Indebted students advised to apply for refinancing instead of defaulting on repayments
In response to widespread defaults on student loans, the Rights and Liberties Protection Department (RLPD) of the Thai Ministry of Justice and the Student Loan Fund will hold a session in December to allow student debtors to discuss refinancing, to avoid being sued.
“Do not run away, but come forward and discuss ways to solve the student loan debt problem,” said Tipanan Sirichana, an official at the Secretariat of the Prime Minister, today (Thursday).
She said Prime Minister Prayut Chan-o-cha is concerned with the rampant defaults in student loan repayments, mostly due to the economic impacts of the COVID-19 pandemic, and has instructed relevant agencies to explore measures to ease the burden on student borrowers.
Of the students who have taken out loans from the Student Loan Fund, 1.5 million have already settled their debts. About 800,000 are still studying and are not required to repay their debts until they graduate. 3.5 million students are in the process of repaying their debts, 2.3 million of whom have defaulted on repayments.
Tipanan suggested student debtors should not to run away in an attempt to avoid repayment, otherwise they will face lawsuits, which may cause trouble for their parents or loan guarantors, or their assets may be confiscated and put up for auction to repay the debts.
Refinancing is a workable solution, she said, as she recommended that students who have defaulted on repayments or who cannot afford them apply for the refinancing process now at www.studentloan.or.th or by calling the hotline number 02 016 4888.