□ Development of Student Loan Credit Scoring System Completed

 On May 24, KHFC announced that it had completed development of a student  loan credit scoring and monitoring system for the government-guaranteed student loan program, and it will become operative in the second semester of 2006.

 The Student Credit Scoring System does not incorporate income or occupation information often used by regular financial institutions; instead, it utilizes financial transaction information and school information of university students. Most importantly, students from low-income households are not necessarily rated poorly because of their income level.

 The development of the credit scoring model means that credit ratings can be performed on student loan applicants and those with high credit risks may be rejected to prevent erosion of funds. In addition, various risk management factors may be analyzed through monitoring.