Parliament passes delayed student loan bill

By Tony Chang
SEOUL, Jan. 18 (Yonhap) -- The National Assembly on Monday passed a bill designed
to assist poor college students cover their tuition payments, amid growing
criticism that lawmakers neglected "low-income people-friendly" bills as they
clashed over a slew of government sponsored initiatives.

The Assembly, currently in recess, convened a special plenary session and passed
the government's so-called Income Contingent Loan (ICL) system, which will allow
students to take out state guaranteed college loans that do not have to be repaid
until after graduation.
Under the system, borrowers would be allowed to repay principal and interest in
installments after gaining employment and securing a regular income, thus
eliminating the possibility of defaults.
The government is obliged to conduct a probe into the debtor's financial
condition if he or she is unable to redeem any part of the debt within three
years of graduation, with the probe to be conducted every three years if the
situation continues.
The bill had been languishing at the National Assembly since the government
submitted it in November after first announcing the plan in July of last year.
It is expected to go into effect in the spring semester of this year which starts
in March. The government anticipates that as many as 1 million students will
benefit from the system.
The move comes as part of Lee's drive for a more "centrist pragmatism" in the
state's policies, focusing on social cohesion and increased support for
low-income and underprivileged citizens.
Approval of the bill marked a rare moment of unity at the National Assembly amid
clashes between rival parties over the government's 2010 budget in late December
and more recently its plan to transform a new city in the center of the country
into a "business and science hub."
President Lee Myung-bak lamented in early January the National Assembly's delay
in passing the bill, describing it as a setback for his "low-income
people-friendly" policy. He also asked a group of university chiefs to refrain
from increasing tuition fees this year in consideration of continuing economic
difficulties.
odissy@yna.co.kr
(END)

Delete & Prev | Delete & Next