Cabinet approves 1.2 billion baht to keep student loans flowing

BANGKOK — 30 September 2026, Thailand’s Cabinet has approved 1.206 billion baht in central budget funding to shore up the Student Loan Fund’s liquidity and ensure payments continue for nearly 142,000 borrowers.

Lalida Periswattana, deputy government spokeswoman, said the Finance Ministry asked the Cabinet to allocate 1,206,477,900 baht from the central budget’s emergency and necessary expenditure reserve to the Student Loan Fund.

The money will allow the fund to continue transferring loans for tuition fees, education-related expenses and living costs.

The fund had requested 21.9 billion baht in the 2026 fiscal year budget but received only 5.1 billion baht, leaving it 16.8 billion baht short of its request.

The Student Loan Fund has relied on a combination of its state allocation and repayments from former borrowers to finance new loans. However, cash-flow projections showed it faced a liquidity risk and might not have enough money to make payments to 141,838 borrowers.

For the 2026 academic year, the fund has set a lending target of 775,629 new and continuing borrowers, with loans totalling about 47.71 billion baht. As of August, 577,523 borrowers — 74.45% of the target — had received loans worth 35.08 billion baht, or 73.54% of the planned amount.

The Budget Bureau had submitted the request to Prime Minister Anutin Charnvirakul, who approved the use of the central budget through the end of the fiscal year. Cabinet approval was required because the allocation exceeded 100 million baht.

The fund has also been instructed to step up efforts to encourage repayments from former borrowers, aiming to increase its revolving funds and strengthen its long-term liquidity.

Lalida said the additional funding would prevent interruptions to payments for tuition, related education costs and living expenses, helping students continue their studies.