By Bae Ji-sook
Staff Reporter
From next year, some university students may be able to attend school on government loans to cover their fees, which they will pay back after graduation. The government will pay for their enrollment fees and collect the money back as direct deductions from their pay once they get a job.
Finance and Economy Minister and Vice Prime Minister Kwon O-kyu said Friday that this is part of government efforts to support students with low economic status.
However, he said the system will be initially applied only to those with good academic records or with high chances of getting employment, to prevent possible defaults. The benefit will be expanded to all students on a gradual basis.
Kwon said he has already reflected the plan in next year's budget. However, he neither specified how much money has been set aside for the plan nor when all students will be eligible for the program.
The decision was made upon recommendations from professors and politicians.
Earlier this year, a professors' union suggested the system as an alternative to ease economic polarization affecting education. The Democratic Labor Party presidential candidate Kwon Young-ghil also unveiled a similar plan as a campaign pledge.
The deferred payment system is similar to that of student loans in Western countries. In Australia, a student gets to pay back their loan when their annual income reaches 36,000 Australian dollars and the interest rate is linked to consumer price increases.
In the United States, nearly all students are eligible for student loans. They are offered a grace period of six months after graduation or if the borrower becomes a part-time student.
However, the financial resources for the plan are expected to hinder the program. Education Minister _ and also Vice Prime Minister _ Kim Shin-il said the program would cost too much at the moment. ``We need 12 trillion won a year, or 50 trillion won over four years for the program. I do not think this is feasible,'' he said.