The Ministry of Strategy and Finance (MOSF) proposed a budget plan for 2013 on Sept. 25. One of the most evident changes was the increase in the budget for education. Financial aids for scholarships, such as National Future Dream Scholarship and National Work Study Program, university facilities, and student housing have expanded.
The increased financial aids on scholarships are expected to benefit university students from 2013.
The National Future Dream Scholarship will be expanded from this year’s budget, 1.5 trillion won to 2.25 trillion won in 2013. With such increased budget, the range of beneficiaries will be expanded from those who receive the bottom 30 percent income to those in the bottom 70 percent, pertaining to nearly 57 students out of 100. In addition, beneficiaries will be responsible for 50 percent of their college tuition—a 20 percent reduction compared to 2012.
The National Work Study Program has also expanded, from 81 billion won to 143 billion won and the number of beneficiaries from 37,000 to 72,000.
With the aggrandized budget plan, student loans, such as Income Contingent (Deun Deun) Student Loan which provides reduced interest loans for students from low income families, will be offered to an increased number of beneficiaries as well; 56 thousand more students will be able to receive Income Contingent Student Loan. With the change, Korea Student Aid Foundation, the loan providing institute, will receive an increased budget accordingly; approximately 138.4 billion won will be added to its prior expense, amounting to 297.7 billion won.
Financial aids to foster improvement in university facilities will increase from 1.3263 trillion won to 1.62 trillion won.
Students will not only benefit financially but also physically, for the new budget plan includes a construction of two dormitory buildings by 2013 that can accommodate up to 3,000 students in Seoul for those from rural areas. The MOSF has also proposed to double private universities’ budget plans in constructing dormitory buildings.
Aside from increasing financial benefits for students, MOSF plans to invest 13.9 billion won, approximately a 25 percent increase from this year’s, more in special education programs designed for the disabled. The MOSF also increased the amount of basic living expense provided and the number of those who receive it to 30,000 as well.