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Japan to raise parents' income cap for subsidizing college education

Japan's education ministry has decided to raise the income cap for families with three or more children that can receive financial support for higher education such as universities.

The support includes reductions in tuitions and non-refundable scholarships.

The annual income cap for a household will be raised to about 6 million yen, or about 45,000 dollars, from April next year. The benefit is currently available for households with incomes of about 28,600 dollars or less.

Under the new plan, families in the new higher bracket will be able to receive financial aid equivalent to one-fourth of that given to the low-income families that are exempt from paying local taxes.

Families within the new income cap are also eligible to receive extra aid even with one or two children if they major in science, technology or agriculture at private schools. This aid is to compensate part of fees for such faculties, which are higher than those for liberal arts courses.

The ministry says about 200,000 students will newly become eligible.

The education ministry has also decided to introduce a new system to allow payments of school fees after the students graduate. The system will initially start in autumn next year for first-year students in master's degree courses. The benefit recipients will have to start to repay the financial aid when their annual income reaches about 22,500 dollars. But depending on the number of their dependent children they could be exempt from repayments until they reach a higher income level.

Source: https://www3.nhk.or.jp/nhkworld/en/news/20230405_01/