#1 out of 550.00%
world2h ago
Student aid loans used for stock investing prompt new cap - UPI.com
- South Korea will cap living expense loans for university students to curb rising debt and risky investments.
- The cap follows reports of students using loans to invest in stocks and cryptocurrency.
- Current loans offer 1.7% interest, well below typical commercial rates of 3%–4%.
- Borrowers can get up to 2 million won per semester if they meet credit and grade requirements.
- Experts say the trend reflects financial pressures on students and speculative behavior.
- Delinquent loan balances rose from 19.2 billion won in 2021 to 38.7 billion won last year.
- An online financial education course will be required before borrowing.
- The cap aims to prevent excessive debt after graduation as loans must be repaid.
- The policy change follows broader moves on student finance and lending.
Vote 0




