Additionally, there will be a repayment grace period after they graduate until they can earn a salary of more than 3 million yen ($37,500 dollars) per year.
“The government aims to ensure scholastic opportunities for the economically impoverished, especially those students affected by the earthquake or recession,” a government spokesman said.
Finance Minister Jun Azumi and Science Minister Masaharu Nakagawa agreed to include it in the budget for fiscal year 2012. The new system will be implemented in April 2012.
The current system allows a repayment grace of five years for students from low-income families. After the grace period, parents or the student must pay the loan.