Student management

Government will lose £6billion in revenue a year if student loans are interest free

(File) Deputy Government Spokesperson, Rachada Dhnadirek

The government will lose about 6 billion baht in revenue a year if students receiving loans under the student loan scheme are exempted from paying interest and fines, in the event of default, according to deputy government spokeswoman Rachada Dhnadirk.

The House of Representatives recently approved, by a majority, a student loan fund bill, which aims to waive interest on student loans, as well as fines for default. The draft bill will then be deliberated in the Senate.

According to Rachada, the government has provided 702.31 billion baht in loans to 6,284,005 students since the student loan program was launched in the 1998 academic year, after cabinet approval on Jan. 16.e1996 to establish the student loan fund, which is a legal entity.

Of these, about 1.6 million students have fully repaid their loan, about 3.5 million are in the process of repaying their loan after graduation, 986,668 are still studying, and 68,787 have died or become invalid.

For the 2022 academic year, around 38.8 billion baht in new loans were issued to 638,132 students. Over 27 billion baht had been repaid by students in the academic year as of September 20e.

Rachada said that apart from interest of 6 billion baht and loss of revenue from fines per year, the student loan fund has management fees, estimated at around 2 billion baht per year.

She also leaked a list of 25 universities with the best student loan repayment records. Among them are Phayao University, Silpakorn University, Rajamangala Lanna University of Technology, Naresuan University, Chiang Mai University, Mae Fah Luang University, Mahidol University, Prince of Songkhla University , Thammasat University, Kasetsart University, Suranaree Technological University, Burapha University and Chulalongkorn University. .