Uiwang City and Korea Student Aid Foundation Support Credit Recovery for Young Adults Struggling with Student Loans

[Suwon Ilbo=Reporter Seo Dong-young] Uiwang City and the Korea Student Aid Foundation have launched an initiative to support young adults who have become creditworthy individuals (credit delinquents) due to unpaid student loans.

Uiwang Mayor Kim Sang-don and Korea Student Aid Foundation Executive Director Jo Sung-chul signed a business agreement on the 11th at the City Hall reception room to support credit recovery for young adults with long-term student loan arrears.

The city signed the agreement to establish a support system that allows young adults facing difficulties at the entry stage into society to get back on their feet.

According to the agreement, the city will provide initial down payment support equivalent to 10% of the debt for installment payment agreements for young adults registered as creditworthy individuals due to unpaid student loans. The Korea Student Aid Foundation will provide support including deletion of credit warning registration information, up to 20-year installment payment arrangements, full waiver of overdue interest, and suspension of legal measures such as provisional attachments.

As of the end of last year, 32 young adults aged 39 or younger in Uiwang are registered as creditworthy individuals due to student loans. The total debt amounts to 313 million won. The average debt per person is 980,000 won.

The city will allocate 7 million won in project budget from the first supplementary budget of this year. The plan is to provide benefits to seven young adults aged 19 to 39 who have resided in Uiwang for at least one year and are registered as creditworthy individuals with six months or more of long-term delinquency on student loans from the Korea Student Aid Foundation.

Mayor Kim Sang-don stated, "This project is the most necessary initiative for young adults facing difficulties in job hunting due to economic and social conditions beyond their own capabilities," and added, "We must make every effort in publicity to ensure young adults do not miss benefits due to lack of awareness."

He further said, "Young adults are the future of our society and the driving force of our times," and pledged, "Going forward, the city will implement youth policies that help young adults overcome difficulties and smile."