The Student Loan Fund (SLF) clarified the recent news regarding high interest rates and penalties, stating that these are primarily due to borrowers defaulting on their loans and being overdue for an extended period. The fund confirms that it charges an interest rate of 1% and applies penalties according to court rulings. However, if no legal action has been taken, the penalty will only be 0.5%. The repayments made to the fund will be used as revolving capital for junior students who are in need of financial assistance or require loans.

 

Mr. Kritsada Jinawijarana, Permanent Secretary of the Ministry of Finance and Chairman of the Student Loan Fund, stated, “In response to the news regarding the loan amounts, interest rates, and penalties of the fund, which indicated that the penalties are quite high, the fund would like to clarify that it has provided educational opportunities to over 6 million students nationwide, charging only a 1% interest rate. The high penalties reported are due to overdue payments from borrowers who have defaulted for a long time, resulting in accumulated penalties. If any borrower is taken to court, the court will rule a penalty of 7.5% per annum. However, since May 1, 2021, the fund has implemented measures to reduce penalties to 0.5% per annum for borrowers who have not been taken to court, reduced the loan interest rate to 0.01% per annum for borrowers who are repaying their loans and have never defaulted, reduced the principal by 5% for borrowers who have never defaulted and wish to settle their accounts in one go, waived 100% of penalties for all borrowers who settle their debts, and reduced penalties by 80% for borrowers who have not been taken to court and settle all overdue debts to achieve a normal status (not overdue). Additionally, the fund has measures to postpone legal actions, delay enforcement, except for cases nearing the statute of limitations, and suspend the auction of the borrowers' assets and/or guarantors.

For the 2022 academic year, the fund has prepared a budget of 38 billion baht for loans to support over 600,000 students, which is similar to the previous year. Loans can be obtained without a guarantor to assist those affected by the economic situation, providing them with funds for tuition and living expenses. The fund is also ready to increase lending if demand rises, utilizing its liquidity without burdening the government's budget.”

Mr. Chai Narong Kachapanan, Manager of the Student Loan Fund, revealed that “July 5 of each year is the due date for loan repayments for borrowers whose repayment period has ended. Borrowers can check their debt amounts through the SLF Connect application or at https://wsa.dsl.studentloan.or.th and can make repayments via mobile phone, as well as through payment channels nationwide, including Counter Service (7-Eleven), Thailand Post, Big C, and designated banks. The repayments received will be used as revolving capital for junior students who are in need of financial assistance or require loans each academic year. The fund thanks all senior borrowers who repay on time, as well as government and private sector organizations that contribute to providing educational opportunities for juniors. The fund will be a guarantee for every family that everyone born in this country will have access to education,” the fund manager concluded.