The cabinet on Tuesday approved the education loan fund bill which will force employers in government and private sectors to deduct the loan repayment on instalment basis together with personal income tax from the salaries of their employees who took the government’s educational loans to further their studies.
Finance Minister Apisak Tantiworawong said Wednesday that this proposed legislation which is pending the approval of the National Legislative Assembly would enable the education loan fund to reclaim money from loan recipients so that there will be enough loan to be extended to needy students.
The money which was deducted from the salaries of the loan recipients will first go to the Revenue Department and eventually to the student loan fund.
Last year alone, the fund received 17 billion baht in repayments from the loan recipients and it was projected that the amount will increase to 19 billion baht this year.
About 60,000 government and local officials now still owe the loan fund.