If your child is at university with an income-contingent student loan, there is one thing worth checking this autumn. According to the government's "What changes from the second half of 2026" announcement (30 June 2026), interest-waiver eligibility for student loans widened on 1 July, and widens again for regional-university students on 20 November. This guide compares several news reports that cite the Ministry of Education, checked on 30 October 2026, and keeps only what parents need to know.

What changed: from bracket 5 to bracket 6, and bracket 8 for regional universities

Until now the interest waiver on income-contingent student loans applied only to support bracket 5 and below.
Since 1 July 2026 the common threshold is bracket 6 and below, and students at regional universities become eligible up to bracket 8 and below from 20 November 2026.
That is three weeks from the day this was written. A regional-university student who sat outside bracket 5 and has been paying interest may newly qualify.

The waiver period moves from two years after graduation to "until mandatory repayment"

The period matters as much as the bracket. Previously interest was waived only within two years after graduation.
The new rule is from the date the loan was taken until mandatory repayment begins. If graduation or a first job comes late, no interest is added as long as income has not reached the repayment threshold.
Read this only on the condition that the bracket requirement is met. Outside the bracket, a longer period does not make a loan eligible.

There is nothing to apply for

According to the reports, the waiver is applied automatically once the income bracket and the university's location are confirmed, with no separate application. The Korea Student Aid Foundation reflects it in its system.
So there is no application window to miss. What you do need to check yourself is which bracket you are actually assigned, because that is what the automatic rule relies on.
If household income changed a lot during the term, the bracket may change at the next semester's review. Not adding interest does not mean you should borrow as much as you can, since the principal still piles up by graduation. Borrow only what you need once you know your bracket.

How to check your bracket and your university's location

The Foundation sets the support bracket each semester by reviewing household income and assets when you apply for a loan or scholarship. It can change from term to term, so do not rely on last semester's number.
The steps are short: log in to the Foundation's website, look at this semester's support bracket, and compare it with whether your university counts as a metropolitan-area or regional university.
Reports word the exact scope of "regional university" slightly differently, so this guide does not state it as fact. The Foundation's notice is the standard.
If your child transfers or changes university, the location can change and so can the benefit, so check the status again after any change of enrolment.

An interest waiver is not a principal waiver

This is the most common misunderstanding. What is waived is the interest. The amount borrowed must still be repaid.
Once mandatory repayment starts, interest is added again. The income level that triggers repayment is set by notice each year, so check the latest figure in our guide to income-contingent repayment thresholds and the Foundation's announcements.

What about students who already paid interest

This is not confirmed in the reports. We could not find an explanation of whether interest already paid is refunded or from which date the new rule applies.
Guessing would only cause confusion, so if interest has been billed since July, the safe step is to ask the Foundation's customer centre to check your case individually.
Separately, if your university is on the restricted list, that is a different matter, so read our piece on the 20 universities with restricted student aid for 2027 as well.

Arrears are handled separately from the waiver

A wider waiver does not change the rules for a loan already in arrears. Long delinquency can affect your credit record, so look up the criteria and release conditions in our guide to student loan arrears and credit-warning registration.
If your income has dropped and repayment is hard, ask about repayment deferral before you fall behind.

Summary in order

1) Since 1 July the waiver covers bracket 6 and below, and regional universities get bracket 8 and below from 20 November. 2) The waiver period changes from two years after graduation to until mandatory repayment. 3) No application is needed; it is automatic. 4) Check this semester's support bracket and your university's location on the Foundation's website. 5) Only interest is waived; the principal must still be repaid.
This guide summarises reported policy and is not individual loan advice. Confirm whether it applies to you with the Ministry of Education and the Korea Student Aid Foundation.