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 . Yamaguchi University President Masaaki Oka announced this month that the school will launch a new program funded by donations from alumnus Mamoru Nanamura, the founder of Tokyo-based Septeni Holdings, to support students in difficult financial circumstances. It is expected to fix monthly payments in proportion to the individual 's income , pinning them at roughly 9 % of the annual wage . However , some experts are criticising this new wage - adjusted repayment system , saying it focuses more on recovering the loans than providing a better service . 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 payments in proportion to the individual 's income , pinning them at roughly 9 % of the annual wage . However , some experts are criticising this new wage - adjusted repayment system , saying it focuses more on recovering the loans than providing a better service . 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 .