With a staggering 100 billion baht (US$2.8 billion) in bad debts, the Student Loan Fund (SLF) is set to see a decline in its debt pile following the implementation of a new debt repayment calculation method, according to SLF manager, Chainarong Kajchapanan. This change is a result of the recent amendment of the Student Loan Fund Act (No.2) 2023, which came into effect last year on March 20.
Previously, repayments made by debtors after a default were primarily directed towards offsetting default charges, followed by overdue interest and principal payments. This system often resulted in minimal payments towards the principal debt. The new calculation method, however, prioritises loan principal repayments, followed by overdue interest and default charges.
This significant shift in payment structure is further augmented by changes in the interest rate and…
