Cho Jung-tai: Student Loan Interest Reduced, Grace Period Extended to 2 Years, to Take Effect in Second Half of Year
Taiwan Premier Cho Jung-tai announced that student loan interest rates will be reduced from 1.775% to 0.775%, and the grace period for repayment will be extended from 1 year to 2 years, effective from the new semester in the second half of 2025. This is part of Taiwan's new 18-measure population strategy.
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- 📰 Published: June 11, 2026 at 13:17
- 🔍 Collected: June 11, 2026 at 13:36 (19 min after Published)
- 🤖 AI Analyzed: June 11, 2026 at 13:37 (1 min after Collected)
(Central News Agency, reporters Lai Yu-chen and Yu Kai-hsiang, Taipei, June 11) Taiwan's new population strategy comprises 18 measures. Premier Cho Jung-tai stated today that the Ministry of Education has accelerated regulatory adjustments. Starting from the new academic year in the second half of this year, student loan interest will be reduced by 1%, from the current 1.775% to 0.775%, and the repayment grace period will be extended from 1 year to 2 years.
The Presidential Office recently announced the "New Taiwan Population Strategy - Family Support Chapter," which includes 18 measures aimed at creating a supportive environment for childbirth and child-rearing, strengthening childcare, increasing educational support, fostering friendly workplaces, and reducing housing burdens.
Executive Yuan Spokesperson Lee Hui-chih stated at a press conference after the Executive Yuan meeting today that Minister of Education Cheng Ying-yao explained that the regulations for student loan reduction are complete and are expected to be announced today.
During the meeting, Premier Cho thanked the Ministry of Education for revising and announcing the "Regulations for Student Loans for Senior High Schools and Higher Education Institutions" in the shortest possible time. It is expected that from the second half of this year, the new academic year, student loan interest will be reduced by 1%, from 1.775% to 0.775%, and the grace period will be extended from 1 year to 2 years. He also expressed hope that all political parties would support the 18 measures.
Regarding the establishment progress of the Executive Group for the New Taiwan Population Strategy, Premier Cho stated today that he will serve as the convener, with Executive Yuan Vice Premier Cheng Li-chun as the deputy convener, Executive Yuan Secretary-General Chang Tun-han as the executive secretary, and Executive Yuan Ministers without Portfolio Chen Shih-chung and Yeh Chun-hsien as deputy executive secretaries. In addition to accelerating the implementation of the 18 measures, the group will also organize plans for three strategic aspects: the silver generation, talent cultivation for all ages, and global talent recruitment.
Premier Cho also requested that all relevant ministries fully cooperate with the above four major population strategies to respond to the needs of the generation. (Editor: Zhai Sijia) 1150611
The Presidential Office recently announced the "New Taiwan Population Strategy - Family Support Chapter," which includes 18 measures aimed at creating a supportive environment for childbirth and child-rearing, strengthening childcare, increasing educational support, fostering friendly workplaces, and reducing housing burdens.
Executive Yuan Spokesperson Lee Hui-chih stated at a press conference after the Executive Yuan meeting today that Minister of Education Cheng Ying-yao explained that the regulations for student loan reduction are complete and are expected to be announced today.
During the meeting, Premier Cho thanked the Ministry of Education for revising and announcing the "Regulations for Student Loans for Senior High Schools and Higher Education Institutions" in the shortest possible time. It is expected that from the second half of this year, the new academic year, student loan interest will be reduced by 1%, from 1.775% to 0.775%, and the grace period will be extended from 1 year to 2 years. He also expressed hope that all political parties would support the 18 measures.
Regarding the establishment progress of the Executive Group for the New Taiwan Population Strategy, Premier Cho stated today that he will serve as the convener, with Executive Yuan Vice Premier Cheng Li-chun as the deputy convener, Executive Yuan Secretary-General Chang Tun-han as the executive secretary, and Executive Yuan Ministers without Portfolio Chen Shih-chung and Yeh Chun-hsien as deputy executive secretaries. In addition to accelerating the implementation of the 18 measures, the group will also organize plans for three strategic aspects: the silver generation, talent cultivation for all ages, and global talent recruitment.
Premier Cho also requested that all relevant ministries fully cooperate with the above four major population strategies to respond to the needs of the generation. (Editor: Zhai Sijia) 1150611
FAQ
Which schools are covered by this policy?
Students at senior high schools and higher education institutions (high schools, universities, graduate schools, etc.) are eligible.
When will the new interest rate take effect?
It is scheduled to take effect from the new semester in the second half of 2025.
What does the extended grace period mean?
Graduates can defer repayment for up to 2 years, with reduced interest burden during that period.