Student loan and credit risk in Korea

- We analyze factors affecting default of student loans in Korea, using nationwide data.
- Default of student loans is a function of gender, major, loan amount, etc., being consistent with prior studies.
- The effect of age and marital status in our analysis is not consistent with prior studies.
- We first document new variables affecting student loan defaults such as grace period and repayment period.

This study first analyzes factors affecting default of student loans in Korea, using nationwide data. Default of student loans is a function of gender, major, loan balance, etc., being consistent with prior studies. However the effect of age and marital status in our analysis is not consistent with prior studies. We first document new variables affecting student loan defaults such as grace period and repayment period.