Relief for Students! New Student Loan Policy Takes Effect in August: 'Three Groups Exempt from Immediate Repayment, Ministry Expands Interest-Free Coverage'

Elementary and secondary schools are set to reopen on August 31, while universities and colleges are entering the peak period for new semester registration and student loan applications.

The Ministry of Education has amended parts of the 'Regulations for Student Loans in Senior High and Higher Education Institutions' and formally submitted them to the Legislative Yuan for record. The new student loan system for high school and above students officially took effect starting the 115 academic year.

Key highlights of this amendment include expanded interest subsidies during enrollment and comprehensive adjustments to post-graduation repayment arrangements, providing tangible financial support from the academic phase through early career stages.

### Who Bears the Interest During Study? Ministry Broadens Interest-Free Coverage

According to Ministry statistics, approximately 150,000 students currently hold student loans, with about 97% already enjoying interest-free benefits during their studies.

The most direct benefit of this revision is the further relaxation of interest burden during enrollment.

Under the latest regulations, the competent authorities will allocate budgets to cover interest accrued from the loan disbursement date up to one day before the repayment period begins for all eligible borrowers.

This adjustment ensures students do not face additional financial strain from interest during their studies, allowing them to focus on academics without worry.

### Do You Need to Repay Immediately After Graduation If Continuing Studies, Military Service, or Internship?

In addition to government-covered interest during schooling, the new policy also relaxes repayment timelines after students complete their academic programs:

- **Continuing Domestic Education**: Repayment of principal and interest can be deferred until completion of the final stage of education. - **Mandatory Military Service**: Repayment can be postponed until the end of service. - **Participating in Teaching Internships**: Repayment obligations begin only after the internship concludes.

By flexibly adjusting repayment start dates, students transitioning into important life phases such as further education, military service, or internships after graduation can avoid immediate heavy repayment burdens.

### How Can Vulnerable Groups Apply for Payment Deferral? Management of School Disbursement Mechanisms

For recent graduates or economically disadvantaged individuals, the new system maintains robust repayment buffers:

- **Income Thresholds and Vulnerable Status**: After entering the repayment phase, individuals whose income falls below a certain standard or who qualify as low-income or moderately low-income households may apply for repayment extension under established guidelines. - **Disaster Relief**: Those affected by livelihood-disrupting major disasters recognized by competent authorities may also apply for deferral and receive related assistance, reducing financial risks during early employment. - **Enhanced School Disbursement Oversight**: The amendment clearly stipulates that after schools verify eligibility, loan funds for textbooks, off-campus housing, overseas research, or living expenses must be disbursed directly to students according to regulations. Competent authorities will conduct regular audits on actual disbursements and use findings as reference for school subsidy evaluations.

The Ministry emphasizes that the core mission of student loans is to ensure no student loses access to education due to family financial circumstances. By reducing interest burdens during study and relaxing repayment schedules across stages, the Ministry hopes students can pursue education with peace of mind and enjoy sufficient space for employment transition upon entering society.