will not be permitted to leave the country.
Freshmen-to-be have until Thursday to apply for the loans and other students by March 18.
The Internet is abuzz with postings on the situation with most of them being negative.
"Of course people need to repay the debts and harsh regulation is needed for those borrowing money that comes from taxpayers. But a 5 million won fine is simply too much," an Internet user said.
"I would have reseravations if my children want to apply for the loan. I don't want them to start their lives as credit delinquents," said 47-year-old Hahn Yune-young, a mother of two children.
According to Job Korea's survey of 1,179 university seniors, 90.8 percent said they are under pressure to repay loans and about 80.8 percent said they have applied for jobs solely for the aim of paying off loans.
remended for college loans
thanks for information
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