Education Loan Fund

Rationale

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

                                                                  An excerpt from the royal address

 The Education Loan Fund was set up by a cabinet resolution under the leadership of Prime Minister Chuan Leekpai in 1996. A loan has been allocated to students 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 both general and vocation education. This includes student in non-formal education system who wish to further their studies from lower secondary level in the types of education stipulated by the Ministry of Education. The students have to settle the loan plus interest after completing their studies”

The agencies responsible for educational loans are the Ministry of Finance, the Ministry of Education, and the Ministry of University Affairs. Krung Thai Bank Public Company Limited is responsible for loan payment. The Ministry of Education is responsible for borrowers within its jurisdiction and other agencies/ministry of University Affairs.

Objectives:

               1. To create a higher-level educational opportunity for underprivileged students from poor families as an important element of upgrading their living conditions and in accordance with the government’s income-distribution policy.

2. To provide support for education to the public by alleviating their burden in educational expenses.

Loan Ceiling:

 1. Loan Ceiling for institutions outside the jurisdiction of the Ministry of Education:

Education Level

Loan Ceiling(baht)

Upper secondary level in general education

55,440.-

Upper secondary level in vocational education, Certificate offering (grade 9-12)

62,500.-

Upper secondary level in vocational education, Diploma offering (grade 13-14)

70,240.-

Undergraduate level

100,000.-

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

Education Level

Loan Ceiling(baht)

Upper secondary level in general education

20,000.-

Upper secondary level in vocational education, Certificate offering (grade 9-12)

40,000.-

Upper secondary level in vocational education, Diploma offering (grade 13-14)

58,000.-

Undergraduate level

60,000.-

 These criteria would be considered by the loan committee of institutions concerned.

Borrowing Period:

The borrower can proceed with his borrowing from upper secondary level to the completion of bachelor’s degree. 

Periods of loan settlement: 

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

Years

Percentage of Loan Principal to be settled

Years

Percentage of Loan Principal to be settled

1st year

1.5

9th year

7.0

2nd year

2.5

10th year

8.0

3rd year

3.0

11th year

9.0

4th year

3.5

12th year

10.0

5th year

4.0

13th year

11.0

6th year

4.5

14th year

12.0

7th year

4.5

15th year

13.0

8th year

6.0

 

 

Office of Sub-committee on the First Account Payment

               The office of the Sub-committee on the First Account Payment, Ministry of Education, was internally set up on December 17, 1997. It was previously called “The Office of Education Loans”. The Office is responsible for cooperation and evaluation of education loans under the jurisdiction of the Ministry of Education.

 Education Loan Fund Implementation:

               The Ministry of Education is responsible for Education Loan Fund according to the cabinet’s resolution on March 28, 1995. Since 1996 it has provided loans for institutions both within and outside the Ministry of Education such as the institutions under the supervision of the Office of the Prime Minister of Interior, Ministry of Transport and Communications, Ministry of public Health, Ministry of Defence, Ministry of Science, Technology ad Environment, Bangkok Metropolitan Administration, and the Thai Red Cross.

In 1998, the total number of borrowers is approximately 637,845 persons, amounting to 12,466.66 million bath.

Source : External Relations Division, Office of the Permanent Secretary, Ministry of Education “Thai Education in Brief : Its part ; present, and Future.” 2000

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last update 13/jan/2003


Program by Education Management Information System Centre (EMISC)
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website@emisc.moe.go.th