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Scholarship Loan Programs for Japanese Students

The scholarship loan system provides loans for school expenses to outstanding students who are having difficulty with their studies due to economic reasons. Eligible students include those attending educational institutions such as Graduate schools, universities, junior colleges, colleges of technology, professional training colleges, established based on the Japanese School Education Law.

 

*Students who plan to study abroad can apply to Category 2 Loans for Those Hoping to Study Abroad.
*The scholarship loan program of JASSO also applies to students enrolled before April 2004 to upper secondary schools or upper secondary courses of professional training colleges.

 

If you want information on Support Programs for International Students, click here!

 

Types of loans, eligibility and conditions

Loan Type Category 1 loans
(interest free)
Category 2 loans
(with interest after graduation)
Eligibility -Students of graduate schools, universities, junior colleges, colleges of technology, professional training colleges -Students enrolled before April 2004 to upper secondary schools or upper secondary courses of professional training colleges Students of graduate schools, universities, junior colleges, colleges of technology (4th and 5th year students) and professional training colleges
Condtions Loans for particularly promising students experiencing significant difficulties with their studies due to financial reasons

Same as Category 1 though selection criteria are less strict

 

Loan Amounts

Category 1 loans have separate designations upon the level or type of school, year of commencing loan and form of attendance at school.

For Category 2 loans, the recipient can choose from four types of monthly loan amounts.

The monthly payment starts sometime after commencing of school year, but it is possible to set the payment to start back from the first month of the school year, if the student so desires.

Those who also meet the requirements can apply for the special increase when entering school, according to their needs.

 

Scholarship Loans for Those Hoping to Study Abroad (Category 2 Loans)

This loan system has been established in 2004 with a view to the nurturing of individuals who will become active in the international sphere.

Applications can be made upon obtaining of recommendation by the president of school in which the applicant is attending or attended (an application must be made within two years after completion of the previous school in Japan).

 

Repayment

Repayments are automatically deducted in principle after graduation, in monthly, or both monthly and half-yearly installments (half of the total amount is paid monthly and the remainder in half-yearly installments).

These are called "Relay Accounts" to signify that the money returned is handed on for other students to use.

The number of repayment installments depends on the size of the loan.

Postponing Repayment

Loan repayments can be postponed for the following reasons if requested:

  1. When repayment has become difficult due to a disaster, sickness or injury
  2. When still studying at school

Recruitment Method and selection

Applicants who have been recommended by their school presidents are screened to be recipients.

Selection is based on criteria covering character, health, academic ability and family financial situation.

 

Loan Period

Every month from the time JASSO authorizes a loan until the final period of study at the school attended, money is paid to an account held in the recipients' name, at a bank, credit union or labor credit association.

In the case of emergency loans, however, the final payment will be in March of the fiscal year in which the loan commenced.

If continuation of the emergency loan is necessary for the following fiscal year, the loan can be continued, if requirements are satisfied, by submitting an application form for "Requiest for Continuation of Emergency Educational Loan."

 

Exemption from Repayment

Exemption from repayment will be granted upon request if the following conditions are met:

Category 1 loans (interest-free)

Unable to make repayments due to death, physical or mental disabilities;
A graduate student achieves particularly outstanding results and fulfuills the following condition:

Eligibility: Recognized by JASSO as having achieved particularly outstanding results during the course of his or her studies.
Benefit: A total or partial exemption from repayment when the loan period is finished.

 

Category 2 loans (low-interest)

Payment becomes impossible due to death, physical or mental disabilities.