Student Loan Fund recalculates debt repayment to reduce 100 billion baht bad debts

[webfact]

With a staggering 100 billion baht (US$2.8 billion) in bad debts, the Student Loan Fund (SLF) is set to see a decline in its debt pile following the implementation of a new debt repayment calculation method, according to SLF manager, Chainarong Kajchapanan.

 

This change is a result of the recent amendment of the Student Loan Fund Act (No.2) 2023, which came into effect last year on March 20.

 

Previously, repayments made by debtors after a default were primarily directed towards offsetting default charges, followed by overdue interest and principal payments. This system often resulted in minimal payments towards the principal debt. The new calculation method, however, prioritises loan principal repayments, followed by overdue interest and default charges.

 

This significant shift in payment structure is further augmented by changes in the interest rate and default charge. The interest rate has been altered from a fixed 1% per year to a fluctuating rate capped at 1% annually. Simultaneously, the default charge has seen a drastic reduction from 7.5% to 0.5%, reported Bangkok Post.

 

Chainarong believes that these recalculations will substantially lessen the debt burden on borrowers, thus encouraging more repayments.

 

Full story: The Thaiger 2024-02-01

 

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[mfd101]

To a layman that looks like gobbledegook for: Let's all pretend we've solved the problem.

[hotchilli]

21 hours ago, webfact said:

With a staggering 100 billion baht (US$2.8 billion) in bad debts, the Student Loan Fund (SLF) is set to see a decline in its debt pile following the implementation of a new debt repayment calculation method, according to SLF manager, Chainarong Kajchapanan.

Most countries would say this loan scheme is a tad out of control..

Students taking out loans to pay for an education they cannot afford, with little prospect of employment after graduation and thus little chance of repaying said loan.. 

Needs a major re-think.

[prakhonchai nick]

Re-calculates the debt........or cooks the books????????😁

[john donson]

what if a student rakes up a lot of debt and then marries a farang and move there... will thailand put her on red notice... where even mr ferrari is not to be found...

[Dan O]

Actually if they do what they are saying its the snart thing and reduces debt much quicker.   Big if though