JASSO supports motivated and capable students

Transcription

1 Scholarship Loan Programs for Japanese Students JASSO supports motivated and capable students JASSO's scholarship loan programs are implemented as one of the government's important educational measures based on the principle of equal educational opportunity so that motivated and capable students can enjoy higher education of their own choice and on their own responsibility. JASSO provides loans to students who are academically excellent but have difficulty in pursuing their studies due to financial reasons, and strives to provide better systems of loans and repayments based on economic and social conditions in order to mitigate students' various worries. Outline of Scholarship Loan Programs JASSO provides (interest-free) and (interest-bearing) for students attending graduate schools, universities, junior colleges, technical colleges and specialized training colleges (post-secondary courses). The scale of scholarship loans has been expanding. In the FY14 budget, the total amount of loans is about 1,0 billion yen, the number of recipients is 1,400,000, and the loan amount ratio between and Category 2 Loans is about 1:2.8. As repaid loan money is a very high proportion of the resources for scholarship loans, it is very important that recipients fulfill their repayment obligations to support many students in the future. Scale of Scholarship Loan Programs Scholarship loan situation (based on FY figures) Number of loan recipients (A) Total number of students (B) Ratio (A/B X 100) (%) One in every X students 977,005 2,560, Junior colleges 56,518 7, Graduate schools 83, , Master's courses 71, , ,576 49, Colleges of technology 6,475 55, Specialized training colleges (post-secondary courses) 195, , Total 1,318,792 3,491, Notes: 1. Total numbers of students (B) for universities, junior colleges and colleges of technology are from the FY School Basic Survey Report, while the numbers for graduate schools and specialized training colleges are from a survey by JASSO recipients of scholarship loans for university correspondence courses are not included in the table. Changes in number of recipients and amount of scholarship loans (estimates) students 1,400,000 1,0,000 1,000, , , ,000 0,000 Number of recipients 965, , , , , ,065 1,008, , ,287 Program cost 1,018, , , ,092, , ,298 1,148, ,183, , , ,924 1, ,543 1, ,271,8 358, ,555 1,339,301 1, , ,963 1, ,443,1 425, ,017,302 1, ,408, , ,867 billion 1,0 1,100 1, FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY FY Notes: 1. The number of recipients and the amount of scholarship loans of those students who entered upper secondary schools, which include upper secondary schools and upper secondary courses of specialized training schools, in FY05 or later are not included because they have been transferred to prefectural or municipal authorities. 2. Figures may not sum up to the total because of rounding. FY14 0 5

2 Resources and Budget for Scholarship Loan Programs (FY14) Breakdown of resources Total cost of scholarship loan programs (Interest-free loans) 1, Government loans 67.6 Government loans (recovery and restoration) 6.8 Credited repayments (Low-interest loans) Fiscal loan funds Fiscal investment and loan program agency bonds (unit: billion) fund loans Credited repayments Redemption of fiscal loan funds, etc. 1,024.1 Note: Figures may not sum up to the total because of rounding. Number of loan recipients and loan amount by school type universities universities junior colleges Graduate schools Master's courses (Graduate law schools included in the Master's courses) Colleges of technology Specialized training colleges (post-seconday courses) Correspondence courses and junior colleges Graduate schools Master's courses (Graduate law schools included in the Master's courses) Colleges of technology (4th and 5th year students) Specialized training colleges (post-seconday courses) Special increase in the loan amount for entrance preperation Number of loan recipients New recipients (included in the number of loan recipients) Loan amount ( million) 451, , , ,843 92,751 2, ,460 26,536 59, ,103 60, ,470 11,280 5,811 7,4 66,941 31,336 63,703 56,270 27,762 49,708 3,406 1,7 3,281 10,671 3,574,995 4, ,654 44,196,351 28, , , , ,974 2, ,241 16,708 8,981 18,298,932 8,716 17,343 1,300 1,100 3, ,079 84, ,747 70,490 70,490 26,702 Scholarship loans for study abroad 7,716 6,794 5,427 Total 1,408, ,970 1,174,476 Notes: 1. junior colleges are included in "national and " of. 2. Emergency payments for 4,3 people are included in new recipients of. 3. The column for "New recipients" under "Colleges of technology" in applies to 4th year students. 4. The figure for the number of recipients of a "Special Increase in the Loan Amount for Entrance Preparation" in is those included in each school and college of. 5. Figures may not sum up to the total because of rounding. Scholarship Loans Loan recipients are selected upon being recommended by their school heads and undergoing strict screening by JASSO. In cooperation with schools, JASSO also endeavors to improve the capability of students as loan recipients and to remind them of the importance of repaying their loan after graduation. Types of Scholarship Loans These are interest-free scholarship loans. These loans are provided to students who are academically outstanding but have significant difficulty in pursuing their studies due to financial reasons. Income-based repayment postponement for Those who meet the standards for (excluding those for graduate school) and who meet economic conditions set separately may receive a postponement in their payment period through application until their salary and income reach a certain level after graduation. Exemption from repayment for graduate school students with particularly outstanding results Graduate school recipients of, whom JASSO recognizes as having achieved particularly outstanding results in their studies when the loan period is completed, may be exempted from repayment of a portion of or the entire loan. In FY, 9,670 out of 32,289 graduate school recipients who completed the loan period were exempted from repayment. These are scholarship loans which bear interest. These loans are provided to students who are academically excellent but have difficulty in pursuing their studies due to financial reasons. The interest rates of are set to the same rates as those of JASSO's borrowing fiscal loan funds as resources for scholarship loans from the government, and are lower than general educational loans. (Ref.) Interest rate for recipients who completed the loan period as of March 14 (interest rate for monthly base amount): Fixed interest rate: 0.82% per year / Variable interest rate: 0.% per year *The act stipulates that the maximum rate of the interest is 3.0% per year. *Category 2 loans are interest-free before graduation and during the postponement of payment. 6

3 Selection Method Prior applications (applying before commencing studies) Students may apply for scholarship loans prior to commencing studies so that they can commence studies without worries. Applications are accepted through the schools in which students are enrolled the year prior to commencing studies. Post-entry applications (applying after commencing studies) Applications are accepted through the schools in which students are currently enrolled. In principle, there will be a notification for application every spring. Emergency applications (), temporary applications () Applications for scholarship loans are accepted anytime through the schools in which students are currently enrolled if the necessity arises because of sudden changes in financial situation of students' families due to unemployment, personal bankruptcy, company bankruptcy, sickness or death, or disasters such as fires, earthquakes, storms, or flooding. The selection criteria are based on the following standards: student's character, health, academic ability, and his/her family's financial condition. Requirements for recommendation (for Post-entry application of university students) Loan category and school type Academic requirements Have obtained average of grades above 3.5 for junior and senior years of highschool - Have shown academic performance above average in highschool. - Show exellence in one specific field. - Be motivated and qualified to accomplish studies. Note: Income requirements show the upper limit of annual income of those who support the living of applicant's family. Income requirements: Upper limit of annual income for saralied family approx approx approx approx..23 (unit: million) Scholarship Loan Amount Scholarship loan amount and example of repayment plan (as of FY14) Junior colleges and Specialized training colleges (Post secondary courses) Graduate schools (interest-free loans) - In the case of loans starting from April Monthly amount Loan period months Total repayment Monthly repayment Number of installments 45,000 2,160,000, Away from home 51,000 2,448,000,600 54, ,592,000 14,400 Away from home 64,000 3,072,000 14, ,000 9,230 6 Master's courses Away from home Away from home 45,000 51,000 1,080,000 1,224,000 7,500 8,500 53, ,272,000 8,833 60,000 9, ,000 7,000 6, ,000 1,0,000 8, ,000 2,1,000, ,000 2,880,000, ,000 4,392,000 18,300 Years for repayment (undergraduate) 30,000 50,000 80, ,000 (low-interest loans) - In the case of loans starting from April Monthly amount Loan period months Total amount lent Total repayment Monthly repayment Number of installments 48 2,400,000 3,840,000 4,800,000 1,761,917 3,018,568 5,167,586 6,459,510 11,293 16,769 21,531 26,914 0,000 5,760,000 7,751,445 32,297 For, applicants can choose the amount of a monthly payment (five choices). Notes: 1. Annual interest is calculated on money loaned at the maximum rate of 3.0%. 2. Interest for the period from the time of graduation until commencing repayments is included in the total amount of repayment. Special increase in the loan amount for entrance preparation (bearing interest) Specially increased amount may be transferred along with the first loan amount to help a student pay for expenses incurred when entering school upon request. The student may choose one of the following amounts of special increase to his/her loan : 100,000, 0,000, 300,000, 400,000, or 500,000. Scholarship loan and repayment simulation This is a tool that estimates the amount of loans that can be borrowed and future repayment amounts before students apply. *In Japanese only. 6 Years for repayment 7

4 Scholarship Loans for Studying Abroad Scholarship loans for those wishing to study abroad () This loan system is for those wishing to study abroad for a degree at colleges, universities and graduate schools after graduating from a Japanese high school, college, university or other educational institution. A student can apply by submitting an application after obtaining a recommendation from the president or principal of the school which the applicant is presently attending or has attended. The application must be made within two years of completion of study at the school. These loans may be utilized together with the Special Increase in the Loan Amount for Entrance Preparation (). *Both a personal guarantee and an organizational guarantee are reguired for this loan system. Scholarship loans for short-term study abroad () These scholarship loans, on the recommendation of the university president, are offered to students who plan to study abroad for more than three months and less than one year based on student exchange agreements between Japanese and overseas universities, or credit transfer systems among those universities. These loans may be utilized together with the Special Increase in the Loan Amount for Occasions such as Study Abroad Preparation (). * (for long-term dispatch recipients), (for short-term dispatch recipients) The application for for students who will study abroad under the Student Exchange Support Program (refer to Page ) will be started by the end of FY14. Guarantee System, Handling of Personal Credit Information, and Interest Rate Calculation Method Guarantee system Applicants are required to choose either "personal guarantee" or "organizational guarantee." Personal guarantee: The applicant selects a joint guarantor (mother or father, or someone serving in their place if the applicant does not have a mother or father) and a guarantor (someone within the fourth degree of kinship of the applicant and who is financially independent from the joint guarantor). Organizational guarantee: Japan Educational Exchanges and Services (JEES) will serve as a joint guarantor with the payment of a specified amount of guarantee money. In such cases, there is no need for a separate guarantor. Agreement on handling of personal credit information If repayments are delayed for three months or more, personal information of the person who delayed the payment shall be registered with personal credit information organizations. Therefore, the applicants for scholarship loans are required to submit the "written agreement" on the handling of personal credit information at the time of application for scholarship loans. Interest rate calculation method The interest rate for are calculated by the fixed interest rate method in which the rate determined at the completion of the loan period is applied until the completion of repayment, or the variable interest rate method in which the interest rate is revised every five years during the repayment period. Guidance for Scholarship Students during Loan Period JASSO makes efforts for student guidance in cooperation with universities, etc. Annual check of qualification as a loan recipient To provide scholarship loans to qualified students who truly need the support, JASSO, every year, confirms the qualification of students as loan recipients in cooperation with the schools in which the students are currently enrolled. Based on the "Application for Continuation of Scholarship Loans" and other documents submitted by students, it will be examined whether they are eligible to continue to receive loans based on their character, health, academic ability, and financial condition. Change of monthly loan amount, and refusal The monthly loan amount may be changed, or the loans may be refused at the request of the scholarship student. Scholarship Loan Repayment In JASSO's scholarship programs, the repaid amount of money will be used immediately as scholarship money. Therefore, JASSO strives to collect repayment money properly to provide loans to as many students who need support as possible. 8

5 About Repayment Number of repayment installments, installment method, and repayment starting month The number of repayment installments depends on the total amount of the loan (borrowed amount). Repayments are to be done in monthly installments or both monthly and semiannual installments, and start seven months after the completion of the loan period. Relay accounts Repayments are automatically deducted from the recipient's bank account. Advance repayment For both and, it is possible to pay the installments in advance of the payment deadline upon request by the loan recipient. Measures for Recipients Who Have Difficulty in Making Repayments For recipients who have difficulty in making repayments, JASSO takes the following measures. Reduction of the monthly installment If loan recipients have difficulty in making repayment due to disaster, sickness, injury or other financial reasons, but can still pay if the installment is reduced, they may be granted a reduction of the monthly installment amount to half for a certain period of time upon request. Postponement of payment Postponement while in school By notification, the payment deadline will be postponed while loan recipients are still pursuing their studies at school (with some exceptions). Postponement for other reasons Loan recipients who have difficulty in making repayment due to disaster, sickness, injury, financial hardship, unemployment, etc. may be granted a postponement of the payment deadline upon request. With the revision of the system in April 14, the maximum length of the postponement of payment was extended from five years in total to ten years in total. Exemption from repayment When it becomes impossible to make repayments due to death or physical or mental disabilities, the loan recipients may be exempted from repayment upon request. There is also the "Exemption from Repayment for Graduate School Students with Particularly Outstanding Results" for Category 1 Loans (refer to Page 6). *The exemption system for teaching and research professions, which was conditional upon being in employment for a certain period of time, has been abolished. About Overdue Repayment To prevent long-term overdue repayment, JASSO notifies of overdue repayment each month and asks for proper action to be taken while informing those who have difficulties in repayment of reduction of the monthly installment and postponement of payment. Overdue repayment charges Additional charges will be imposed on overdue installments (excluding interest) as overdue charges, prorated by the number of days delayed. With the revision of the system in April 14, the imposition rate of overdue charges that accrued or would accrue in or after that month was reduced from 10% to 5% a year. Registration of personal information with personal credit information organizations If repayments are delayed for three months or more, personal information of the person who delayed the payment shall be registered with personal credit information organizations. This action is taken to prevent those who delayed the repayment from borrowing more from other financial institutions, which results in multiple debts. Once the person is registered, he/she will not be able to take out loans from private financial institutions for a certain period of time. Demand of repayment For loan recipients who have selected a personal guarantee: Collection notices will be sent to the loan recipient, the joint guarantor, and the guarantor via letter, telephone, and/or visit. If there is no repayment even after such notices are received, the benefit of time shall be withdrawn, and legal procedures demanding repayment may be taken. For loan recipients who have selected an organizational guarantee: Collection notices will be sent to the loan recipient via letter, telephone, and/or visit. If there is no repayment even after such notices are received, the benefit of time shall be withdrawn, and the guaranteeing organization shall repay JASSO in place of the loan recipient. The guaranteeing organization shall then claim payment for the repaid amount from the loan recipient. 9