Japan expands the reduced scholarship loan repayment scheme (April 2024) — income cap raised for salaried workers from 3,250,000 to 4,000,000 yen, and 4 reduction rates to choose from
Source material is a Japanese government announcement (in Japanese); this page is a summary.
The Japan Student Services Organization (JASSO) reduced repayment scheme was expanded from April 2024 (Reiwa 6, April): the income cap for using it rose from an annual income of 3,250,000 yen or less to 4,000,000 yen or less for salaried workers, and the reduction rates on offer grew to 4 options (1/2, 1/3, 1/4, 2/3).
Key facts
| In force from | April 2024 (Reiwa 6, April) |
|---|---|
| Responsible body | Japan Student Services Organization (JASSO), an incorporated administrative agency |
| Income cap (salaried workers) | Raised from an annual income of 3,250,000 yen or less to 4,000,000 yen or less |
| Income criteria by number of dependent children (salaried workers) | 2 children: 5,000,000 yen or less / 3 or more children: 6,000,000 yen or less |
| Criteria including non-salary income | Annual income of 3,000,000 yen or less (4,000,000 yen with 2 children / 5,000,000 yen or less with 3 or more) |
| Reduction rates on offer | 1/4 and 2/3 added to the existing 1/2 and 1/3 (4 options in total) |
| How long it lasts | 12 months per application, up to a total of 15 years (180 months), and can be extended |
| Requirements | Repayment difficult because of a disaster, illness or injury, or financial reasons; no arrears; signed up to direct debit (the 'relay account'); repaying in monthly instalments |
| Who cannot apply | People who chose the income-contingent repayment option on a Category 1 scholarship loan awarded in fiscal year 2017 (Heisei 29) or later cannot apply |
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The reduced repayment scheme run by the Japan Student Services Organization (JASSO) is a national scheme that lets users who find repayment difficult because of a disaster, illness or injury, or other financial reasons, cut their monthly repayment and repay over a longer period instead. From April 2024 (Reiwa 6, April) the income cap for using the scheme was raised from an annual income of 3,250,000 yen or less to 4,000,000 yen or less for salaried workers, and eased further to 5,000,000 yen with 2 dependent children and 6,000,000 yen or less with 3 or more. The reduction rates were also expanded: 1/4 and 2/3 were added to the existing 1/2 and 1/3, giving 4 options in total. The scheme can be used for a total of up to 15 years (180 months), and users must have no arrears and meet requirements such as being signed up to direct debit (the 'relay account') and repaying in monthly instalments.
Background — why this change
The reduced repayment scheme is designed to ease the monthly repayment burden for users who find repaying their scholarship loan difficult for financial and other reasons. The April 2024 revision widened the income criteria and the choice of reduction rates, making the scheme easier to use.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
Summaries reflect national-level programs. Municipal (city/ward/town) programs may differ — confirm with the official desk before applying.
FAQ
What is the reduced repayment scheme?
It is a national JASSO scheme that lets you cut your monthly repayment to 1/2, 1/3, 1/4 or 2/3 of the usual amount and repay over a longer period instead. It can be used for a total of up to 15 years (180 months), and can be extended in 12-month blocks, one application at a time.
What changed in April 2024?
The income cap for using the scheme rose from an annual income of 3,250,000 yen or less to 4,000,000 yen or less for salaried workers (5,000,000 yen with 2 dependent children and 6,000,000 yen or less with 3 or more), and 1/4 and 2/3 were added to the reduction rates, giving 4 options in total.
Who can apply?
It is for users who find repayment difficult because of a disaster, illness or injury, or financial reasons, who have no arrears at the time of application and assessment, who are signed up to direct debit (the 'relay account') and who are repaying in monthly instalments. However, people who chose the income-contingent repayment option on a Category 1 scholarship loan awarded in fiscal year 2017 or later cannot apply. Check the exact eligibility and amounts in JASSO's official guidance.