1 million students to have their pay deducted to service loans

 

 

The Student Loan Fund Office has set a target to deduct a certain portion of the salaries paid to about one million government officials and employees of private companies who took out loans as students from the office and have defaulted on loan repayments, said the fund manager Mr Chainarong Katchapanant on Wednesday.

 

He explained that students who took loans from the fund are normally given a two-year debt moratorium after their graduation and would start repaying their loans on the third year at between 100-300 baht per month. The money would be deducted from their salaries.

 

Starting this month, officials at the Comptroller Department who took out loans from the fund while studying would have their salaries deducted to repay their debts.

 

Full Story: http://englishnews.thaipbs.or.th/1-million-students-to-have-their-pay-deducted-to-service-loans/

 

-- © Copyright Thai PBS 2018-8-1

One million workers resign from fast food outlets.

????

Good plan if all the ones with loans are employed where SS is paid so they employment can be traced, then good luck enforcing small companies of private employees to deduct and send the money.

 

The entire system is so screwed up, i am surprised they even came up with this idea

Student loan payments to be cut from salaries

By THE NATION

 

 

THE STUDENT Loan Fund (SLF) will, starting next year, deduct from the salaries of about 1 million company employees who had failed to repay loans they had taken for their studies.

 

“We will arrange for the deductions in collaboration with giant companies such as CP,” SLF manager Chainarong Katchapanan said yesterday. To date, the SLF has granted loans to about 5 million students. These recipients are required to begin repaying their loans two years after graduation.

 

About 1 million recipients have cleared all of their debts. Another million are still within the two-year grace period. But of the 3 million now required to pay back their loans, just 1 million have been doing so. The problem has prompted the SLF to explore more efficient ways to collect repayments. Among their solutions is to collect repayment instalments through the employers of loan recipients. 

 

Beginning last month, the SLF started deducting from the salaries of its loan recipients who were working at the Comptroller-General’s Department (CGD). From this month, the SLF will arrange such deductions from the payroll of all loan recipients working at agencies under the Finance Ministry. 

 

“We plan to expand the repayment programme further to cover all loan recipients working in the government sector and receiving their salary via the CGD,” Chainarong said. He added that with a very low interest rate, deductions would range between Bt100 and Bt300 only. 

 

Asked about a high-profile case in which a teacher who acted as a loan guarantor is now on the verge of losing her house and land plot, Chainarong said his office had been trying to help the teacher by summoning her students to negotiate their debts. 

 

The teacher, Vipa Banyen, had signed as a guarantor for dozens of students when they applied for a loan from the SLF years ago. 

 

Many of them had subsequently defaulted, leading to the forfeiture of Vipa’s assets. Vipa has recently called on the SLF for help. After her case made headlines, five of her former students came forward to clear their debts with the SLF. Three others have continued to default. 

 

Source: http://www.nationmultimedia.com/detail/national/30351246

 

-- © Copyright The Nation 2018-08-02

In Canada repayment of student loans, which are arranged through the student's bank, start six months after the person graduates. 

Edited August 1, 20187 yr by wotsdermatter

1 hour ago, webfact said:

 

Asked about a high-profile case in which a teacher who acted as a loan guarantor is now on the verge of losing her house and land plot, Chainarong said his office had been trying to help the teacher by summoning her students to negotiate their debts. 

Not taking her house and land, would help her more. 

But it's free money,why do they have to pay anything back.never ever lend money to a Thai unless you are a extra thick Thai or mafia.

1 hour ago, wotsdermatter said:

In Canada repayment of student loans, which are arranged through the student's bank, start six months after the person graduates. 

There used to be a similar system in U.K, might have changed now...

Loan repayments deducted automatically, unless the person was earning less than 10,000/Annum GBP... Or something like that ?

2 hours ago, webfact said:

deductions would range between Bt100 and Bt300 only.

If as previously stated the average teacher's debt is in the order of 1.2 million baht even at 300 baht per month it would take 333 YEARS to pay off the debt even at zero interest.  Once again the Thai mathematics has failed.

Their education is not worth the paper their degree is printed on. How can you expect people raised in a "no fail" no responsibility society to take responsibility for their debts?

 

This just proves that the problem is bottom up starting with the kids, their education in the institutions and the parents who just want their darlings "to have fun" rather than learn.

 

Surprised it is only 1 million.

53 minutes ago, cornishcarlos said:

There used to be a similar system in U.K, might have changed now...

Loan repayments deducted automatically, unless the person was earning less than 10,000/Annum GBP... Or something like that ?

Similar system in OZ. No repayment required until you hit a certain earnings threshold. Don't know what the amount is, and too lazy to look it up. ?

Title should be '1 million FORMER students'

(or 1 million graduates)

Edited August 2, 20187 yr by BritManToo

10 hours ago, BestB said:

Good plan if all the ones with loans are employed where SS is paid so they employment can be traced, then good luck enforcing small companies of private employees to deduct and send the money.

 

The entire system is so screwed up, i am surprised they even came up with this idea

 

One outer Thai family member, bank manager, already received notice from her ank automatic deductions will start end of August.

 

She's real pissed off; unfair, rude, laws that allow this to happen should not exist, they should get my approval first, no respect for her status... 

 

She gets a decent salary, husband also a bank manager, decent salary. Letter she received says 200baht per month salary deduction. 

1 hour ago, Prairieboy said:

If as previously stated the average teacher's debt is in the order of 1.2 million baht even at 300 baht per month it would take 333 YEARS to pay off the debt even at zero interest.  Once again the Thai mathematics has failed.

Once again non-Thai reading comprehension has failed. This article is about student loans and has nothing to do with the trillion baht teacher/government officer debt. Considering that some universities can cost as little as 10,000 Baht a year, it is feasible to graduate for under 50,000 Baht. 300 Baht will cover most student loans in around 10 years.

Corruption has to be paid for it don't come cheap anymore?

1 hour ago, SABloke said:

Once again non-Thai reading comprehension has failed. This article is about student loans and has nothing to do with the trillion baht teacher/government officer debt. Considering that some universities can cost as little as 10,000 Baht a year, it is feasible to graduate for under 50,000 Baht. 300 Baht will cover most student loans in around 10 years.

Yes i was thinking along the same lines as yourself. Problem being is will they take on further loans along the way and carry on the same process.

12 hours ago, overherebc said:

One million workers resign from fast food outlets.

????

 even students from grade one  are forced to take out loans to pay for uniforms and books in a supposedly free school./I know of orphans that upon 15 years of age are encouraged to take put loans to receive their school diploma. Since they can not pay back the loans that they have aquired in the last 10 years (normally about 20,000 baht) they have to work in assigned areas (hospital cleaners,domestics,etc)  and yjey have no protection from anything.

Former students defaulting on amounts of 100-300 baht/month?! What does that tell us?

10 minutes ago, MaxYakov said:

Former students defaulting on amounts of 100-300 baht/month?! What does that tell us?

iPhone and pickup sales are up?

16 hours ago, snoop1130 said:

He explained that students who took loans from the fund are normally given a two-year debt moratorium after their graduation and would start repaying their loans on the third year at between 100-300 baht per month. The money would be deducted from their salaries.

There is something wrong, if one cannot pay between 100 baht and 300 baht a month, even on a minimum salary that would be possible.

the whole student loan issue is getting out of control, and not just in thailand. money should not be loaned to perspective students unless they are the are a low risk of not paying it back. a housing bubbles outcome is predictable. what happens when a student debt bubble pops? my guess is something bad.

7 hours ago, DoctorG said:

Similar system in OZ. No repayment required until you hit a certain earnings threshold. Don't know what the amount is, and too lazy to look it up. ?

I think it could be around $50,000, which most students don't earn

9 hours ago, wotsdermatter said:

In Canada repayment of student loans, which are arranged through the student's bank, start six months after the person graduates. 

In Canada in the 70's I owed $400 and they threatened that my passport/drivers license renewals would be held up. Needless to say I promptly paid.