Educational Loans for School Entrance Fees and Related Expenses
The Micro Unit handles Educational Loans to lighten the financial burden of educational expenses on families and provide equal educational opportunities. Approximately 110,000 Educational Loans were provided in FY2012. Of these, approximately 17,000 loans were made to households run by single mothers.
Utilized Primarily by Families with Large Educational Expenses
Educational Loans are primarily provided to families with university or technical college students, who incur large educational expenses.
Expanding Educational Loans
JFC upgraded and expanded the Educational Loans program from May 2013.
Partial relaxation of gross income (net income) limits
For households with one or two children who meet the requirements below, the maximum annual gross income (net income) permitted was increased to 9.9 (net 7.7) million yen.
1) At least one child must attend (or intend to attend) a school beyond commuting distance from home.
2) The loan must be used to fund overseas study.
3) Educational expenses exceed 30% of annual gross income.
4) Educational and home loan expenses exceed 40% of annual gross income.
Special measures were implemented for students using educational loans to fund overseas study.
The required length of study at eligible educational institutions was relaxed (from 6 months to 3 months) for students who meet requirements ① and ② below:
That the loan will be used to fund schooling for the purpose of fulfilling the requirements of ① (e.g., language schools).
Note: Certain conditions apply for some schools..
Special measures were implemented for households with annual gross income 2 million yen (net 1.22 million) or less.
Extension of repayment period: lengthened from 15 to 18 years.
Note: 1: 0.4% reduction also applies to households run by single mothers with annual gross income 2 million yen (net 1.22 million) or less.
2: Applications are subject to screening.