Student Loan Repayment in Japan

Created on 29th October 2021

Conference: The Asian Conference on Education & International Development (ACEID2022)
Title: Student Loan Repayment in Japan
Stream: Higher Education
Presentation Type: Virtual Poster Presentation
Authors:
Shuai Wang, The University of Tokyo, Japan

Abstract:

Student loans are an important educational policy to promote higher education opportunities for students with financial difficulties, and the number of borrowers is increasing every year. In Japan, one in three students used student loans to attend university. However, it is not always clear how the student loans are repaid after students graduate from university and how they have contributed to the borrowers’ careers and lives. This study aims to understand the actual student loan repayment situation and examines whether differences in awareness and information gathering about student loans at the time of application make a difference in the repayment. The analysis used data from the “Survey on the Attributes of Student Loan Recipients,” which was responded to by people who repaid their student loans and delinquent borrowers. The results show that the higher the individual’s motivation for using the student loan and involvement in the preparation of the application documents, the earlier the time of recognition of the student loan repayment. In addition, the higher the participation in preparing the application documents, the more smoothly the student loan is returned. For those who are delinquent, the student loan provides them with the opportunity to go on to higher education, but it does not enhance their learning expenses or reduce their need for a part-time job while in university.