College students' living expense loans increase amid soaring housing, food costs
"I make about 600,000 won ($440) a month from my part-time job at a cafe. Even with a little help from my parents, I can't cover my rent and living expenses," said Kim, a college student living in Seongbuk District, Seoul. "I've been asking my friends about income requirements and other eligibility criteria because I'm considering taking out a loan from the Korea Student Aid Foundation (KOSAF)…
College students in South Korea are increasingly relying on living expense loans to make ends meet, amid surging housing and food costs. These loans, provided by the Korea Student Aid Foundation (KOSAF), have seen a significant rise in both the amount and number of borrowers over the past two years.
Kim, a college student in Seongbuk District, Seoul, explained her situation, saying she earns about 600,000 won ($440) monthly from her part-time job and struggles to cover rent and living expenses despite her parents' assistance. Kim has been researching the eligibility criteria for KOSAF loans, as she plans to apply next semester.
The trend of college students taking out living expense loans is on the rise, with KOSAF extending loans totaling 850.6 billion won ($626.5 million) in 2025, a 32.8 percent increase compared to 640.67 billion won in 2023. The number of loans also grew from 432,171 to 457,129 during the same period.
These loans are intended to offer students accessible financing for their living expenses. However, the rising number of borrowers and overdue balances highlight the growing financial challenges faced by many students in South Korea.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
