Students are struggling to repay their college loans, with an astounding 661 billion won left unpaid last year. Among the 318,000 borrowers, 51,000 failed to repay on time, marking a significant increase from 27,000 in 2019. The situation was highlighted by lawmaker Choi Kisang, who revealed that the total amount owed by borrowers has risen to 4.037 trillion won, with 93,000 more borrowers added in 2020 compared to 2019.
The number of borrowers who postponed repayment due to economic challenges has surged, leading to an 89% increase in defaulters, whose total debt amounts to 661 billion won. The default rate soared to 16.5% in 2020 from 12.3% in 2019, showing the worsening financial conditions faced by young adults. Additionally, the number of borrowers starting mandatory repayments based on income reduced to a record low of 71,901 in 2021, indicating the impact of COVID-19 on job opportunities.
Amidst these challenges, lawmaker Choi emphasized the need for policies like repayment deferments to alleviate the economic burden on young people. As the government faces revenue cuts due to tax breaks for the wealthy, it is crucial to address the financial distress faced by the younger generation.
[By Um Ji-won, Reporter, umkija@hani.co.kr]
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