| In its official comment on Jan 14, KFTA welcomed the Parliamentary Education Committee's final approval of the introduction of Income Contingent Loan(ICL) program for students from the first semester this year.
Since the program requires 10 trillion won in budget and affects about 1 million college students, the government and parliament had to go through long disputes before reaching their final agreement. As the agreement was urgently made at the last minute, KFTA said program improvement such as differentiated interest rate application based on income level or ease of the loan qualification requirements should be considered.
KFTA has requested the introduction of student loan program based on future income prospect since April 2008 and issued a joint declaration on the ICL program together with the Federation of Korea Trade Unions(FKTU), YMCA Korea and Korean Advanced Farmers Federation in last November as part of its consistent efforts to persuade the government.
KFTA emphasizes that legislation of Financial Grant Law for Higher Education to secure OECD-level national budget for higher education(about 8% of total internal revenue) and establishment of solid fiscal foundation are a only fundamental solution to the high college costs. KFTA expects reasonable follow-up measures to ensure the autonomy of private school management and practical college cost reduction.