The government is working to lighten the burden of student loan repayments in an effort to help those who have difficulty finding work after college.
This month, an education ministry advisory panel adopted an outline of a new wage-adjusted government loans program, which is expected to be launched in April 2017. The program is expected to fix monthly repayments in proportion to the individual's income, pinning repayments at roughly 9 percent of the annual wage.
For those unemployed and with no income, the new system will still require a minimum monthly repayment of ¥2,000 to ¥3,000, but borrowers can defer starting their repayments for up to 10 years. This term limit is a new restriction, as the current program allows those with annual incomes of under ¥3 million to postpone repayment for an unlimited period of time.