Premier William Lai (賴清德) yesterday announced changes to a student loan relief scheme that would make interest-only pay and grace periods on repayment available to more than 500,000 people starting on Sept. 1.
Under current regulations, new graduates are entitled to defer their student loan principle and interest payments for up to one year, while people from certified low or middle-income households or those who make less than NT$30,000 (US$978) per month may apply for a grace period of up to four years.
The government is to introduce a policy that would allow anyone who has begun paying their student debt to apply for the ability to pay only interest for up to four years, the Ministry of Education said.
Photo: Wu Po-hsuan, Taipei Times
While more than one interest-only payment period may be granted to the same applicant, the total may not exceed four years, the ministry said.
For lower-income debtors, the Executive Yuan said it plans to expand the four-year grace period program to include those who make up to NT$35,000 per month.
The grace period is granted on an annual basis, during which the debtor is exempt from paying the principal, while the government is to pay their monthly interest, it said.
Photo: CNA
The expansion is expected to add 38,000 people to the program, which currently enrolls 40,000, the ministry said.
The policy permits the same person to enroll in both programs at the same time or in succession to facilitate career planning, it said, adding that a graduate could potentially defer principle payments for up to nine years.
Assuming a principal of NT$300,000, anyone with student debt could see their monthly payments fall from NT$3,273 to NT$288 during the interest payment-only period, Department of Higher Education Director-General Chu Hung-chang (朱俊彰) said.
Flexibility is built into the program to allow applicants to decide how they would spread out the four years, he said.
The estimated combined cost for the programs is NT$600 million in the first year of implementation, Chu said, adding that the figure is to peak at NT$1.54 billion in the ninth year.
According to the ministry’s estimates, 870,000 Taiwanese have taken out student loans and 500,000 have begun paying their debts.
Banks have reported that 7,504 are in arrears with payments.
The average student loan ranges from NT$280,000 to NT$300,000.
In related news, student groups yesterday rallied outside the ministry to protest National Chung Hsing University’s 2 percent tuition hike, which protesters said the ministry approved without performing due diligence.
Members of the Alliance Against the Commercialization of Education said the university’s leadership bypassed talks with the student body and used questionable math to justify the tuition increase.
Asked for comment, department official Lee Hui-min (李惠敏) defended the university, saying that the ministry approved the tuition hike because the school’s leadership has been “very friendly in its communication with students.”
Additional reporting by CNA
South Korean President Yoon Suk-yeol yesterday declared emergency martial law, accusing the opposition of being “anti-state forces intent on overthrowing the regime” amid parliamentary wrangling over a budget bill. “To safeguard a liberal South Korea from the threats posed by North Korea’s communist forces and to eliminate anti-state elements plundering people’s freedom and happiness, I hereby declare emergency martial law,” Yoon said in a live televised address to the nation. “With no regard for the livelihoods of the people, the opposition party has paralysed governance solely for the sake of impeachments, special investigations, and shielding their leader from justice,” he
The Mainland Affairs Council and lawmakers yesterday accused a visiting Chinese university student of denigrating Taiwan’s sovereignty by referring to the national baseball team that won a first-ever Premier12 title as “China, Taipei team” (中國台北隊). “We deeply regret the Chinese student’s words, that have hurt the feelings of Taiwanese... The Ma Ying-jeou Foundation, as the organizers, should remind group members not to use inappropriate words and behavior,” a council statement said. “We hope these young Chinese can accurately observe the true views of Taiwanese, which would be a positive development for interactions between young people on the two sides of the Taiwan
China is trying to set a "red line" for the incoming Trump administration and US allies by stepping up military activities in the region, a senior Taiwan security official said, including likely war games this weekend around Taiwan. China has held two rounds of war games around Taiwan so far this year, and its forces operate nearby on a daily basis. The official confirmed concerns expressed by other security officials in the region who have previously told Reuters that China could launch new drills to coincide with Taiwan President William Lai's (賴清德) trip to the Pacific this week which included visits to
PHONE CALLS: Two US lawmakers told Lai about the US Congress’ bipartisan support for Taiwan to preserve its democracy and freedom, and for stronger bilateral ties US House of Representatives Speaker Mike Johnson said during a telephone call with President William Lai (賴清德) yesterday morning that recognition of Taiwan is at the core of the US’ Indo-Pacific strategy, Presidential Office spokesperson Karen Kuo (郭雅慧) said. The call marked the first time Lai had spoken directly with Johnson, of the Republican Party, since taking office in May. Lai also had a call with US House Minority Leader Hakeem Jeffries of the Democratic Party and a videoconference with Republican Senator Roger Wicker while in Guam, during a stopover on his way back from visiting the nation’s allies in the Pacific,
RSS