The BOJ's decision on 16 June raised the policy rate to 1%, affecting the repayment interest rate on income-contingent scholarships. The interest rate on the standard monthly amount may rise to 2.922%, while the rate on the additional amount portion may rise to 3.1%.
The repayment interest rate on scholarships provided by the Japan Student Services Organization may change following the BOJ's decision to raise the policy rate to 1%. Type 1 is interest-free, while Type 2 bears interest, and changes in the interest rate are expected to affect repayment amounts for Type 2 scholarships. The cap is set at 3.0%.
According to data released by the Japan Student Services Organization, its fiscal 2026 lending-rate table shows an annual interest rate of 2.922% for the standard monthly amount under the fixed-rate method, and 3.100% for the additional amount portion under the fixed-rate method. This creates a situation in which the 3.0% cap could be exceeded.
It has been explained that when the interest rate on the additional amount portion exceeds 3.1%, the Fiscal Loan Fund rate applies, and that in some cases 3.1% is the cap within the 2.9% to 3.1% range. There have also been reports of efforts to reduce the repayment burden after employment progressing in Fukui Prefecture and elsewhere.