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Students urged to repay education loans


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EDUCATION
Students urged to repay education loans

The Nation

BANGKOK: -- Prime Minister Yingluck Shinawatra on Friday chaired an event to mark a new initiative in forcing student loan borrowers to pay their debt.

Starting in 2014, all students finishing their studies with government loans will appear on the list of debtors compiled by the national Credit Bureau. Their repayment records will now be taken into account when they apply for other types of loans at financial institutions.

Yingluck urged all those students to repay their debt, so that the government can channel the fund to younger students. It is the government’s duty to provide equal access to education to all, she said.

According to the Finance Ministry’s data, about Bt20 billion of student loans have been overdue, from outstanding loans of Bt50 billion. Without repayments from these students, the student loan scheme faces liquidity shortage and seeks a higher budget. For the 2014 fiscal year, Bt17.5 billion was allocated to the scheme, enough for only 35,000 students. In the previous years, loans were extended to over 200,000 students per year.

Since the scheme was kicked off in 1996, a number of 4 million students have obtained loans.

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-- The Nation 2013-08-30

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Govt tightens screws on student-loan defaulters
The Nation

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BANGKOK: -- The Finance Ministry will alert the National Credit Bureau (NCB) about student-loan defaulters in the next five years.

Deputy Finance Minister Tanusak Lek-uthai yesterday announced the plan to involve the NCB in efforts to improve the performance of the Student Loan Fund.

More than 2.2 million recipients of student loans have either failed to repay or have fallen behind in their repayments.

"To the defaulters - you have five years to clear your name. If you fail to do so, we will forward your default information to the NCB," Tanusak said. Bad records at the NCB would affect their financial credibility.

Tanusak was speaking at an event where the Student Loan Fund and its allies signed an agreement on cooperating to improve the financial discipline, conscience and ability to repay of student-loan recipients.

"The Student Loan Fund is a revolving fund. When you repay, younger children get the loan they need for their education," Prime Minister Yingluck Shinawatra said.

Tanusak said the Student Loan Fund and its allies would now jointly develop a database on student-loan recipients to boost their employment opportunities.

He expected employment to raise the loan recipients' chances of making repayments.

He said the Finance Ministry had also asked the Revenue Department to study the feasibility of setting up an agency to automatically deduct loan recipients' income for repayment to the Student Loan Fund.

Central Retail Corporation, which is among the Student Loan Fund's allies, said it had more than 1,000 jobs for fresh graduates and students interested in working part time.

Student Loan Fund manager Thitima Vichairat said her agency would soon offer special deals for loan recipients who come forward to settle their debts.

"Defaulters who intend to repay all their debts will be waived the default fine and get a 50-per-cent discount on the interest charges."

She said defaulters who contact her agency to arrange repayments would also be exempted from paying a fine, but without any interest discount.

"The special deals will be valid between November this year to March next year," she said.

Thitima said loan recipients who had made regular repayments would be offered a good deal during the period, too.

If they clear all their debts during the period, they would see a 3.5-per-cent discount on the principal amount, she said.

Speaking on condition of anonymity, a loan recipient admitted he had not made any repayment instalment until a court order arrived instructing him to negotiate his debts with the Student Loan Fund.

"With the court order coming, I am worried that perhaps my assets will be seized if I don't repay," the man said. He had renegotiated his debt, and was now only required to pay Bt1,500 instalments per month for nine years.

He said he sought the loan to finance his education from Mathayom 5 to bachelor's degree level. The principal amount is about Bt140,000.

Khanittha Thepphajorn, a loan recipient who has made regular repayments, said she planned to clear all her debt by January 7, well ahead of schedule.

"I have always earmarked money from my salary for repayment first because I know the student loan has allowed me to reach where I am today. With my repayment, other children will enjoy similar opportunities," she said.

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-- The Nation 2013-08-31

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It must be quite a loan system if 17.5 billion only can make loans to 35,000 students per year. (500,000)

The finance ministry is throwing numbers around again, we have their past track record to consider before accepting anything they say as true. Wonder how many on government payroll have debt to this program?

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Why should students pay back loans? Look at the examples of their elders - who skirt and avoid responsibilities every chance they get. Kids learn from their elders, and the lesson in Thailand (particularly from the Shinawatre clan) is: don't pay taxes and run from the law. Also, if you don't like the findings of the courts, then you don't have to abide by them.

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Are the government really so broke, that the late/non-repayment of these loans, is having such a severe impact on their ability to grant further loans ? wink.png

Perhaps PM-Yingluck should delegate administration of the loans to BAAC, who can run hundreds-of-billions short, safely knowing that their borrowing-limits will merely be increased, regardless of her governments' inability to pay them back ?

Problem Solved ! laugh.png

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I'm surprised!!! tongue.png

All Thai should know that the "pay back"-part of a loan is not in the Thai dictionary.

There was a time when all my in-laws wanted to borrow money from me. I never got paid back. They are not my in-laws any more. My new girlfriend needed money for her mother and would pay me back. Now I don't have a girlfriend. I don't loan money to anyone, but I live alone in a condo. If you get to close to anyone, they want a loan. Even the guy who used to take me to the airport wanted a loan. I use a new driver. If you ever know anyone well enough to ask for a loan then you have to say no. And then find somebody else to do the job for you. People here, Expat or Thai, don't pay loans back. Don't learn the hard way like I have. Just say no to loans to anybody. Because they have no intention of paying you back.

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I'm surprised!!! tongue.png

All Thai should know that the "pay back"-part of a loan is not in the Thai dictionary.

There was a time when all my in-laws wanted to borrow money from me. I never got paid back. They are not my in-laws any more. My new girlfriend needed money for her mother and would pay me back. Now I don't have a girlfriend. I don't loan money to anyone, but I live alone in a condo. If you get to close to anyone, they want a loan. Even the guy who used to take me to the airport wanted a loan. I use a new driver. If you ever know anyone well enough to ask for a loan then you have to say no. And then find somebody else to do the job for you. People here, Expat or Thai, don't pay loans back. Don't learn the hard way like I have. Just say no to loans to anybody. Because they have no intention of paying you back.

they ask me for loan also as with family i always refuse to loan but will give some if they really need it

if they want to pay back fine if not no hard feelings , comes with the rule if i ever need my field to be done ploughing or other hard work i will ask them and usually they stop what they are doing and help me right away

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What I'm shocked about - is that defaulting on your loans to the government (which is what a student loan really is), didn't already show up in their government credit report.

Add in, they're only putting it on there after you fail to pay for 5 years...

P.S. For 2.2 million to be delinquent on their loans already, they must lend to more than 35,000 students each year.

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'"The Student Loan Fund is a revolving fund. When you repay, younger children get the loan they need for their education," Prime Minister Yingluck Shinawatra said.'

Nonsense. It is the govts responsibility to provide all students with loans they are entitled to. If previous students don't pay them the govt should top up the fund to ensure others do not suffer. As for punishing those who do not repay, the govt needs to ensure there is an economy they can get decent paying jobs in and earn enough to repay loans. This idea of a revolving scheme completely dependent upon previous loans being repaid to ensure students get the money they require to further their education is almost as moronic as the rice scheme. Almost----

Edited by Bluespunk
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I guess there is no money left in the country's coiffers as the PT cronies have bled them dry already, so they are chasing the car dealers and the students - anyone who owes money so that they can get more to line their pockets. By the time enough people understand what's going on, the country will be left a rotting carcass of its former self !

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