Student loan recipients will have their monthly pay cheques deducted to repay their loans

[webfact]

Student loan recipients will have their monthly pay cheques deducted to repay their loans



BANGKOK: -- Students who took government’s educational loans will find it almost impossible to skip their loan repayments after graduation because they will have the repayment instalments deducted from their pay cheques by their employers.

The cabinet on Tuesday approved the education loan fund bill which will force employers in government and private sectors to deduct the loan repayment on instalment basis together with personal income tax from the salaries of their employees who took the government’s educational loans to further their studies.

Finance Minister Apisak Tantiworawong said Wednesday that this proposed legislation which is pending the approval of the National Legislative Assembly would enable the education loan fund to reclaim money from loan recipients so that there will be enough loan to be extended to needy students.

The money which was deducted from the salaries of the loan recipients will first go to the Revenue Department and eventually to the student loan fund.

Last year alone, the fund received 17 billion baht in repayments from the loan recipients and it was projected that the amount will increase to 19 billion baht this year.

About 60,000 government and local officials now still owe the loan fund.

Source: http://englishnews.thaipbs.or.th/content/153241


-- Thai PBS 2016-03-02

[canopus1969]

Good idea but what about the 60,000 government and local officials now still owe the loan fund. - when are they going to have their salary stopped ?

[colinneil]

Maybe they will skip the country and go to the USA, then put up 2 fingers at Thailand.

The same as a certain lady in the USA is doing.

[Nigeone]

And wasn't there a news article on TV the other day about unemployment and the highest group is people with degrees !??

[shirtless]

Stupid plan , what about self employed , or being paid in cash, working for family,

[rubl]

Stupid plan , what about self employed , or being paid in cash, working for family,

don't be too impatient. surely it will come. This new bill is a step in the right direction.

[Bluespunk]

Will there be a wage threshold on when payment deductions can start to take place?

If someone is just starting out and is on a lower pay scale they may not be able to survive on their wages with such deductions.

[SOTIRIOS]

....as for a certain dental student and 1 million dollars......

....since when does it cost 1 million dollars to get a degree in dentistry....

...another...... !@#$%^&*(.......by any other name.....

[Srikcir]

How will the government assure that loan deductions made in the private sector are actually forwarded to the government?

Without some accountability there is potential for employers simply to pocket the wage deduction. This idea needs more thought.

[little mary sunshine]

Common sense approach. In The States they attached tax refunds and the

Salaries of Federal Workers and some State Employees, you should

Have heard these deadbeats cry like babies!!! Pay your bills, you borrowed

The money, pay it back!!!

[bheard]

Good idea but what about the 60,000 government and local officials now still owe the loan fund. - when are they going to have their salary stopped ?

Just like in Aus. Perfectly reasonable for 60,000 to still owe the fund - it takes many years to pay off these loans. Gotta live in the meantime.

[rubl]

How will the government assure that loan deductions made in the private sector are actually forwarded to the government?

Without some accountability there is potential for employers simply to pocket the wage deduction. This idea needs more thought.

Well, the OP also mentions

"education loan fund bill which will force employers in government and private sectors to deduct the loan repayment on instalment basis together with personal income tax from the salaries of their employees"

Now of course we can only assume that all that paperwork is in order. Was it before end of this or end of next month we have to fill in the form again so everything can be reconciled and consolidated?