(Sejong = News1) Reporter Sim Seo-hyun: The National Tax Service announced on the 20th that it has finalized 190,000 individuals who are subject to mandatory repayment of student loans after employment for last year’s earned income. The repayment notices will be sent out on the 22nd.
Loan recipients notified must pay 20% (undergraduate loans) or 25% (graduate loans) of the amount exceeding the repayment threshold income (18.98 million KRW, equivalent to a total salary of 28.51 million KRW). However, any amount voluntarily repaid to the Korea Student Aid Foundation will be deducted from this amount.
Loan recipients who have applied for electronic delivery will receive the notification via mobile, while others can access it by mail or on the “Post-Employment Student Loan Repayment” website.
Upon receiving the notification, borrowers can choose between prepayment and withholding, depending on their financial situation.
If a borrower does not want the amount to be deducted by their employer, they may opt to pay the mandatory repayment amount in advance themselves. They can either pay 100% by the end of June or make two payments, 50% each by the end of June and December.
Additionally, if the borrower pays the full amount or 50% by June 1st, and the remaining 50% by November 30th, no withholding notification will be sent to the employer.
If prepayment is not made, the employer will withhold 1/12 of the mandatory repayment amount from the monthly salary over the next year (from July this year to July next year).
Borrowers without a withholding obligation or with a mandatory repayment amount of less than 360,000 KRW must pay according to the “Mandatory Repayment Notification” by the payment deadline (June 30th next year).
If a borrower re-employs, the remaining repayment amount, after deducting the amount already repaid, will be notified to the new employer for withholding.
In cases of unemployment, resignation, childcare leave, or for borrowers in school, a deferment of the notified repayment can be requested.
The deferment period is two years for economic difficulties due to unemployment and four years for those enrolled in graduate school.
If the total of last year’s other income does not exceed the repayment threshold, making economic conditions difficult due to unemployment, the borrower is eligible for deferment.
Borrowers enrolled in university or graduate school can apply regardless of financial circumstances.
The National Tax Service has improved the deferment application process, allowing applications without submitting supporting documents for business closure. They plan to enhance the system to use public data to facilitate deferment applications without needing additional documentation for unemployment or resignation.
Borrowers seeking deferment can conveniently apply via the “Post-Employment Student Loan Repayment” website (mobile or PC) without visiting a tax office.
For inquiries related to mandatory repayment after employment, contact the National Tax Consultation Center or the corporate tax department at local tax offices.
The National Tax Service will provide pre-filling services for cases without changes, such as resignation or transfer, to facilitate easy and accurate submission of repayment details, aiming to make repayment more user-friendly. Additionally, timely notifications about critical information, such as approaching payment deadlines, will be sent through KakaoTalk notifications and MMS to loan recipients.