Student loan delinquents to be reported to credit bureau

Friday 10th October, 11:55 PM JST

TOKYO —

A student loan provider under the supervision of the education ministry is planning to report delinquent borrowers to a bureau that logs consumer credit histories, a move that may make it difficult for them to access bank loans or use credit cards, sources close to the matter said Friday.

The Japan Student Services Organization is planning to join by the end of this year the bureau that counts around 1,400 banks and other financial institutions among its members, hoping that the step would help stem a growing number of overdue payments, according to the sources. The organization collected less than 80% of the 317.5 billion yen it needed to collect from borrowers in fiscal 2007. It also has 225.3 billion yen in loans in arrears for more than three months that are deemed to carry risks of default.

8 Comments

some14some at 03:39 PM JST - 10th October

Students? Primary school to College students? in any case, it is not fair (80% collection is not bad) to block access to credit cards in future when they graduate and get employed.
Notginger at 04:00 PM JST - 10th October

I think the normal phrase is 'default borrower'. I know that may be confusing, but that's how it is. We usually use the word delinquent to describe young, unemployed criminals. They may often be the same people but delinquent and default have entirely different meanings.
serindipity at 04:58 PM JST - 10th October

Very unfair indeed! Student loans are set up by the Government in Oz and the repayments are made through your tax after your income reaches a thresh hold. However, these loans are never used as a credit report nor are you listed as a bad credit risk if your student loan is in arrears.
Kameleon at 09:12 PM JST - 10th October

Fair enough I say: you made the choice to borrow, you need to be accountable for it. I dropped out of university because I couldn't get a loan, and that is life, live with it or in these people's case, don't pay it back and get into trouble for it.
Badsey at 07:04 AM JST - 11th October

times are tough and the purse strings must be pulled: -Pay Up!! -sooner than later of course.

Do your part and help the Japanese financials in a time of crisis. Every ¥ helps.
warispeace at 10:42 AM JST - 11th October

You just need to take a bigger and bigger loan so they have to give you access to further credit to pay off the earlier loan.
LIBERTAS at 07:00 AM JST - 12th October

There is NO enforcement mechanism to collect either debt or fines in Japan. That means the mob will be re-employed to "make'em an offer they can't refuse!"
Molenir at 10:19 AM JST - 12th October

Wait, hold on. Does this mean guys are gonna have their legs broken, and girls be forced into prostitution? Or is it just the yaks that do that still.