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.

Changes in Educational Loans (Number of Loans)

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.

Borrower Details by Type of Educational Institution (FY2012 general educational loans (direct loans))

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:

Students who have been granted entry to a university etc. outside Japan on the condition certain requirements are met (e.g., improvement of language ability).
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.

Reduction of lending rate: 0.4% reduction from regular rate.
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.

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