Rising interest rates increase loan burdens for students in Japan

Rising interest rates are leading to higher interest rates on loan-type scholarships for university students in Japan.

Higher rates on such scholarships may cause some people’s repayment balances to increase by more than ¥1 million ($6,160). This would come at the same time as inflation and tuition increases, prompting concerns about impacts on future plans such as marriage and savings.

In fiscal 2024, which ended in March last year, 51.1% of Japanese university students attending day classes received loan-type scholarships from the Japan Student Services Organization, or JASSO, and companies, according to the organization. The share rose from about 20% in the late 1990s, standing at around 50% since fiscal 2010.