Analysis of the Student Loan Fund Repayment System under the Student Loan Fund Act (No. 2) B.E. 2566: Expectations, Challenges, and Development Guidelines

Abstract

Educational inequality remains a critical issue in Thailand, with the Student Loan Fund (SLF) serving as a key mechanism for expanding access to higher education. However, the former repayment system contributed to persistently high levels of loan delinquency. The enactment of the Student Loan Fund Act (No. 2), B.E. 2566 (2023), aims to enhance flexibility, fairness, and transparency in the repayment system. This study therefore seeks to analyze the SLF repayment system in terms of expectations, challenges, and development guidelines. A mixed-methods approach was employed, collecting quantitative data from 400 student borrowers and qualitative data from 10 SLF administrators across five universities in Songkhla Province. The findings indicate that, in terms of expectations, both borrowers and administrators reported high levels of agreement with the improvements to the repayment system, particularly the reduction of interest rates to no more than 1% per year, the lowering of penalty charges, and the adoption of digital technologies. In terms of challenges, both groups highlighted that the annual repayment structure remains misaligned with borrowers’ actual income, information systems are not yet fully compatible with new regulatory requirements, and cybersecurity risks persist. Regarding development guidelines, qualitative findings suggest the need for greater repayment flexibility, such as monthly or quarterly installments, the integration of Big Data analytics, and revisions to loan allocation criteria to better reflect household net income. In conclusion, the SLF repayment system requires further adjustments to its repayment mechanisms and digital infrastructure to ensure closer alignment with borrowers’ actual income capacity.