Prime Minister Srettha Thavisin recently stated that later this month, the government is set to unveil a fresh financial aid package. This progressive initiative will notably extend relief to various borrower categories including ex-students servicing their education loans, educators, and small to medium scale entrepreneurs. Furthermore, the aid package will also encompass those who are indebted to non-banking financial entities. This bold move comes hot on the heels of new guidelines drafted by the government’s special committee, dedicated to combating escalating debt issues.
The new regulations set forth by the committee are optimally designed to alleviate the financial strain on ex-students grappling with their loan repayments. However, it doesn’t stop tailoring solutions merely for student loans. Their expansive umbrella also covers other significant debt issues plaguing different segments of society. These issues too will be directly addressed under the imminent debt relief package, as assured by the Premier.
Lawaron Saengsanit, who is at the helm of the finance department and also chairs the Student Loan Fund (SLF) board, has introduced a lucrative new regulation. It enables the SLF to update the formula for computing loan repayments, which is expected to reduce the cumulative debt load significantly. As per the altered rule, initially, student repayments will be geared towards reducing the principal amount. Following this, any subsequent repayments will be steered towards the deduction of interest and late payment penalties.
This strategy is a major departure from previous repayment guidelines and is expected to engender considerably reduced repayment figures, per MrLawaron’s statements. Effective immediately, it is projected to bring a technology-induced sigh of relief to approximately 3.5 million student loan borrowers who are currently in the process of having their loan repayments revised.
The innovative SLF repayment computation mechanism may also reveal some long-standing borrowers have been unknowingly making overpayments on their student loans. These individuals can claim and retrieve the surplus amounts, as informed by Prime Minister’s chief advisor Kittirat Na Ranong. On the flip side, the amended calculation system may also play the savior to SLF debtors staring at foreclosure implications. Their reduced loan amounts could offer a lifeline, preventing repossession and confiscation of approximately 46,000 debtor assets.