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Rationale:

     “The education objective in general is to provide each person fully and sufficiently with cardinal factors and equipment for life both in terms of knowledge, critical ideas and morality, as well as to inculcate an industrious and patient character in the learner so that he is practically and happily able to use his knowledge, skills and ideas in the real working conditions, creating a prosperous and secure society for the country.”

Excerpted from a royal address

     The Educational Loans Fund was set up by a cabinet resolution under the leadership of Prime Minister Chuan Leekpai. Loans were allocated to students as from the year 1996 provided that

     “The borrowers must be destitute students from low-income families who wish to continue their upper-secondary education up to the undergraduate level in Thailand in both general and vocational fields. This includes students in the non-formal education system who wish to further their studies from lower secondary school in the types of education stipulated by the Ministry of Education. The students have to settle the loan plus interest after completing their studies”

     There are 3 agencies which are responsible for educational loans, namely, the Ministry of Finance, the Ministry of Education, and the Ministry of University Affairs. The Krung Thai Bank Public Company Limited is responsible for loan distribution to schools and instructions under the jurisdiction of the Ministry of Education, and for the borrowers in the Ministry of Education, as well as for other agencies and other Ministries which are also responsible for education organization, excluding the Ministry of University Affairs.

ball.gif (123 bytes)  Objectives: ball.gif (123 bytes) Documents for loan-approving consideration
ball.gif (123 bytes) Borrower qualifications ball.gif (123 bytes) Borrowing Procedures
ball.gif (123 bytes)   Income Guarantee ball.gif (123 bytes) Period for loan settlement
ball.gif (123 bytes)  Eligible expenses for loans ball.gif (123 bytes) Loan Settlement
ball.gif (123 bytes)   The Loan Ceiling ball.gif (123 bytes) The borrower’s obligation
ball.gif (123 bytes)  Borrowing Terms ball.gif (123 bytes) Loan revocation
ball.gif (123 bytes)  Borrowing Period ball.gif (123 bytes) Education Loans Fund Implementation

ball.gif (123 bytes) In case of complaints

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Objectives:

     1. To create higher-level educational opportunity for underprivileged students from poor families which is an important element in upgrading the living conditions of the people as well as responsive to the government’s income-distribution policy.   
     2. To support the demand side in the education system by increasing people’s ability to carry the burden in educational expenses.


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Borrower qualifications:

     1. The borrower must have Thai nationality.
     2. The combined income of the borrower’s father, mother and the student himself should not exceed 150,000 baht per year. In case the student is under the care of a guardian, the guardian’s income should be considered instead.
     3. The borrower must not already hold a bachelor’s degree.
     4. The borrower must not be a full-time employee during his study.
     5. The borrower must not be bankrupt.
     6. During the loan period, the borrower must not be convicted of a crime and sentenced to imprisonment.
     7. The borrower must conduct himself properly, not indulging in gambling, alcohol or drug abuse, or frequenting nightclubs.
     8. The borrower must not use the loan in ways not intended by its objectives, i.e. on luxuries which are beyond his student status.
     9. The borrower must have good scholastic achievements or pass the examinations according to educational tests and evaluation procedure.
     10. The borrower must have the qualifications prescribed by the criteria and regulations of the entrance examination of the institutions under the supervision of the agencies namely, the Ministry of Education, other government agencies or ministries, state enterprises, except the Ministry of University Affairs.

 

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Income Guarantee:

     1.egarding the family income, the guarantor must be:1. A governmental official of at least level 5 or its equivalent;
     2. A school or college administrator;
     3. A local government officer who is at least a village headman.

 

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Eligible expenses for loans:

     1. School fees, tuition fees and other expenses related to educational expenses in a semester or a school year collected by the institutions to be paid directly to the savings account of that institution.
     2. Expenses which are related to education such as: books, textbooks, educational equipment in addition to the expense in item 1 would be payable to the borrower’s account.
     3. The living expenses during the study period are payable as follows:
             3.1 Accommodation fee of an institution would be payable to the institution’s account
             3.2 The expense in addition to item 3.1 would be payable to the borrower’s account.

 

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The Loan Ceiling:

     1. Loan ceiling for institutions not under the jurisdiction of the Ministry of Education:

Educational Level

Loan Ceiling (baht)

Higher secondary level in general field

55,440.-

Higher secondary level in vocational field at the Certificate level (grade 9-12)

62,500.-

Higher secondary level in vocational field at the Diploma level (grade 13-14)

70,240.-

Undergraduate level

100,000.-

     2.Loan ceiling for institutions under the jurisdiction of the Ministry of Education:

Educational Level

Loan Ceiling (baht)

Higher secondary level in general field

20,000.-

Higher secondary level in vocational fieldat the Certificate level (grade 9-12)

40,000.-

Higher secondary level in vocational fieldat the Diploma level (grade 13-14)

58,000.-

Undergraduate level

60,000.-

     These criteria would be considered by the loans committee of the institution concerned.


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Borrowing Terms:

    1. A former borrower who wishes to continue his studies at his former institution and desires to borrow in the following year can proceed with the borrowing procedure in the second semester of the present school year so that he can receive the loan at the opening of the next school year.
    2. A former borrower who moves to another institution and wishes to continue borrowing can proceed with his borrowing with the new institution when he begins his study there.


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Borrowing Period:

     The borrower can proceed with his borrowing year by beginning from the upper secondary level until completing the bachelor’s degree.


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Documents for loan-approving consideration:

     1. A two-inch photograph of the borrower.
     2. Certificate of House Registration.
     3. Identification Card and Taxpayer Identification Card of:

    • the borrower.
    • the borrower’s father, mother, (guardian or sponsor).
    • Income guarantor.

     4. A salary guarantee letter of the borrower’s father, mother, (guardian or sponsor).
     5. An income and financial status guarantee letter of the borrower’s father, mother, (guardian or sponsor).
     6. A recommendation letter from a guidance teacher or educational counsellor.
     7. Map showing the residence of the borrower’s father, mother, (guardian or sponsor).
     8. Educational records of the previous school year.

N.B. : Either document item No. 4 or 5 is needed.

 

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Borrowing Procedures:

     1. The borrower can submit the application that complies with the form specified by the Ministry of Finance to the institution. For the application form, please contact your own institution and every Krung Thai Bank Public Co., Ltd.
     2. The borrower should be accompanied by his father, mother, guardian or sponsor who will affix his/her signature to the loan agreement to guarantee the loan at the institution.

To open a savings account for educational loans:

     After the loan has been approved, the borrower should bring along with him the following documents to the Krung Thai Bank to open a savings account for educational loans: a loan-approving document, copies of his House Registration, Identification Card and Student Identity Card.

The savings account for educational loans must not be closed.
     The savings account for educational loans can be closed only when the borrower has settled all debts. Exception is made only when a new savings account for educational loans has been opened.

Documents to be attached to the Loan Agreement for delivery to the Bank:
     Whenever a Loan Agreement is made, it is necessary to attach a savings account book along with a copy of the borrower’s House Registration showing the identification number or a copy of his Identification Card.

What to do when the money transferring process is delayed:
     1. The borrower should contact the institution and ask for the dispatch note of the set of documents his loan agreement is attached to.
     2. The borrower should inform the bank of the borrowing date, the total numbers of the borrowers and the total amount of loans in the dispatch note of that set of documents, as well as the list bearing his friends’ names who have already received the loan in the same documents.

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Period for loan settlement:

     Two years after completing his studies, the borrower must settle the whole loan amount within a period of 15 years plus 1% interest rate as shown in the following table:

Year

Percentage of the Loan Principleto be settled

Year

Percentage of the Loan Principle to be settled

The 1st year

1.5

The 9th year

7.0

The 2nd year

2.5

The 10th year

8.0

The 3rd year

3.0

The 11th year

9.0

The 4th year

3.5

The 12th year

10.0

The 5th year

4.0

The 13th year

11.0

The 6th year

4.5

The 14th year

12.0

The 7th year

4.5

The 15th year

13.0

The 8th year

6.0

   

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Loan Settlement:

      1. The borrower must settle the loan plus interest at any Krung Thai Bank branch two years after the date when his educational completion has been granted or student status has expired.
     2. The loan must be settled within a period of 15 years counting from the first date of settlement.
     3. In order to settle the loan, the borrower should deliver the money plus interest to the Educational Loans Fund annually in accordance with the rate set up by the Educational Loans Committee.
     4. If the loan cannot be settled in due time, the borrower should contact the Education Loans Office, Ministry of Finance, in order to extend the settlement period on a case-by-case basis.
     5. The borrower may settle the loan before the due dates.
     6. The borrower may revoke the agreement at any time by submitting a formal written request to the Education Loans Office, Ministry of Finance, through every branch of Krung Thai Bank Public Co.,Ltd. The borrower has to return the loan amount already received within 30 days or within the period specified by the Educational Loans Committee.
     7. The loan is considered totally settled when the borrower has repaid the total loan amount or if he is deceased.
     8. If the borrower plans to go abroad for more than 6 months, he has to settle all his debts before leaving the country.

 

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The borrower’s obligation:

     1. When applying for the loan, the borrower should duly and fully fill in the agreement form. If the borrower has any problem, he may consult with the teacher/instructor who is responsible for the loan or consult with a staff of Krung Thai Bank branch near his home.
     2. The borrower must maintain all duplicated copies of the loan documents until the loan is settled.
     3. Once the loan is approved, the Bank will transfer the fund to the borrower’s account on the 15th of every month. Therefore, the borrower is advised not to withdraw the fund by his ATM card before the 15th and not to inform anyone of his ATM pin number.
          3.1 On the 14th of every month, the Bank will run the tape that transfers the money into the borrower’s account. The ATM withdrawal service should not be used on that date since it will disrupt the transfer.
          3.2 Only the ATM service from the Krung Thai Bank should be used so that any problem/conflict may be monitored and rapidly corrected.
     4. When the borrower changes the place of residence, institution or completes his studies, he has to notify the Bank within 15 days. The notification form may be requested from the Bank or the relevant educational institution.

 

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Loan revocation:

     The loan will be revoked if it is subsequently established that:
     1. The borrower has no right to borrow or has made a significantly false statement.
     2. The borrower acts contrary to the provision of the contract or agreement with the Education Loans Fund.

In the case of cancellation by the borrower:
     If the borrower cancels the loan but still continues his studies, he must submit a yearly report of his student status to the Bank. In case the borrower fails to report his status, the Bank will proceed with loan collection two years after the cancellation. For further information, please contact the following agencies:
                  -Every educational institution.
                  -Provincial Education Office.
                  -Every branch of Krung Thai Bank Public Co.,Ltd.
                  -A Department within the Ministry of Education which has educational institutions or schools under its jurisdiction.
            -The Sub-committee for First Account Education Loan Payment, Tel./Fax 2806220-1

If additional information is needed, please look for details in the 1998 Education Loans Act

The Office of Sub-committee for First Account Education Loan Payment, Ministry of Education

     The Office of the Sub-committee for First Account Education Loan Payment, Ministry of Education, was set up unofficially by an announcement of the Ministry of Education on December 17, 1997. The office was previously called “The Office of Education Loans”. The Ministry of Education act as the focal point for the Office of the Sub-committee for First Account Education Loan Payment. The Office is responsible for education loans, supports, promotes, cooperates and evaluates education loans of institutions under the jurisdiction of the Ministry of Education as well as responsible for other assigned duties. The Sub-committee consists of:

1.Mr. Panom Pongpaibool Deputy Permanent Secretary Chief Adviser
2.Mr. Paiboon Siengkong Deputy Permanent Secretary Adviser
3.Mr. Prung Paungnudda Former Inspector-General Adviser
4. Mr. Chuchaleum Chaisena Senior Expert in Legal Affairs, Office of the Permanent Secretary Adviser
5. Mr. Boonrat Wongyai Assistant Permanent Secretary Director
6. Mr. Boonchan Buahoong Director of Special Affairs Office Deputy Director
7. Mr. Keartisak Sensai Computer Technical Officer  
8. Miss Nalumol Eaumyingsakun Finance and Accounting Officer, General Affairs Division, Office of the Permanent Secretary  
9. Mrs. Unchalee Tabtim Budgeting Officer  
10. Mr. Pongthep Tomadee Education Officer  
11. Miss Lilada Klinpayom Data Analysis Officer  
12. Miss Juntapim Kaewsakun Data Analysis Officer  
13. Miss Rossakol Pansaoad Data Entry Officer  
14. Mrs. Daroon Wongsri Data Entry Officer  
15. Miss Pinsuda Siritarangsri Assistant Provincial Education Officer,Petchaburi Province Secretary
16. Miss Vareephan Watcharangkun Policy and Planning Officer, Special Affairs Office, Office of the Permanent Secretary Assistant Secretary
17. Miss Phacharanan Kiatbandit Personnel Officer, Personnel Division,Office of the Permanent Secretary Assistant Secretary
18. Mr. Songserm Junsa Education Officer, Phayao Provincial Education Office Assistant Secretary


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Education Loans Fund Implementation:

     The Ministry of Education is responsible for Education Loans Fund according to the cabinet’s resolution on March 28, 1995 and has provided loans for institutions both within and outside the Ministry of Education ,namely, the institutions under the jurisdiction of the Office of the Prime Minister, Ministry of Interior, Ministry of Transport and Communications, Ministry of Public Health, Ministry of Defence, Ministry of Science, Technology and Environment, Bangkok Metropolitan Administration, and the Thai Red Cross since 1996.
     In 1996, of the allocated 3,600 million baht, the Education Loans Fund provided loans in the amount of 2,665,120,440 baht to 131,168 borrowers.
     In 1997, the Education Loans Fund was allocated 6,400 million baht for new borrowers, and provided loans in the amount of 5,405,680 million baht to 278,875 borrowers.
     Existing borrowers : 92,263 persons, amounting to 2,552.06 million baht
     Total number of borrowers: 371,138 persons, amounting to 7,957.68 million baht
     In 1998, the Education Loans Fund was allocated the first portion of loans in the amount of 2,000 million baht for new borrowers (4,000 million baht for 2 semesters in a school year.)
     Total number of borrowers: 217,845 persons.
     The second portion of loans was already appropriated in the amount of 1,666.66 million baht on September 25, 1998. It is expected that the loans can meet the need of 100,000 persons.
Total number of new borrowers (approximately) : 317,845 pers., amounting to 5,666.66 million baht

The number of existing borrowers (approximately): 320,000 pers., amounting to 6,800 million baht
(The number of existing borrowers is at present being confirmed by the institutions concerned.)

     Total number of borrowers (approximately): 637,845 persons, amounting to 12,466.66 million baht.

 

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In case of complaints:

     1. Some private institutions exploit the loans by encouraging poor students to enrol in their institutions and collect activity and accommodation fees at exorbitant rates which are unfair to those already poor students.
    
To address this problem, the Ministry of Education through the Sub-committee for First Account Education Loan Payment’s resolution has drawn up the following measures:

    1. A Working Group to monitor and evaluate loan implementation was set up. At departmental and provincial level, the Working Group is responsible for monitoring and evaluating loan implementation of institutions. If any institution violates the loan objectives and regulations, the department and provincial office concerned will take legal action against the said institution or send a written notice to warn the institution on a case-by-case basis. At present, some private schools are already subjected to litigation from the Ministry of Education.
    2. The Office of Private Education Commission and the Provincial Education Offices are urged to monitor the loan procedure of private schools either by written orders, meetings or continuous monitoring.
    3. The Department and Provincial Offices should publicize the results of the penalty or the warning metered to such opportunistic institutions and schools in the mass media, and official publications. The data should be collected for administrative purpose and future loan consideration for the said institutions. If any institution still proceeds contrary to the regulations, objectives and laws, the office will not allocate fund for the following year and make known the offending institutions to the public with the result that parents and students who desire to apply for loans will choose to study at other institutions.

2. The borrowers’ use of loan does not comply with loan objectives.
     The Ministry of Education has drawn up the following measures to cope with the case:
            1.The institutions must monitor the use of loans by borrowers.
            2.If any institution discovers that the students fail to comply with the loan objectives, the institution should revoke the loan agreement at once.
           3.The institutions should organize programmes/activities which impart positive attitudes and values that are consistent with the objectives of Education Loans Fund.

 

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