The Ministry of Education, the Teachers' Council, and the Government Savings Bank are assisting teachers with over 280,000 accounts by reducing interest rates to 3.50%, keeping payments the same but enabling greater principal repayment to close debts faster, while also advancing financial literacy to build teachers' long-term resilience against returning to debt cycles.
On 21 Aug 2026, Lieutenant Colonel Phatdarasmit Thongsaluaykorn, Deputy Spokesperson of the Prime Minister's Office, announced that the government is proactively addressing teacher debt. The Ministry of Education, the Teachers' Council, and the Government Savings Bank have jointly launched the "Government Savings Bank Moves Forward with Teachers... Helping Educators Achieve Financial Freedom" project to reduce interest burdens and help teachers and educational personnel repay principal and close debts faster. Currently, over 280,000 teachers and educational staff have outstanding loans under this program.
A key measure involves the Government Savings Bank reducing loan interest rates for borrowers in the Chor Por Chor–Chor Por Sor welfare loan programs and the support program for education professionals who have normal status, no legal issues, and contracts still active in 2026. The rate drops to 3.50% per year until December 2027, down from the previous 6–7% per year.
Importantly, borrowers will continue to pay the same installment amounts, but with the lowered interest rate, more of the payment goes toward principal reduction. This accelerates principal repayment and shortens the debt period. From January 2028 onward, interest rates will revert to the original contract terms: either MLR minus 2.00% per year or MRR minus 2.00% per year, according to the original loan reference rates.
Lieutenant Colonel Phatdarasmit explained that teacher debt has been a long-standing burden. The welfare loan programs Chor Por Chor–Chor Por Sor have approved loans for over 900,000 teachers and educational personnel, totaling more than 760 billion baht in loans. Currently, over 291,185 loan accounts remain with a principal balance exceeding 223.952 billion baht. This reflects the financial strain affecting teachers' monthly expenses, quality of life, and long-term financial security.
"This measure aims to provide direct assistance to teachers. By reducing interest rates, the same installment payments reduce principal more, shortening debt duration and enabling teachers to close their debts faster. With less debt burden, teachers will have more opportunities to support their families and plan for the future," she said. The Deputy Spokesperson of the Prime Minister's Office added.
Eligible individuals can register for the program via the MyMo application or any Government Savings Bank branch nationwide from 5 August to 31 October 2026. Those who register earlier will receive the interest rate reduction sooner.
Those who have lost membership in the Chor Por Chor–Chor Por Sor programs and wish to join must first reapply for membership with the Teachers' Council, then register with the Government Savings Bank by 30 November 2026.
Meanwhile, those not yet eligible—such as those with arrears over one month, legal issues, or undergoing debt restructuring—can contact any Government Savings Bank branch to update their status and meet conditions to join the interest reduction program.
Lieutenant Colonel Phatdarasmit added that the government seeks not only to free teachers from debt today but also to build their financial resilience and future planning capability. Therefore, the interest rate reduction addresses urgent problems, while promoting financial knowledge is a key approach to preventing recurring debt in the long term.