Gyeonggi Province Begins Accepting Applications for Credit Recovery Support for Student Loan Long-Term Delinquents Starting March 3

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province will begin accepting applications for "Credit Recovery Support for Long-Term Student Loan Delinquents" starting April 3.

Gyeonggi Province's Credit Recovery Support Program for Long-Term Student Loan Delinquents is a project designed to support credit recovery for residents whose credit judgment information (formerly credit-delinquent status) has been registered due to student loans.

Last year, the province provided support of 175 million won to 457 residents.

Eligible recipients are Gyeonggi Province residents registered as continuous residents in the province for more than one year whose credit judgment information has been registered with Korea Credit Information Services due to student loans from Korea Scholarship Foundation.

Eligible recipients will be selected monthly, and upon selection, must enter into an installment repayment agreement with the Korea Scholarship Foundation.

An installment repayment agreement is a system that extends the repayment period to up to 20 years if approximately 5% of total debt (principal and interest combined) is paid in advance.

Typically, agreements are made within 10 years.

Once an installment repayment agreement is entered into, credit recovery benefits are provided, including deregistration of credit judgment information with Korea Credit Information Services, exemption from delinquency interest, and suspension of legal measures.

Additionally, the advantage is that the principal and interest can be repaid in installments over a long period, reducing the immediate repayment burden.

The province provides support for the initial payment (within 5% of repayment principal and interest) up to 1 million won for those who enter into an installment repayment agreement.

Applications can be made online (mobile) through the Gyeonggi Civil Affairs 24 website (gg24.gg.go.kr). When consenting to the sharing of administrative information, the resident registration certificate is automatically linked, allowing simple application without separate document submission.