The burden of long-term delinquencies on student loans has shifted from young adults in their 20s to middle-aged individuals in their 30s and 40s. Those aged 40 and older now account for half of the total delinquent amount, with nearly 60% of the debt being classified as 'ultra-long-term delinquency' lasting over three years.
According to data submitted by Rep. Han Byeong-do of the Democratic Party to the National Assembly's Education Committee, as of the end of July 2026, there were 50,101 borrowers who had been delinquent for more than six months, with a total delinquent amount of 272.3 billion won.
The majority of long-term delinquents are in their 30s and 40s. The number of borrowers by age group shows that those in their 30s make up the largest share at 24,061 (48.0%), followed by those in their 40s at 18,993 (37.9%), and those in their 20s at 7,047 (14.1%). Thus, individuals over 30 represent 85.9% of all delinquents.
The disparity in delinquent amounts is also pronounced. Borrowers aged 40 and older hold 134.3 billion won, nearly half (49.3%) of the total delinquent amount. Those in their 30s account for 115.4 billion won (42.4%), while those in their 20s hold 22.6 billion won (8.3%).
As age increases, the average debt burden per person also rises. The average delinquent amount per person (overall average 5.435 million won) is 3.21 million won for those in their 20s, 4.8 million won for those in their 30s, and 7.07 million won for those aged 40 and older, which is 2.2 times that of those in their 20s.
There are also concerns about the worsening quality of delinquencies. Among the delinquent amounts, 'ultra-long-term delinquent' loans that have not been repaid for over three years total 160.1 billion won, accounting for 58.8% of the total. Loans delinquent for 1 to 3 years amount to 84.8 billion won, while those delinquent for 6 months to 1 year total 27.4 billion won. The number of borrowers trapped in delinquency for over three years has reached 31,196.
Despite this situation, recovery efforts have been declining. The annual occurrence of long-term delinquent loans rose sharply from 34.7 billion won in 2022 to 56.8 billion won in both 2024 and 2025, a 63.7% increase. In contrast, the recovery amount during the same period fell from 32.1 billion won to 29.2 billion won, a 9.0% decrease. Consequently, the net increase in long-term delinquent loans from 2022 to July 2026 is 87.1 billion won, calculated from the cumulative occurrence (224.7 billion won) minus the cumulative recovery (137.6 billion won).
As concerns about student loan defaults grow, the Korea Student Aid Foundation is in discussions with the Financial Services Commission, the Ministry of Education, and the Korea Asset Management Corporation (KAMCO) to sell long-term delinquent loans to KAMCO's 'New Leap Fund' starting in July 2025. However, the planned sale will only cover about 3,800 borrowers, which is insufficient compared to the total of over 50,000 delinquents.
Rep. Han Byeong-do stated, "Student loan debt is not just a problem that ends in youth. We need to prepare a debt adjustment roadmap for all 50,000 individuals, not just the 3,800 covered by the New Leap Fund sale."
* This article has been translated by AI.
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