With the second application round for the 2026 academic year second-semester National Scholarship closing on September 9, the government support channel available to ease tuition burdens this semester has narrowed to student loans. The Ministry of Education and the Korea Scholarship Foundation will accept student loan applications for the second semester of the 2026 academic year until November 17. Applications opened on July 1, and as of October 9, 39 days remain until the deadline.

■ Who can borrow and for what under student loans Student loans are a tuition support program for new and current students at universities (including graduate schools) and at educational training institutions offering accredited courses under the Academic Credit Bank System. Eligible loan funds are divided into tuition and living expenses. Tuition consists of admission fees and class fees as notified by the school, and does not include dormitory fees. Living expenses cover costs such as room and board, textbook purchases, and transportation needed for stable living during study. However, loans for Academic Credit Bank System learners and for students from rural areas at universities (graduate schools) do not include living expense loans.

■ Interest rate frozen at 1.7%... individual lifetime cap first applied to living expense loans The loan interest rate for this semester has been frozen at 1.7%. Instead, starting from the second semester, an individual lifetime cap will newly apply to living expense loans. The system sets a total limit on living expense loans based on the standard semesters for each academic program plus four additional semesters, a measure aimed at preventing long-term accumulation of living expense debt.

■ Repayment methods differ by loan type Repayment methods vary depending on the loan type. · Income-contingent repayment student loans: Borrowers must repay a set amount when their annual income exceeds the income repayment threshold or when they acquire property through inheritance or gift. · General repayment student loans: Borrowers pay only interest during the grace period, then repay principal and interest together during the repayment period. · Student loans for rural-origin university (graduate school) students: Principal is repaid in equal installments within the maximum period allowed by each condition. · Student loans for Academic Credit Bank System learners: Principal and interest are repaid within a maximum grace period of 8 years and a repayment period of 10 years.

The scope of interest exemptions for income-contingent repayment student loans has also been expanded. Previously limited to students up to scholarship support bracket 5, the exemption will extend to bracket 6, and for students at regional universities it is set to expand to bracket 8.

■ AI study incentive student loan launched for the first time... checking major and eligible departments essential This semester marks the first implementation of the AI study incentive student loan. It is a product that supports costs for artificial intelligence studies at a low interest rate, with the income-contingent repayment method applied. Eligible recipients are undergraduates in designated departments at AI- and software-centered universities and at universities participating in the AI hub university project that have agreements on income-contingent repayment loans with the Ministry of Education or the Korea Scholarship Foundation. Eligible departments are designated by each selected university according to its own criteria, so even departments with the same name may or may not be included depending on the school.

Points to note are as follows. · Primary major requirement: Students pursuing a double major or minor who only take classes in eligible departments cannot receive the loan. · Timing of disbursement: The loan is disbursed only after tuition payment is confirmed, and pre-payment before registration, as with priority living expense loans, is not permitted. · Concurrent use possible: As a separate product from existing tuition and living expense loans, it can be used alongside them if requirements are met; applications are filed simultaneously through the general or income-contingent repayment loan application screens. · Post-application obligations: Applicants must complete procedures such as submitting a faithful use plan within the specified period. If a borrower transfers to a non-eligible department after loan disbursement, the full loan amount must be repaid, and any interest accrued in the interim is borne by the student.

■ Students who did not apply for the National Scholarship must first check 'support bracket determination' Whether one applied for the National Scholarship is also linked to student loans. Eligibility and interest exemptions for income-contingent repayment loans are determined based on the scholarship support bracket, which is calculated during the National Scholarship application process.

According to university guidance, bracket determination takes about eight weeks. The Korea Scholarship Foundation also recommends that those wishing to take out income-contingent repayment living expense loans apply about eight weeks before their university's registration deadline. The remaining 39 days is 17 days shorter than eight weeks (56 days). This means that students who did not apply for the second-semester National Scholarship and have no determined support bracket may have their determination completed after the loan application deadline. How cases determined after the deadline will be handled is not clear from published guidance alone, and individual confirmation through the Korea Scholarship Foundation's counseling center is necessary.

■ Five variables to check now 1. November 17 is the application deadline for tuition, living expense, and AI study incentive loans alike. 2. Those seeking income-contingent repayment should first confirm whether their scholarship support bracket has been determined. 3. For AI study incentive loans, the key factors are the university's list of designated departments and whether the primary major requirement is met. 4. With the introduction of the individual lifetime cap on living expense loans, students should assess how many remaining semesters of living expense loans they can take out. 5. The Ministry of Education has announced plans to reorganize the scholarship support bracket system into five brackets starting in 2027, but the detailed criteria for the National Scholarship and student loans, as well as the application schedule for the first semester of the 2027 academic year, have not yet been officially confirmed.

[This article was written based on official guidance from the Ministry of Education, the Korea Scholarship Foundation, and universities. Loan interest rates, limits, eligibility, and application schedules may change according to government policy and foundation operating standards. Before applying, the latest standards should be confirmed through the Korea Scholarship Foundation website or counseling center. AI assisted with this article.]