Government to lose ฿6bn revenue per year if student loans are interest free

[webfact]

(File) Deputy Government Spokesperson, Rachada Dhnadirek

The government will lose about 6 billion baht in revenue per year if students with loans from the student loan program are exempted from paying interest and fines, in case of default, according to Deputy Government Spokesperson Rachada Dhnadirek.

 

The House of Representatives recently approved, by a majority vote, a draft Bill on the student loan fund, which seeks to exempt interest on loans extended to students, as well as fines in case of repayment default. The draft bill will next be deliberated in the Senate.

 

According to Rachada, the government has extended 702.31 billion baht in loans to 6,284,005 students since the student loan program was launched in the 1998 academic year, after the cabinet agreed on January 16th, 1996 to create the student loan fund, which is a legal entity.

 

Full story: https://www.thaipbsworld.com/government-to-lose-6bn-revenue-per-year-if-student-loans-are-interest-free/

 

-- © Copyright Thai PBS 2022-09-26

 

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[ChrisY1]

Does anyone ever repay these "loans"?

[rbkk]

Didn't the U.S. recently decide to do the right thing and refund charged interest back to the students? 

[kingstonkid]

2 hours ago, rbkk said:

Didn't the U.S. recently decide to do the right thing and refund charged interest back to the students? 

That is not the right thing.

 

The right thing is to limit the number of people that qualify for loans and to limit the increases that universities and colleges can charge.

 

The problem for a lot of students is they get loans to go to universities that have o standing, and they will never be qualified to get a job with the degree.

 

The other issue is that they give loans to all students even if they are not qualified or cannot complete the courses.

 

Somchai goes to the University of mickey mouse in Southern Thailand and gets a degree in Aerospace engineering.  Do you think he will get a job considering that he never sees a plane?

 

Kids in the states are getting loans so that they can get a degree in undersea basket weaving.  how much money do you think is the annual pay for an undersea basket weaver?

 

Here is an article with the highly employable course offered at American universities

 

How to watch TV

Feminist studies through Beyonce

Close Encounters of a Multidisciplinary Kind

 Surviving The Coming Zombie Apocalypse

There is more but you have to read this to get the picture

 

https://plexuss.com/n/underwater-basket-weaving-beyonce-college

 

 

 

[Sydebolle]

Maybe, just maybe:

• get less toys for the army, air force and the navy
• allow any Thai citizen to study free, provided the student is finishing the programme within the earmarked framework of subject and duration

As things stand now, it seems to be even a profitable business to the tune of 6,000,000,000 Baht. The quoted figures result in approx. 110,000 Baht per student. Well, I call this modern slavery; once the youngsters are out of education, the first thing is to work on repaying an average debt of 110K with a salary of 10K-15K gross a month. It does not require rocket science abilities to see where this is heading. 

The next generation(s) of this country will be equally shafted if nothing changes. The present beneficiaries of the status-quo though will be seeing rapid changes over time as the whole thing will backfire sooner or later, unless the issue is addressed in such a way, that also Thailand educates its people to their intellectual and not financial abilities; see Scandinavia or German-speaking Europe and then you will no longer wonder, why these countries have successful and profitable industries. 

[rbkk]

1 hour ago, kingstonkid said:

That is not the right thing.

 

The right thing is to limit the number of people that qualify for loans and to limit the increases that universities and colleges can charge.

 

The problem for a lot of students is they get loans to go to universities that have o standing, and they will never be qualified to get a job with the degree.

 

The other issue is that they give loans to all students even if they are not qualified or cannot complete the courses.

 

Somchai goes to the University of mickey mouse in Southern Thailand and gets a degree in Aerospace engineering.  Do you think he will get a job considering that he never sees a plane?

 

Kids in the states are getting loans so that they can get a degree in undersea basket weaving.  how much money do you think is the annual pay for an undersea basket weaver?

 

Here is an article with the highly employable course offered at American universities

 

How to watch TV

Feminist studies through Beyonce

Close Encounters of a Multidisciplinary Kind

 Surviving The Coming Zombie Apocalypse

There is more but you have to read this to get the picture

 

https://plexuss.com/n/underwater-basket-weaving-beyonce-college

 

 

 

Education is sometimes not about the money you can earn but about bettering yourself. Example; the Open University (UK).

[poskat]

this spending is only seen as a problem by the government because there are no opportunities for backhanders in it,

[hotchilli]

4 hours ago, ChrisY1 said:

Does anyone ever repay these "loans"?

Only if someone comes knocking on your door.. and you say you're home.

[Srikcir]

This article should read "Military to lose 6Bn baht annually in government budget allocations to fund education interest on loans and student fines for default." Military budget is bloated beyond its needs. Might have to cut back conscription.

For the nation as a whole 6Bn is really not much money.

Note that it's not forgiving student loans per se. Failure to pay loan principle impacts credit for future bank loans such as for autos, home, education, etc. But at least in the interim  student has better chance to pay loan principle

[French mate]

13 hours ago, ChrisY1 said:

Does anyone ever repay these "loans"?

Its depend, in my thai familly they have 2 cases of those loan made about 20 years ago and who havent be honored.

First case, the man got regular job and paid tax : the governement have come knock his door something like 5 years ago and treat him of take what he have in his name (a car) as compensation. He ended with a deal where he paid back a little every month (from last news he still paying).

Second case, the lady dont have a declared job (she have an unregistred  "at home style" small restaurant) , but she have a house, a car and motorbikes in her name. And nobody have come asking her anything so far.

The resulting theory is : as long you dont paid income tax, you wont be bothered.

[JackGats]

There is an interesting take from the manosphere on the cancellation of student loans in the US: since the majority of students who end up getting into debts in order to get mickey mouse degrees are women, debt cancellation amounts to another net transfer of wealth from men to women.

 

Likewise, encouraging women to study for often useless degrees is a way of removing youngish women from the sexual market, because women with degrees tend to consider themselves too good for sex-trading of the traditional kind.

 

Men getting the short en of the stick.

 

 

[kingstonkid]

23 hours ago, rbkk said:

Education is sometimes not about the money you can earn but about bettering yourself. Example; the Open University (UK).

Agreed but money is the issue 

 

The universities are charging through the nose and have no control over them.  They know that the kids can get the money from the government so they can keep raising fees.

 

There has to be a method of setting a max that universities can raise prices much as there are limits on how much a landowner can raise rent.

 

Students need to learn more about universities like Open and realize that they can get their degree and have a job on the outside.

 

At least in Western society, kids can get part-time jobs and earn some money to help with the costs.  Parents earn enough to put away money for their kids.  Universities are restricted and regulated so they have to be providing a functional graduate.

 

The government has to step in with programs that will assist worthy grads in lowering their debt.  An example would be that teachers if they qualify with marks could have a certain portion of their student loan forgiven if they go to Issan or other areas in need of teachers to teach for a set period of time.

 

 

[rbkk]

1 hour ago, kingstonkid said:

An example would be that teachers if they qualify with marks could have a certain portion of their student loan forgiven if they go to Issan or other areas in need of teachers to teach for a set period of time.

This has already been implimented in certain areas. I personally have known a teacher for over 20 years who took up his position in Isaan purely for the extra salary on offer at that time. The same, I think, is currently happening if you choose to go to the South.

 

2 hours ago, kingstonkid said:

kids can get part-time jobs

Agreed. My 17 yrs old daughter set up her own live-streaming store on Shopee. It has enabled her to buy her own Ipad and Iphone this year. Her classmates are in awe of her but nobody else has done the usual Thai thing and copied her idea for themselves. You can lead a horse to water but you can't make it drink.   

[BangkokReady]

On 9/26/2022 at 2:07 AM, webfact said:

The government will lose about 6 billion baht in revenue per year if students with loans from the student loan program are exempted from paying interest and fines, in case of default

How much does the government typically pay on subsidies to keep prices down/up to placate the masses?

 

Maybe let the Thai populace live in the real world, tax everyone accordingly, then provide better education across the board?  I'm not sure why a people that demand the latter never seems to want to accept the former.

[JamesAlly]

I agree with you that it is necessary to review the categories of students and change the rules for issuing loans. You need to be sure that after university you will have a job and you will be able to repay these loans. As a student, I am confident and do everything for it. I use https://graduateway.com/essay-examples/tuesdays-with-morrie/ to improve my grades and successfully graduate from university

[scorecard]

Here's a thought; perhaps there should be more discussion about highly subsidized education at all levels to help increase the countries capabilities, and along with highly subsidized a scale of charges;

 

'At end of academic year students with 4 A grades get 100% reduction on a notional study fee and etc.,

 

But what would also be needed is a method of scoring students who work very hard / study seriously but because of their natural abilities don't get many As.