The Student Loan Fund (SLF) in Thailand, managed by Chainarong Katchapanan, introduced plans to increase its mortgage providers to all working-age adults, aged between 18 and 65. The transfer, aimed at upskilling and reskilling, is in response to Thailand’s shift in direction of an ageing society.
This initiative shall be carried out by the top of this yr, marking the first time since its institution in 1996 that the fund has expanded its attain beyond formal educational establishments.
The determination aligns with the policy to broaden instructional alternatives as outlined in the revised Student Loan Fund Act of 2023. Furthermore, round 200 establishments that provide nursing care education, another critical need in an ageing society, are anticipated to learn from this loan scheme by the year-end.
The mortgage amount might be restricted to 50,000 baht per borrower, targeting approximately 2,000 people. The reorientation of the fund is attributed to its recognition of non-formal educational institutions, similar to vocational institutes, which offer essential short courses of up to 150 hours for workforce upskilling or reskilling. Short-course study programmes embrace hotel administration, underwater welding, and spa remedy, along with caregiving.
Students in search of a mortgage must enrol in a research programme, not exceeding one yr, at a non-formal educational establishment accredited by the Office of the Private Education Commission. The mortgage has a two-year grace period, followed by a two-year debt repayment requirement.
For a two-year compensation interval on a mortgage quantity of 50,000 baht, the monthly instalment averages out to 2,000 baht. As per the amended SLF regulation, the fantastic for late funds has been reduced from 7.5% annually to zero.5%, whereas the interest on the loan stays capped at 1%. This fee is considered the lowest in the home financial system.
Savings
To date, the fund has lent a total of seven-hundred billion baht to six.2 million students. Outstanding loans quantity to 350 billion baht from 350,000 debtors. However, approximately 90 billion baht, which accounts for nearly 30% of the excellent mortgage balance, has not been repaid by the due date.
For the 2023 academic yr, the fund has elevated the loan limit to 46.1 billion baht from forty.7 billion, a rise of 13% to assist the growing demand for student loans. The variety of college students receiving loans has risen by 117,000 to 760,000.
As of September 12, debt compensation totalled 25.7 billion baht. The fund is in the strategy of drafting a contract for dispute settlement and debt restructuring for each “pre-sue” and “post-sue” debtors, which is anticipated to be finalised by the end of this year.
Previously, the Fiscal Policy Office reported that Thailand became an ageing society in 2005, with at least 10% of the population aged 60 or older.
In 2019, the older population surpassed the younger population for the first time. With a gradual inhabitants growth rate of zero.5% per 12 months and an elevated average lifespan of seventy six years, Thailand is projected to turn into an “aged” society either this yr or subsequent, the place those aged 60 and older will constitute 20% of the inhabitants.
By 2034, the nation is anticipated to transition into a “super-aged” society, with the older population accounting for 28%, reported Bangkok Post.
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