Bangkok: The government reiterates its policy aimed at developing both the populace and the nation by providing opportunities to students borrowing from the Student Loan Fund (SLF). Ms. Sasikarn Wattanachan, Deputy Government Spokesperson, indicated that the government is prioritizing the resolution of debt issues related to the SLF, allowing students to complete their education and contribute significantly to national development.
According to Thai News Agency, the SLF is advancing with a new debt restructuring plan under the Student Loan Fund Act (No. 2) B.E. 2566. Key changes include altering the debt repayment order to prioritize “principal-interest-penalty” and reducing the penalty rate from 18% to 0.5%. This measure is expected to immediately lessen the financial burden for borrowers, impacting about 3.5 million students.
Currently, the SLF has initiated the debt restructuring process for over 2.3 million borrowers, representing approximately 70% of the total. Borrowers can verify their revised debt amounts through the SLF’s website. For those who previously signed restructuring agreements, any initial increase in debt will be automatically adjusted once the new system is implemented.
The SLF is also developing a new application to replace the existing ‘GSB Connect’, which is not fully compatible with the new system. Once operational, borrowers will have the capability to verify their debts online.
Regarding salary deductions, the SLF previously only deducted the current debt, excluding past dues. As of April 2025, 490,225 borrowers had salary deductions for outstanding debts, with an additional 251,083 borrowers in May.
Support measures are in place for borrowers affected by an additional 3,000 baht deduction per account. Borrowers who have restructured their debt must inform their employers to prevent extra deductions. Those who have not yet restructured must request a reduction in salary deduction via the SLF website by specified deadlines.
The SLF has begun refunding borrowers who overpaid, with 286,362 accounts owing a total of 3,399.13 million baht. As of May 7, 2025, 2,528 accounts have been refunded, with further installments planned through September 2026. Data indicates Bangkok has the highest overdue payments.
The age group with the most overdue payments is those aged 30-39, followed by 40-49, and 20-29. Borrowers who enter a restructuring contract are eligible for benefits such as releasing guarantors and a 100% penalty discount upon final payment, though these benefits are voided if they default on more than six installments.
Issues with accessing the online system persist, and borrowers are encouraged to verify their identity through the ThaiD application to mitigate delays. Additionally, the SLF offers debt reduction incentives to encourage repayment, with discounts available until May 31, 2025.
The Student Loan Fund remains a crucial resource for Thai youth, providing low-interest loans without requiring guarantors, and allowing repayment over up to 15 years. The government urges all borrowers to fulfill their repayment obligations, ensuring future generations have equal educational opportunities. Ms. Sasikarn emphasized that the SLF does not intend to pressure or litigate against borrowers unless absolutely necessary.