Types of Loans

KOSAF loans vary by type, but they share a common characteristic of having built-in repayment support for borrowers and, taken together, having selection criteria that aim to provide student aid for students from a wide range of backgrounds.

AT A GLANCE

AT A GLANCE 1
MAIN PROGRAMS ELIGIBILTY DETAILS
Income Contingent Loan (ICL)
This reduced-interest loan is for students from low-income families that may be used for tuition and qualifying education-related costs. ICLs are not subject to credit approval. The income contingent repayment system gives students flexibility of choosing repayment options that best suit their personal circumstances.
- Undergraduate
- Below age of 35
- Family Income Level of 8 or lower (if the student has 2 or more siblings, the Family Income Level does not matter.)
- Enrolled students should have completed 12 or more credits and have a grade of 70 or higher out of 100 in the previous semester.
- Full tuition & fees
- Living expenses up to 3M KRW per year
- Floating interest rate of 2.7% starting the fall semester in 2015.
- Borrowers who demonstrated financial need may be exempt from interest on loans for living expenses until they start repaying the loans.
Direct Loan (DL)
This loan is for students from families of any income level that may be applied towards tuition and qualifying education-related costs. Borrowers may be eligible for interest relief. DLs are subject to credit approval. The standard repayment system offers a borrower a grace period, followed by a repayment period—each up to 10 years.
- Undergraduate or graduate
- Family Income Level of 9 or higher(Students from households with 3 or more children may apply for ICL instead.)
- Below age of 55
- Enrolled students should have completed 12 or more credits and have a grade of 70 or higher out of 100 in the previous semester.
- Between 40~90M KRW and not exceeding tuition, plus living expenses up to 2M KRW per year.
- Fixed interest rate of 2.7% as of 2015.
Loan for Rural Students (LRS)
This no-interest loan aims to give opportunities for higher education to students from farming and fishing communities. Loans may be applied towards tuition and qualifying school fees.
- Students whose parents lived and worked in fishing and farming communities for more than 6 months or students working in such communities
- Enrolled students should have completed 12 or more credits and have a grade of 70 or higher out of 100 in the previous semester.
- Full tuition & fees.
- No interest (subsidized by the government)
AT A GLANCE 2
VARIATIONS INTEREST RATE Eligibility
Living Expense Loan (during study)
Borrowers who qualify for the ICL or the DL may apply. May receive loan on its own or in combination with other student loans.
ICL: 2.5%, Changes per semester
DL: Fixed at 2.5%
ICL : Undergraduate
DL : Undergraduate, Graduate
Transition Loan (from DL to ICL)
Students who previously received DL loans but have become qualified for ICL may convert their loans from DL to ICL.
N/A Undergraduate
KOSAF Loan Conversion Plan
In 2014, KOSAF introduced the "KOSAF Loan Conversion Plan" in which borrowers can convert relatively high-interest loans (Fall 2005 to Spring 2009) and direct loans (Fall 2009) to low-interest loans.
2.7% Previous borrowers with outstanding student loan balance
IN THIS SECTION
Grants & Scholarships
Types of Grants & Scholarships
Application and Disbursement
Student Loans
Types of Student Loans
Application Process and Repayment
Sharing & Volunteering
Types of Volunteer Programs
RELATED SITES
Cheong Wa Dae, Office of the President
Government of the Republic of Korea
Ministry of Education
Education, Culture, Sports & Tourism Committee
The National Assembly of the Republic Korea
The National Assembly of the Republic of Korea
Ministry of Strategy and Finance
SEE ALSO
Download relevant legal texts
  • LINK
  • PRINT