As Thailand faces an aging population, the Student Loan Fund (SLF) is expanding its reach to assist in skill development for all working-age people. This move, the first since the fund’s establishment in 1996, is in line with the amended Student Loan Fund Act of 2023.
According to SLF Manager Chainarong Katchapanan, loans will be available for all Thai citizens aged 18 to 65, with a focus on upskilling and reskilling through non-formal educational institutions. The loan extends to courses beyond traditional education such as vocational institutes that offer short courses that are critical for improving workforce skills. These courses, however, must not exceed one year in duration and must be offered by institutions accredited by the Office of the Private Education Commission.
Initially, the SLF planned to provide loans to around 2,000 people, with a loan cap of up to 50,000 baht. The loan has a two-year grace period followed by a two-year repayment period. A 50,000 baht loan, for example, will result in an average monthly installment of 2,000 baht.
The amended SLF law has also reduced the penalty for late payments from 7.5% annually to 0.5%, while the loan interest rate remains capped at 1%, which is the lowest within Thailand’s financial system.
The SLF is also planning to build a dispute resolution and debt restructuring process for both pre-litigation and post-litigation debtors by the end of this year.
To address the rising demand for student loans, the SLF increased its lending cap for the 2023 academic year to 46.1 billion baht from 40.7 billion, a 13% increase. The move has benefited around 760,000 students, resulting in the addition of 117,000 borrowers receiving more opportunities in education. (NNT)
