Thai student loan restructuring to begin in November, easing debt burden
The Student Loan Fund (SLF) recently announced that it will start the restructuring of student defaulters’ debts starting in November. This information was disclosed today by Chainarong Katchapanan, the manager of SLF, during a meeting with Justice Minister Tawee Sodsong. According to him, the necessary regulations required for the restructuring process will be finalised within the next month.
Tawee, the Justice Minister, highlighted that this restructuring will prove beneficial for student borrowers who defaulted as well as their guarantors. He also revealed that the Legal Execution Department would put a hold on any potential action against these individuals until the completion of the restructuring process.
This development aligns with the revised Student Loan Fund law. Notably, the interest rate on loans has been capped at a reduced 1% annually, a significant drop from the previous 7.5%. Tawee, a Prachachat MP, revealed that the default fine has also been significantly reduced, now standing at 0.5% annually, down from the whopping 18% previously.
“After debt restructuring, repayments by debtors will first be deducted from the loan principal, with payments of interest and fines to follow… This is for the greater promotion of young people’s access to education.”
It was reported that as of the previous month, the fund had about 6.58 million borrowers. Among these, 54% had not started making repayments yet, and only 28% had succeeded in completing their repayment. This restructuring initiative is expected to provide tangible relief to many of these borrowers, enabling them to better navigate their financial circumstances.
In related news, a school in Nonthaburi underwent renovations that transformed the restroom facilities. The restrooms now resemble plush, mall-like facilities in a policy that refurbished the restrooms seeking to improve student quality of life and happiness. Read more about the story HERE!
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