Hello, everyone! I guess many of you may have heard about the household debt problem in Korea. And what’s more? Government response to it through ‘Microfinance’. So, today I would like to bring this issue up, specifically microfinance for the young.
Do you guys know anyone suffering from student loans? Well, I have a few friends who are suffering from student loans. And actually there are many university students in Korea struggling to pay their university tuition fees. Now, I will tell you a story about one of my friends who is having a hard time enjoying her school life due to the pressure of student loans.
My friend is a 23-year-old university student. Her parents retired, so they cannot afford her tuition fee. So she had no choice but to resort to student loans. The problem is the high interest rate for the loan. The interest rate is much higher than that of other standard loans, since she does not have good credit rating as a low-income household. To pay the interest as well as to cover her living expenses, she has to spend most of her time doing a part-time job. What’s worse is she will be still under the pressure of paying the principal after her graduation. That’s too heavy burden for her, and it sounds so hopeless.
Isn’t there any way to get out of this hopeless scenario? Yes, there is an answer. That’s microfinance programs for young people. ‘Transfer Loan’ was introduced by FSC a few months ago. The receipient of this loan can transfer a high interest rate loan to a lower interest rate loan, and hence the pressure of payment can be eased a lot. To promote this program, FSC is planning to install a service booth in some university campuses. This will help students get advice about the loan. You may find a booth in your campus. If you find it, why don’t you bring your friends suffering from the student loan? I will tell my friends this excellent financial progam right away!