Phadorn Plans Student Loan Interest Restructuring
Phadorn Phrisananthakul stated at the House Budget Committee meeting on Oct 1, 2026, about restructuring student loan interest rates.
Stock photo for illustration only, not from the actual event
- Phadorn Phrisananthakul addressed low student loan interest rates
- House Budget Committee held a meeting on student loan issues
- Plans to restructure interest separating disciplined and defaulting borrowers
- Proposes university and village headman income verification
On October 1, 2026, at the Sappaya-Sapasathan Thai Parliament Bangkok, the House Committee on Budgetary Oversight and Monitoring held a meeting to address ongoing issues concerning the Student Loan Fund. Ms. Rakchanok Srinok, a list MP from the People's Party and chair of the committee, presided over the session.
Mr. Phadorn Phrisananthakul, Minister attached to the Prime Minister's Office, attended the meeting to provide clarifications and discuss potential solutions for the fund's operational challenges, aiming to plug loopholes and improve debt management to sustain financial aid for future generations.
Mr. Phadorn explained to the committee that the original objective of the Student Loan Fund was to provide educational opportunities for underprivileged students. However, current challenges stem from the legal amendments made in 2023 regarding interest rates and penalties.
Previously, interest rates and penalties were as high as 7-8 percent. Due to widespread feedback from borrowers struggling with repayment, political parties unanimously agreed to reduce interest rates to between 0 and 1 percent to provide immediate relief at the time.
Stock photo for illustration only, not from the actual event
"What solved the problem back then has now become a new problem. With such low interest, some borrowers refuse to repay the Student Loan Fund."
Mr. Phadorn Phrisananthakul
Nevertheless, the Minister pointed out that past assistance measures have generated new complications. Because interest rates are extremely low, a portion of borrowers choose to delay or avoid repaying their loans, directly impacting the fund's overall liquidity and revolving capital.
The restructuring of student loan interest rates highlights the government's effort to balance social welfare policies with the enforcement of financial discipline among citizens, preventing moral hazard where borrowers neglect repayment due to minimal financial costs.
Consequently, authorities plan to overhaul the interest structure by clearly separating disciplined borrowers from defaulters. Additionally, proposals include involving universities and village headmen in verifying borrowers' financial hardship to properly screen eligible candidates.
Source: Khaosod Politics
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