Number of universities barred from student aid doubles to 20

The number of universities barred from government scholarships and student loans will double to 20 in the 2027 academic year. The photo shows a student applying for a student loan. [Newsis]

The number of universities barred from government scholarships and student loans will double to 20 in the 2027 academic year, up from 10 two years ago.

The Ministry of Education said Monday that 288 universities will be eligible for student financial aid in the 2027 academic year, while 20 will face restrictions. Of those 20, 16 are subject to full restrictions — meaning students cannot receive government scholarships or student loans of any kind — while 4 face partial restrictions, allowing only standard repayment student loans.

The 16 fully restricted schools comprise 8 four-year universities and 8 two-year colleges. The four-year universities are Geumgang University, Daegu Arts University, Shin Gyeongju University, Yewon Arts University, Jeju International University, Korea Baptist Theological University, Hanil University and Presbyterian Theological Seminary, and Hwaseong Medical Science University. The two-year colleges are Gwangyang Health Sciences University, Naju University, Busan Arts College, Seo Young University, Songho University, Yeoju University, Yeungnam University of Foreign Studies, and Wungji Tax Accounting College.

Among these, Seo Young University and Yeoju University were newly designated as fully restricted schools for the 2027 academic year. Gwangyang Health Sciences University is scheduled to close on Monday.

The four partially restricted schools are two four-year universities — Sangji University and Chugye University for the Arts — and two two-year colleges, Gukje University and Daeduk University. All four were newly classified as partially restricted for the 2027 academic year. Students newly enrolling or transferring to partially restricted schools will be ineligible for government scholarships and income-contingent repayment student loans, and may only access standard repayment student loans.

A notice on student loan applications posted at the Korea Student Aid Foundation. [Yonhap]

Meanwhile, three schools that were fully restricted in the 2026 academic year — Catholic Kwandong University, Yeungnam Theological University and Suwon University of Science and Technology — have been reclassified as eligible for 2027. Gukje University, which was partially restricted in 2025 before regaining eligibility in 2026, has been placed back on the partially restricted list for 2027.

Eligibility for student financial aid is determined by combining institutional accreditation results and fiscal health assessments of private universities. Schools that fail accreditation are barred from all government scholarships and student loans regardless of their fiscal standing. Schools that receive full or conditional accreditation but are classified as financially distressed in the fiscal assessment are permitted only standard repayment student loans.

The measures will in principle apply to students newly enrolling or transferring in the 2027 academic year. Current students may continue to access government scholarships and student loans, but those who enrolled in the year a school was first designated as restricted will remain subject to restrictions if the school receives consecutive restricted designations. If the scope of restrictions is eased, the more favorable terms will apply to students.

Lee Hae-suk, director general for higher education and lifelong learning policy at the Ministry of Education, urged prospective students and parents to check the list of eligible and restricted universities for the 2027 academic year before making their final enrollment decisions.

brunch@heraldcorp.com