Jump to content
Login with your Gmail HERE and start posting in seconds! ×

Thai student loan takers cite low income and misunderstanding in failure to repay loan

webfact

By webfact
in Thailand News

 Share

Recommended Posts

plachon Gold Member

plachon

Posted
Posted

Actually for those familiar with this scheme, it is not surprising that many students hoped it would not have to be repaid. It was sold to them by the government as a "free university education". The interest rates were so low that the longer they waited to repay, the less they would owe as the rates were under inflation.

Like many stories in the news here, you need to look behind the headlines to get the real story.

It was a scheme already in operation that really got ramped up 15 years ago. It allowed politicians in the education industry to receive huge amounts of income by pushing more M.6 students from the rural areas into cheap, private universities. Tuition fees were paid direct to the universities.

It allowed local politicians to be bought by the above bigger politicians. The big ones would go into an amphoe in e.g. Kalasin and say, "Give me 1200 M.6 kids and I'll give them a free degree." Massive building of patronage networks and lots of activity in the favour banks.

It gave 1000's of students a piece of paper that said Bachelor's degree allowing them to apply for jobs they would not have been able to apply for otherwise. No discussion was made about repayment. But I am sure there was something in the contract they signed. Certainly the impression was that repayment could be postponed indefinitely.

I think you've probably just about nailed a lot of the impetus to roll out the education soft loan scheme in your post. Another factor not mentioned, was the 15 + year long programme to build new universities and upgrade existing ones massively, so that virtually every province had at least one university, some 3 or 4, which filled the coffers of private contractors, politicians and govt officials alike in the opportunities for graft and embezzlement. It was a feeding frenzy, fed especially to the patronage networks of Thaksin during his reign of power, the likes of which will probably never be experienced again in Thailand, as there is now clearly a huge glut of both academic institutions and classrooms. But at the time, as you say, they needed to put bums on seats in the new concrete monstrosities and the loan scheme for every M6 student and ex-vocational college student, no matter their aptitude for academic study at degree level, was the solution. Hence, many students probably didn't understand that they would have to pay the money back, it was so easy to obtain and in any case, their parents are forever having their debts written off by the Tor Gor Sor, every time a new govt wants to woo their vote, so why shouldn't it be the same for students? facepalm.gif

Link to comment
Share on other sites
  • Popular Post
Pimay1 Platinum Member

Pimay1

Posted
  • Popular Post
Posted

I found out early on that loaning money to a person in this country and expecting to be paid back is synonymous to buying a lottery ticket and expecting to win. And I am not bashing anyone.

  • Like 3
Link to comment
Share on other sites
Pimay1 Platinum Member

Pimay1

Posted
Posted

or they were of the understanding that the loan did not have to be repaid.

I would suggest this is the typical of the average student leaving university - understanding nothing

Do they understand what the word LOAN actually means?

I reckon they do.

Link to comment
Share on other sites
casualbiker Platinum Member

casualbiker

Posted
Posted

From what I can make out the paperwork can be VERY confusing. My wife is paying hers. But yearly lump sum not monthly. It would seem the first 5 years or so are low but ramp up as the loan term progression. I might ask her more tonight.

Lender is a government revolving fund.

Sent from my XT1032 using Thaivisa Connect Thailand mobile app

That is sensible - as the person gets older their salary increases so they can afford more to repay

Turns out she changed it to monthly pay last year.. 1,250b a month for 9 years (125k value) she didn't like the ramp up in the final few years on the old system.

Sent from my XT1032 using Thaivisa Connect Thailand mobile app

  • Like 1
Link to comment
Share on other sites
Cake Monster Ruby Member

Cake Monster

Posted
Posted

Why do the students take a loan in the first instance.

Get a loan, pay a load of money to go to a Thai University, get a " degree " which is only recognised in Thailand from the university, and end up in a poorly paid job where it will take a minimum 10 years to even pay back the initial capital outlay of obtaining the degree.

Degrees needed in basic economics I think.

  • Like 1
Link to comment
Share on other sites
casualbiker Platinum Member

casualbiker

Posted
Posted

Why do the students take a loan in the first instance.

Get a loan, pay a load of money to go to a Thai University, get a " degree " which is only recognised in Thailand from the university, and end up in a poorly paid job where it will take a minimum 10 years to even pay back the initial capital outlay of obtaining the degree.

Degrees needed in basic economics I think.

Because if they don't. They won't get any job!

Sent from my XT1032 using Thaivisa Connect Thailand mobile app

Link to comment
Share on other sites
  • 3 years later...
rkidlad Platinum Member

rkidlad

Posted
Posted

I knew a bird here who bought a pick-up truck. She said she had to pay back 11k a month for 5 years (don’t quote me on the figures). Anyhoo, she then went on to explain that there were also insurance, maintenance and fuel costs on top. It was all, “too much” to quote her. It was all so unfair. 

 

There is a person who clearly doesn’t understand how borrowing and repaying works. There are many, many more like her. 

  • Like 1
Link to comment
Share on other sites
Guest
This topic is now closed to further replies.
 Share
Go to topic listing

  • Recently Browsing   0 members

    • No registered users viewing this page.










×
×
  • Create New...