Poll shows most people want employers to deduct salaries of student loan defaulters



BANGKOK: -- More than 60 percent of respondents to the Nida Poll support the proposal for a new law to empower employers to deduct the salaries of their employees to repay their student loans they took while studying.

The same poll also shows about 45 percent of the respondents agree with the idea of the finance permanent secretary to not extend the identity cards of students who have refused to pay their student loans.

Nida Poll of the National Institute Development Administration in cooperation of the social development and environment faculty surveyed the opinions of 1,250 people of various walks of life during March 29-30 about student loan defaults. About two million students who took student loans still owe the state to the tune of 52 billion baht in unpaid loans.

Regarding the idea of not extending the ID cards of the loan defaulters, the poll shows 30.32 percent fully agree with the idea; 14.16 percent agree with it; 36.24 percent disagree with the idea.

Regarding the proposed law to empower employers to deduct the salaries of their employees to repay their student loans, the poll shows 62.24 percent fully agree with the proposal; 22.56 percent agree with it; 6.56 percent disagree with it.

The poll also shows 45.76 percent believe that the loan recipients cannot afford to repay the loans even if they are employed; 31.04 percent believe the loan recipients do not have the sense of responsibility; 6.32 percent believe the punishment against the loan defaulters is too lenient.

15.52 percent of the respondents believe that there should be penalties against educational institutes which have high number of loan defaulters; 45.4 percent disagree with punishment against the institutes.

Source: http://englishnews.thaipbs.or.th/content/158032


-- Thai PBS 2016-04-04

Sounds fair enough, providing it doesn't greatly impact the loan recipients, and the money actually makes its way back to the govt's bank account...

In Australia, you have to start repaying your HELP/HECS debt through the taxation system once your repayment income is above the compulsory repayment threshold, even if you are still studying. The amount you repay each year is a percentage of your repayment income. The percentage increases as your income increases, so the more you earn, the higher your repayment will be.

The compulsory repayment threshold is adjusted each year. The compulsory repayment threshold for the 2015-16 income year is $54,126 and the compulsory repayment threshold for the 2016-2017 income year is $54,869. In November 2015, the Full-Time Adult Average Ordinary Time Earnings was $77,963.60. Someone earning $54,125 will have a take-home pay of $843.87; that same person earns $1 more and their take-home pay drops to $801.88, repaying $41.65 per week (4.0% of their repayment income). Someone earning the average salary of $77,963 will repay $89.96 per week (6.0% of their repayment income).

It can be done. It can be done equitably. It can be done in a way that isn't greatly unaffordable. Will Thailand do it in any of these ways? Considering how bad they generally are with maths, I don't think that's likely.

I seem to recall from the original news article that the proposed monthly payment was in the order of 100 baht! A full repayment would take about 200 years

Sounds fair enough, providing it doesn't greatly impact the loan recipients, and the money actually makes its way back to the govt's bank account...

In Australia, you have to start repaying your HELP/HECS debt through the taxation system once your repayment income is above the compulsory repayment threshold, even if you are still studying. The amount you repay each year is a percentage of your repayment income. The percentage increases as your income increases, so the more you earn, the higher your repayment will be.

The compulsory repayment threshold is adjusted each year. The compulsory repayment threshold for the 2015-16 income year is $54,126 and the compulsory repayment threshold for the 2016-2017 income year is $54,869. In November 2015, the Full-Time Adult Average Ordinary Time Earnings was $77,963.60. Someone earning $54,125 will have a take-home pay of $843.87; that same person earns $1 more and their take-home pay drops to $801.88, repaying $41.65 per week (4.0% of their repayment income). Someone earning the average salary of $77,963 will repay $89.96 per week (6.0% of their repayment income).

It can be done. It can be done equitably. It can be done in a way that isn't greatly unaffordable. Will Thailand do it in any of these ways? Considering how bad they generally are with maths, I don't think that's likely.

Thing is that in your country and mine almost everyone files income tax and is in the system. Here many don't file income tax and often don't have wages or an income that is registered. Those people represent a fairly large percentage and are not always poor. But just poor on paper. So the basics that are needed for such a system is not in place.

It would work on those who are in the system.. those who are not.. on purpose or not.. still don't have to pay.

Thing is that in your country and mine almost everyone files income tax and is in the system. Here many don't file income tax and often don't have wages or an income that is registered. Those people represent a fairly large percentage and are not always poor. But just poor on paper. So the basics that are needed for such a system is not in place.

It would work on those who are in the system.. those who are not.. on purpose or not.. still don't have to pay.

That is true, but wouldn't those who have employers who would be deducting the payment be 'in the system'?

I don't think this idea of repaying a loan in full will catch on in Thailand.

Those who are in govt service but decline to repay their student loans should have their employment terminated .

'Nida poll' should really reads as 'Prayuth wants'

Shift responsibility away to another person! Never hold the person actually owing the money accountable!

Core Thai values?

And where is a good percentage of this 'deduction' going to end up???

So if the government can get the employers to collect the student loans ,then the (no balls) government wont look like the bad guys here." See here students,it was the nasty old employer that took part of your wages and not the government.Oh by the way,we want your votes."

I read "NIDA Poll" and lost all interest, in what was coming next!

Thing is that in your country and mine almost everyone files income tax and is in the system. Here many don't file income tax and often don't have wages or an income that is registered. Those people represent a fairly large percentage and are not always poor. But just poor on paper. So the basics that are needed for such a system is not in place.

It would work on those who are in the system.. those who are not.. on purpose or not.. still don't have to pay.

That is true, but wouldn't those who have employers who would be deducting the payment be 'in the system'?

That is the problem, many are not paying any income tax and are not registered as an employee they just get money from a boss who did not register them. Same goes for those who have their own business, only those who work registered would have to pay.

That is also the reason why Thailand has so much problem there are not many people who pay income tax. Only those working for larger companies. So the good will suffer and those who don't want to pay just look for jobs in the informal sector or start their own company.

How can an employer (in this case a 3rd party) be asked to re-pay a loan from an employee who has defaulted?

The employer cannot benefit or suffer from the actions of the parties to the contract/loan agreement.

This act to deduct student loans will never work. They will just quit there low paying job and move on to another than another! Take there drivers licences and cars and scooters from them and see what happen,s!

How can an employer (in this case a 3rd party) be asked to re-pay a loan from an employee who has defaulted?

It's called garnishment. The bank sues the debtor and almost always wins, even in absentia, and is entitled to place leins on the debtor's property and assets, and to garnish any wages they might be collecting.

The employer cannot benefit or suffer from the actions of the parties to the contract/loan agreement.

So what? Why does the employer need to benefit?

Well with a proper court order, which of course implies a proper court which I don't think Thailand has, defaulters typically can have wages garnished. It sure happens in the USA. The IRS, the American taxation agency will automatically take out money from one's tax return if you were getting a refund.

The cost of a degree exceeds the benefit.