The education ministry will give more people extra time to repay their student loans while doubling the number of university students who can receive interest-free loans, officials said.
Starting this fiscal year, 100,000 borrowers will be allowed to postpone repayment of the loans from the Japan Student Services Organization (JASSO) for up to five years, 2।5 times the current 40,000, they said.
The Ministry of Education, Culture, Sports, Science and Technology made the decision because it expects more graduates will face difficulties repaying their debts amid the current recession, they said।
The number of students who can borrow the interest-free emergency loans from JASSO will double to 8,000। The measure will be taken, for example, to help students whose parents have lost their jobs.
During this fiscal year, JASSO will lend 947।5 billion yen to 1.15 million students, including those at two-year junior colleges.
After the students graduate, they are given grace periods to repay their debts in cases of disease, disasters and financial difficulties, such as job losses or low incomes।
About 40,000 people were granted grace periods in fiscal 2007 due to financial difficulties. The figure is expected to be almost the same for fiscal 2008, which ended in March.
In light of the economic slump, the ministry decided to increase the number of people eligible for the grace periods to 100,000।
The ministry earmarked 1 billion yen in the supplementary budget plan for this fiscal year as loans to JASSO to cover the increase in nonpayments।
For most of JASSO's loans, students apply before or immediately after entering college or university. But they can apply at any time for emergency loans, including interest-free ones.
The ministry, expecting soaring demand for interest-free loans, decided to increase the number of students who can receive these loans to 8,000।
Interest-free loans are financed by tax money। The ministry earmarked 1.5 billion yen in the supplementary budget plan for the increase in lending.(IHT/Asahi: May 9,2009)
http://www.asahi.com/english/Herald-asahi/TKY200905090065.html
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