Starting in the 2027 academic year, new and transfer students at 20 colleges will be ineligible for national scholarships and may face restrictions on student loans. Notably, six institutions, including Sangji University, Chugye University of the Arts, Seoyoung University, and Yeoju University, have been added to the list, which did not include them last year, prompting heightened caution among prospective students and their parents.
Six New Additions to the List of Restricted Colleges
On August 24, the Education Ministry released the list of 20 colleges designated as 'financial aid restricted universities' for the 2027 academic year, part of a total of 308 institutions evaluated.
Of the 308 colleges assessed, 288 (173 general and industrial universities, 115 vocational colleges) were classified as eligible for financial aid. In contrast, 20 colleges received the negative designation of 'restricted universities,' meaning they will not qualify for national scholarships or student loans.
Among these, 16 colleges are fully restricted, while four are partially restricted. The new additions to the fully restricted list include Seoyoung University and Yeoju University, while Sangji University, Chugye University of the Arts, International University, and Daedeok University have been newly designated as partially restricted.
The remaining 14 colleges on the fully restricted list include Geumgang University, Daegu Arts University, SinGyeongju University, Yewon Arts University, Jeju International University, Korea Baptist Theological University, Hanil University, and Hwaseong University of Science (all general universities), as well as Gwangyang Health University (scheduled for closure), Naju University, Busan Arts University, Songho University, Yeongnam Foreign Language University, and Woongji Taxation University (all vocational colleges). Notably, Catholic Kwandong University, Yeongnam Theological University, and Suwon Science University, which were on last year's restricted list, have been removed this year.
Reasons for Financial Aid Restrictions
The 'financial aid restricted university' system aims to ensure the quality of higher education and identify underperforming institutions. The designation is determined by the Financial Aid Review Committee, which applies two key criteria: 'university accreditation' and 'financial assessment of private universities.'
'University accreditation' evaluates whether an institution meets essential requirements as an educational entity. Colleges that receive an 'unaccredited' status are fully restricted from national scholarships and all types of student loans (both income-contingent and standard repayment).
The 'financial assessment of private universities' is conducted by the Korea Scholarship Foundation, which uses eight quantitative indicators, including operational losses and debt ratios, to assess a university's short-term financial viability and sustainability. Even if a college passes the accreditation evaluation, it can still be designated as a partially restricted university if it is classified as a 'financially troubled institution' in the financial assessment. In this case, students can only access general repayment student loans, while national scholarships and income-contingent loans are not available.
Impact on New and Transfer Students; Current Students Remain Eligible
This decision will only affect new and transfer students entering in the 2027 academic year. Therefore, existing students enrolled at these 20 colleges will generally continue to benefit from the current national scholarship and student loan support systems.
However, students who enrolled in colleges that have been continuously designated as financial aid restricted since before the 2027 academic year will still face restrictions. Among the 16 colleges on the fully restricted list, 14 have been designated as such for two consecutive years, following their classification in the 2026 academic year. These include Geumgang University, Daegu Arts University, SinGyeongju University, Yewon Arts University, Jeju International University, Korea Baptist Theological University, Hanil University, Hwaseong University (all general universities), and Gwangyang Health University (scheduled for closure), Naju University, Busan Arts University, Songho University, Yeongnam Foreign Language University, and Woongji Taxation University (all vocational colleges).
For instance, students who enrolled in these 14 colleges in the 2026 academic year and will be entering their second year in 2027 will face the same restrictions on national scholarships and all student loans as the new students. However, if the designation changes from fully restricted to partially restricted, more favorable conditions will be applied to assist students.
Lee Hae-sook, Director of the Higher Education Policy Office at the Education Ministry, strongly urged prospective students and their parents to verify the lists of eligible and restricted colleges before making their final decisions to avoid any disadvantages.
Chugye University of the Arts Addresses Financial Concerns
Meanwhile, Chugye University of the Arts, which has been newly designated as a financially troubled institution, issued a statement from its president in response to the situation.
The university explained, "This designation is due to a temporary operational loss in the 2025 fiscal year, which has since been fully addressed as of April 2026. Currently, we have resolved all financial burdens, and our accreditation status remains intact, with classes and academic operations proceeding normally."
Additionally, the university emphasized that current students are not subject to financial aid restrictions and that it is working with the school foundation to ensure that scholarships for new and transfer students in the 2027 academic year will be adequately supported.
* This article has been translated by AI.
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