Govt tightens screws on student-loan defaulters
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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.
