Supporting Youth Growth Through Scholarships
Pal System, in collaboration with Group 10 cooperatives, has announced that it will provide scholarships to 12 new students as part of its ongoing initiative to support economically disadvantaged youth. The initiative, which operates under the Pal System Youth Support Fund, founded in Shinjuku, Tokyo, now has a total of 109 scholarship recipients.
This scholarship program, which received the 2025 Good Design Award, is distinct in its approach by offering not just financial aid but also comprehensive support through local organizations until graduation. This multifaceted support system is designed to assist students facing economic hardships, domestic issues such as violence and neglect, and serious family problems, ensuring they have access to necessary resources and guidance throughout their educational journey.
Monthly Financial Support
Every scholarship recipient receives a monthly stipend of 40,000 yen, funded by donations from Pal System users. Support organizations play a crucial role in this initiative, as they provide ongoing assistance and advice to students. This 'accompanying support' includes practical life consultations and emotional backing, helping students navigate their academic lives without feeling overwhelmed.
The program also emphasizes real-world experiences through agricultural activities and volunteer programs, fostering connections with diverse individuals beyond academic settings. This aspect is vital for students from underprivileged backgrounds, who often lack exposure to broader social interactions.
In addition, a portion of the collected donations is allocated to the operational costs of the 19 support organizations involved in this initiative. As of late October 2025, donations reached a remarkable 33,599,379 yen, with the cumulative fundraising total hitting 2,356,466,76 yen since the program’s inception. Furthermore, contributions from 13 corporate sponsors have significantly bolstered the operational expenses, allowing the program to thrive.
Engaging Community Support
Currently, the initiative boasts 11,675 monthly donors committed to supporting scholarship students. These supporters send numerous messages of encouragement, fostering an environment where students feel that they are not alone and are backed by a network of caring adults and organizations.
About the Scholarship Program
Established in 2019, the Pal System scholarship has undergone a two-year pilot phase before launching fully in 2021. On December 1, 2023, the program officially transitioned to the Pal System Youth Support Fund, organizing its management to ensure effective operation.
The scholarship fund is open to contributions from not only Pal System members, which include individuals from Cooperative groups across 12 prefectures, but also from businesses and private donors.
Recognized for Effective Youth Support
The program received the Good Design Award for 2025, endorsed by the Japan Design Promotion Organization, in recognition of its effective approach to providing 'accompanying support' along with opportunities for social experiences.
Judges noted that the increasing demand for such scholarships stems from the current social and economic instability affecting many families. They commended Pal System's unique customer network, which effectively supports funding acquisition and the sustainability of program activities. They observed that the initiative's collaboration with local organizations allows for sensitive and effective support for students’ emotional well-being and career planning.
Looking Ahead
As Pal System continues on its mission, it remains committed to partnering with users and various community organizations to actively support the growth and development of young individuals, illustrating the power of connection in overcoming personal challenges.
For more details on how to support the Pal System Scholarship Fund, please visit their
website.