Korea's Student Loan Interest Relief — How Much Do You Save a Year?
Korea's Income-Contingent Loan (ICL) accrues interest continuously while you're enrolled and during repayment deferral. To ease the burden on lower-income borrowers, the government applies interest relief that varies by income tier.
Borrowers in income tiers 1–3 (basic livelihood and near-poverty households) get full interest exemption; tiers 4–6 get a 50% reduction; tier 7 and above pay the standard base rate with no relief. The base rate is posted each semester and typically runs in the high-1% range.
This calculator estimates your annual interest savings and net interest based on your income tier and loan balance. Actual eligibility and rates depend on the Korea Student Aid Foundation's semester announcements — check their website for confirmation.
Frequently Asked Questions
This calculator assumes a base rate of 1.7% per year for Korea's Income-Contingent Loan (ICL). The actual posted rate can change each semester.
The Korea Student Aid Foundation calculates it each semester based on household income — check your tier on their website.