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| ▲ The ruling People Power Party's top policy maker, Rep. Park Dae-chul (L) is seen speaking at a meeting to discuss tuition loan support measures for vulnerable students at the National Assembly on June 13, 2023. (Yonhap) |
PPP-school tuition
PPP, gov't to change revised bill on interest deferral for student loans
SEOUL, June 13 (Yonhap) -- The People Power Party (PPP) and the government agreed Tuesday to reduce the number of students eligible for the government's student loan interest deferrals, saying the bill, which the main opposition unilaterally passed last month, is populist and ineffective.
In May, the Democratic Party unilaterally passed a revised bill at the education committee, which aims to exempt all students in the bottom 80 percent of the income distribution from paying interest on their university tuition loans until they earn enough income and are able to start paying back the borrowed amount.
Interest accrued when the borrower defers repayment due to factors such as parental leave, job loss, business closure or in the event of a disaster, are also exempted under the bill.
"The PPP and the government shared the view that the revision to the special law on repayment of school loans after employment is a populist policy," said Rep. Park Dae-chul of the PPP at a meeting to discuss government support measures for students from financially vulnerable households.
While the revision would cost the government some 86 billion won (US$67.1 million) in taxes annually, the government and the ruling party agreed that such a plan would not offer practical support to students from financially vulnerable backgrounds to continue studying, Park said.
Instead, they agreed to reduce the number of students eligible for such benefits to those from households earning less than 100 percent of the median income, while substantially increasing the amount of tuition support to students from low-income households.
The PPP and the government will also increase financial support for students of middle income, expand the number of recipients of the government's working scholarship and increase the cap on low-interest loans for living expenses.
The ruling party will announce the detailed amount soon and vowed to make efforts to reflect such plans in next year's budget planning, Park said.
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