SLF to start deducting salaries of student loan borrowers in March

The Office of the Student Loan Fund (SLF) will start deducting the salaries of officials who were given student loans while they were studying to settle their debts on monthly basis in the first quarter of the coming year.

Mr Chainarong Katchapanont, manager of the loan fund, said Wednesday (Dec 27) that the enforced salary deduction was made possible by virtue of the new Student Loan Fund Act which came into force since July this year.

Before the start of the enforced salary deduction, he said officials from the SLF would make clarifications about the measure to officials in various agencies, beginning with the Comptroller General’s Department in January and February.

The measure will first be applied to a few thousand officials who are in the process of debt mediation or who have signed debt payment in court with the SLF out of a total of about 150,000 officials whose debts are due.

As for SLF debtors who are employees in private companies, Mr Chainarong said that enforced salary deduction would start in the fourth quarter of next year while the  SLF was considering how these debtors’ salaries are to be deducted–proportionately or by percentage.

Since the launch of the student loan fund, there are altogether 8 million people who were given the student loans.  Of these, the loans of 3.2 million of them are due for repayments.  Over 900,000 debtors have been sued by the SLF for their failure to repay the debts.  This year alone, 150,000 debtors with accumulated debts amounting to 13 billion baht were sued in court.