TAIPEI (TVBS News) — Sandy, a recent graduate in Taiwan, has been struggling to make headway on her student loans despite working diligently and saving as much as possible.
Like many young adults in Taiwan, she feels overwhelmed by rising living costs, soaring inflation, and high-interest rates.
"I had NT$300,000 in student loans," she explained. "Two years after graduation, I still owe NT$280,000."
According to the Ministry of Education (MOE), approximately 730,000 people in Taiwan have to reimburse student loans. Yet, the terms for obtaining a loan have not changed in over a decade.
Currently, the requirements state that only those from low-income or lower-middle-income households earning less than NT＄1.2 million per year are eligible to apply, leaving out those who fall just outside the criteria but still lack the means to pay higher education fees.
Public Relations Director Yang Jui-te of the Taiwan Alliance for Advancement of Youth Rights and Welfare pointed out, "The student loan terms have remained unchanged for 16 years, which is no longer suitable in the current economic situation marked by inflation."
"Although student loan holders get an 8-year respite period, it only covers the interest rates and not the principal balance, causing further delays and deferring today's problems to tomorrow," he added.
In contrast, a 2022 policy in the United States allows families with yearly income below US＄125,000 to waive up to US＄20,000 of student loan debt, equivalent to around NT＄610,000.
With wage increases falling far behind the rising cost of daily necessities, the MOE has pledged to ease the financial burden on young adults by adjusting student loan application and repayment thresholds.