Thailand student loan defaulters face 3,000 baht salary cuts
Thousands of student loan borrowers are in for a financial shock as the Student Loan Fund (SLF) prepares to slash an extra 3,000 baht from monthly salaries — and it’s all starting this month.
The move has sparked a storm of confusion and concern among debtors, many of whom claim they’ve been making payments regularly. But according to the SLF, the new deduction targets one group only: borrowers with overdue payments.
Nanthawan Wongkhachornjit, manager of the SLF, confirmed the plan.
“The extra deduction applies solely to those who have not cleared their overdue debt by July each year.”
Those affected can expect the new deduction to kick in this month.
The uproar began when a letter from the fund went viral, outlining the deduction and leaving borrowers worried and scrambling for answers.
One borrower questioned online, “Why are we being charged more when we’re already paying?” He echoed the sentiments of many.
Nanthawan stressed that the deduction is not a blanket policy.
“Only borrowers with unresolved overdue debts will be impacted.”
She added that the initiative aims to encourage financial responsibility and improve the fund’s long-term sustainability.
Borrowers are being urged to check their repayment status via the SLF mobile app. The platform provides details on overdue amounts and repayment options.
To ease the financial burden, the SLF is offering flexible repayment solutions. Those struggling to meet their obligations can restructure their loans through the official website and may be eligible to extend their repayment period by up to 15 years.
The fund is also encouraging borrowers to act quickly to avoid additional penalties. By restructuring their loans or settling outstanding balances promptly, they can reduce interest and late fees and avoid the dreaded salary deduction, reported Bangkok Post.
The SLF manages billions of baht in loans distributed to students across Thailand. While the aim is to support educational access, the growing backlog of unpaid loans has prompted tighter enforcement measures.
With deductions set to begin this April, those in debt now face a clear choice: pay up or prepare for smaller pay packets.
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