Student Loan Fund encouraging borrowers to settle debts

[webfact]

Student Loan Fund encouraging borrowers to settle debts

 

 

BANGKOK, 6th December 2018 (NNT) – The Student Loan Fund has launched a campaign to encourage borrowers to settle their student loan debts. 

According to the Student Loan Fund, borrowers who never missed a payment and those who are still in their leniency period or two years after graduation before having to make the first payment, are entitled to a 3% reduction on their principal or the total amount borrowed if they choose to settle debts under the campaign. For instance, if the principal is 400,000 baht, 3% or 12,000 baht will be deducted, bringing the total amount the borrower has to pay for settlement to 388,000 baht. 

As for those who have missed payments, they will get an 85% reduction on interest on the day of the settlement. For example, if the interest is 100,000 baht, the amount the borrower would have to pay on top of the principal is 15,000 baht. 

The new campaign is in effect from now until May 31st, 2019. 

Chainarong Kajchapanan, the fund manager, said the fund has more than 5.51 active borrowers who owe 75.4 billion baht. The average amount borrowed is 100,000 baht per person. Of all the debtors, only 40% of them have made their payments on time. And up to 1.1 million borrowers have been indicted.

 

-- nnt 2018-12-06

[PatOngo]

5 minutes ago, webfact said:

Chainarong Kajchapanan, the fund manager, said the fund has more than 5.51 active borrowers who owe 75.4 billion baht.

I pity these five and a half people who have to pay back that much. What became of the other half of the sixth person???

[Thingamabob]

Not a chance..

[zzaa09]

A borrowed American ideal that should've never come about from the start. 

[fullcave]

Encouraging students to get themselves into debt. So, what percentage of the debtors actually graduate from school, 40%? It's a racket. 

[overherebc]

Give them all a Christmas present and write off the loans.

[GinBoy2]

Isn't it the problem that there are little or no consequences for not paying back student loans?

 

My wife had a rather visceral reaction to the Thai dentist who absconded after graduating in the US leaving behind millions of ฿ in student debt.

 

Contrast that to my wife, who went to college in the US, took out student loans, co-signed by her uncle in Chicago. I guarantee you, had she not paid those back her Uncle would most certainly have been on the hook for the balance.

 

It's a fundamental problem in Thailand, that 'borrowing' money doesn't seem to imply that you actually need to pay it back, because if you don't, generally nothing bad happens!

 

That's a mindset that needs 'adjustment'

[seajae]

biggest problem in Thailand is that people that borrow money think paying it back is optional. You only have to look at all the cars that were bought under yl's plan to refund 100,000, so many didnt pay them out but just wanted the free 100,000 or the amount of people that owe for traffic fines and refuse to pay. Anyone borrowing cash simply walk away and do not even consider repaying it. Until those that owe money are actually hunted down and have either property seized to cover the money owed or are charged/locked up if they refuse to repay it we will not see anything happen, too many people lack responsibility for what they do, seizing houses/furniture/cars etc from them and selling it would make them start to think about making repayments especially if jail time was also an option