South Korean student living expense loans reach 850.6 billion won

Student living expense loans provided by the Korea Student Aid Foundation have increased significantly, reaching 850.6 billion won in 2025. This represents a 32.8% rise over a two-year period starting from 2023.

Low-income groups have seen a substantial increase in borrowing. For instance, loans for those in the lowest income brackets and the near-poverty group rose by over 30% during the same period. The increase is not limited to low-income students, as higher income brackets also showed rising loan amounts.

Accompanying the rise in borrowing is a 31.1% increase in loan delinquency balances over the last two years. As the scale of debt grows, the bad debt provisions set by the Korea Student Aid Foundation have also risen by 11% since 2023. Lawmaker Kang Kyung-sook has called for more precise research into youth debt structures and the establishment of a comprehensive support system for students facing delinquency.