Thai Teacher's Loans

[serasan]

I would be grateful for some opinions and experiences on my situation.

My fiancee and I are due to get married in May and then move to UK. She has a school loan and a bank loan. Initially her director said that they have to be paid in full before she can finish teaching. Then she was told that she could continue paying these loans when she leaves Thailand. Then typical Thai style, at the last minute, she has been told that these must be paid in full before she can finish teaching!!

Has anyone had experience with this ?? I do not want to pay these loans off, but to continue paying them monthly as before.

Should I contact a Thai lawyer ?

Paul

[Farma]

It sounds like she has a teacher’s credit union/Co-op type loan and a bank loan. 2 loans. It may be worth asking exactly who these loans are with.

If the Teachers loan is similar to the loan scheme of another government department I’m familiar with, she will also have shares in the account that enabled her to take out the loan. The share value held as a deposit will be a percentage of the loan amount.

These Co-op type loans are usually restricted to the province the person works in. The loans have to be cleared if the person quits or permission granted to transfer the loan to another province Co-op if the person is transferred. In this case it sounds like she has to clear the loan.

If the other loan is a bank loan I can’t see why she couldn’t keep repaying it as usual after she quits. She would need to check with her bank.

[Farma]

One more thought on the bank loan.

She may have used a person from the school as a guarantor when taking out the bank loan. That person could be worried about the loan repayments once she leaves Thailand and is asking for the loan to be cleared.

[bruceboy]

Banking in Thailand usually involves more than just signing ones name. Often much like an onion comes to mind.

[Ijustwannateach]

I don't see what they can really do to stop her from leaving without paying (I suppose there is something like a 'credit rating' they can slash, or they could make a legal complaint)- I would ask a lawyer to look at the paperwork which was signed when the loan was made. If it legally requires her to keep working until the loan is paid, then it could result in negative consequences if she doesn't pay back and ever plans to return to Thailand. Otherwise if it simply says she has to make regular payments, I don't see that she has any obligation to keep working as well as pay, or that the school has any legal hold on her (though they could make trouble over recommendation letters, etc.). Best to settle things amicably if you can.

[Farma]

Just a little background info on the professional association loan I was referring to. In my case one of the medical associations. For ease I’ll refer to it as a Co-op.

These loans are administered and controlled through an office in the applicable departments provincial HQ. The interest rate is slightly lower than that offered by banks.

To obtain a loan the person has to purchase shares in the Co-op of the province they are employed in. The number of shares reflects the amount a person can borrow with an upper limit placed on the borrowing amount. This share value is kept as a deposit for the period of the loan.

A guarantor is required when applying for a loan. Loan repayments are made through payroll deduction only.

Conditions of the loan include full repayment on cease of employment.

In the case of transfer to another province the loan account with Co-op's approval is transferred and then falls under the new provinces administration.

After each 6 month period an additional amount can be borrowed to take the loan amount back up to the original limit.

[Ijustwannateach]

Thanks for your personal experiences, Farma! If the OP's friend's loan is like yours, I guess she's technically required to pay when she leaves, if they won't give her more flexibility.

[serasan]

Thanks for your comments.

By the sounds of things, it seems as though she has a co-op loan very similar to your medical loan. She does pay this back through her salary and I can understand the need for this to be repaid upon leaving employment.

I do not understand why she has to repay her bank loan though, even if she has guarantors.

I think I will seek the advice of a Thai lawyer.

Many thanks for your posts.