LDP eyes 2.4m yen limit for new student aid

September 19, 2017

TOKYO- Japan's ruling Liberal Democratic Party is examining the idea of limiting the use of new financial assistance for students in higher education to 2.4 million yen per head, Jiji Press learned Monday.

Under the envisioned assistance program, students at higher education institutions such as universities would become obliged to repay the aid money they received only if they reach certain income levels after graduation.

The LDP is considering limiting the maximum repayment period to 20 years and setting the annual income threshold at which borrowers become obliged to make repayments, at 2.3 million to 3 million yen, informed sources said.

The LDP hopes to include the program in measures to reduce education costs at households, a component of Prime Minister Shinzo Abe's planned policy package for human resources development, the sources said.

The program, whose design is being developed based on Australia's Higher Education Contribution Scheme, would reduce the higher education tuition costs borne by households. Jiji Press