The Chung Mong-koo Foundation of Hyundai Motor Group said Wednesday that it will accept applications from college students for a tuition fee loan program, which offers low interest rates.

“For the second semester, students will be allowed to enjoy college loans with interest rates that range between 0 and 3 percent per annum,” the automotive group said in a statement.

The program is designed to support students struggling with high-interest loans from the secondary banking sector or private moneylenders.

By acquiring their former debts with high interest rates, the foundation is seeking to prevent some students from becoming credit-delinquent, the company said.

The social foundation has signed a pact with the Ministry of Education, Science and Technology on information exchanges and close collaboration for the businesses, while forging a loan contract with some commercial banks.

“Over the next two years, about 13,000 college students will enjoy the educational support,” a Hyundai spokesman said.

By Kim Yon-se (kys@heraldcorp.com)