The government-owned Japan Student Services Organization, which took over the national loans program of Nihon Ikueikai in 2004, is known for taking a harsh line on those who miss repayments. Japan is to bring in a new wage-adjusted government loans programme, to be launched in April 2017, to help lighten the burden of student loan payments. It is expected to fix monthly repayments in proportion to the individual's income, pinning repayments at roughly 9% of the annual wage. The move comes as Japan's economy has been hit by weak consumer spending and rising inflation that have pushed up interest rates. Mounting student debt in Japan is becoming an increasing concern. A recent report shows that 1 out of 2.6 people in Japan who attended university or college borrowed money from the government, and 333,000 people who still have outstanding student loans are delinquent with payments. Education worldwide accounts for 16% of the money spent by individuals, however, in Japan it accounts for 30% on average of household expenditures.
Japan is to bring in a new wage-adjusted government loans programme, to be launched in April 2017, to help lighten the burden of student loan payments. It is expected to fix monthly repayments in proportion to the individual's income, pinning repayments at roughly 9% of the annual wage. The move comes as Japan's economy has been hit by weak consumer spending and rising inflation that have pushed up interest rates. Mounting student debt in Japan is becoming an increasing concern. A recent report shows that 1 out of 2.6 people in Japan who attended university or college borrowed money from the government, and 333,000 people who still have outstanding student loans are delinquent with payments. Education worldwide accounts for 16% of the money spent by individuals, however, in Japan it accounts for 30% on average of household expenditures.