On the 30th, Han Dong-hoon, a candidate for the People Power Party presidential primary, announced a pledge centered on raising the income threshold for the repayment obligation of student loans and encouraging corporations to make repayments on behalf of borrowers, titled "We will wait for you to grow."
First, he stated that the income threshold for the repayment obligation of student loans will be raised from the current monthly salary of 2,370,000 won to around 3,000,000 won. This aims to significantly reduce the repayment burden for low-income young job seekers, enabling the younger generation to "save more" and "start stronger."
According to the Office for Government Policy Coordination (2024 Youth Life Survey), the average monthly living expenses for young households amount to 2,130,000 won. In contrast, the current income threshold for mandatory student loan repayment is just 2,370,000 won, exacerbating the financial struggles of the younger generation.
He also mentioned the introduction of a "corporate repayment system," which allows corporations to repay student loans on behalf of borrowers. By providing significant incentives such as corporate tax reductions to encourage voluntary participation from corporations, the government aims to secure stability in student loan repayments, ease the repayment burden for young borrowers, and create a cooperative system where corporations can secure talent.
Additionally, a new "repayment vacation system" will be established, allowing borrowers to defer student loan repayments for up to 12 months without conditions. Under the current system, repayment deferral options can only be used in specific circumstances such as unemployment, disaster, or illness, making it difficult to utilize even in times of financial hardship.
Han noted, "As inflation continues to rise, living expenses are increasing, and the burden of student loans is significant for job seekers and young individuals who have just started working," adding that "defaults and arrears on student loans have rapidly increased, reaching 191.3 billion won just in the past year."
He emphasized, "Since the student loans were given to allow young people to study without worry, it is now a time that requires patience to wait for them to grow further."