edu2

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Increasing university graduates unable to pay student loans

According to the Japan Student Services Organization (JASSO), an independent administrative institution that manages student loans, the number of university graduates that failed to make loan payments for more than three months has drastically increased since FY 2001, reaching 185,000 as of end-FY 2005.

The number of those who failed to pay for more than 12 months was 142,000.

Fujii Kazuko, the JASSO employees' union chair, said, "Most of them simply become unable to pay back their loans, and are not intentionally neglecting their obligation. Many cannot find jobs or find only low-wage non-regular work."

Among the reasons for the failure of repayment, "unemployment" ranked second in FY 2005, reaching 20.3 percent, a sharp increase from 6.5 percent in FY 2001. "Low income" was the No. 1 reason, accounting for 22.1 percent. It was 19.1 percent in FY 2001.

In FY 2004, a total of 64.4 billion yen (double that of FY 2000) was authorized to delay payments. 85 percent was due to unemployment. Students on social welfare also increased by two and half times.

Since FY 1999, the interest-bearing student loan program has largely expanded. Pointing out that the government is considering not only expanding the interest-bearing student loan program but also removing the 3 percent interest ceiling, Fujii warned that it may be turned into an educational loan program run as a financial business.
- Akahata, July 14, 2006