A major discussion addresses the Student Loan Fund's (กยศ.) 220 billion baht bad debt and widespread loan rejections among students. The parliamentary committee suggests extending tuition payment deadlines while adjusting loan eligibility criteria to better fit needs. Defaulters from previous cohorts face credit bureau listings. Meanwhile, students continue to petition the government to provide sufficient funding to resolve the crisis and prevent dropouts due to financial barriers, highlighting the urgency of the situation.
. . . Student Loan Fund (กยศ.) The Student Loan Fund revised its loan screening and quota allocation criteria, adopting a WATERFALL MODEL with four priority levels, first allocating quotas to key-demand academic fields, and revising borrower application processes and eligibility. Consequently, many students were unable to secure loans. On 26 Aug 2026, the National Council for Children and Youth, together with affected students, filed a petition to the council, revealing a survey of 15 educational institutions nationwide showing 47% of applicants were rejected, risking educational dropout. Meanwhile, the fund faces 220 billion baht in bad debt with no clear relief measures (read more at: New Student Loan Fund criteria limit quotas by major over poverty, squeezing students out of the system)
On 3 Sep 2026, Mr. Plathip Pimsuwan, a first-year student at Uttaradit Rajabhat University, alongside networks including the National Council for Children and Youth and the Thammasat University Student Organization (TUSO), attended a meeting of the Parliamentary Education Committee to consider management of the Student Loan Fund from the perspective of affected borrowers, providing data and opinions. Relevant agencies, including representatives from the Student Loan Fund (กยศ.), participated and proposed solutions.
Ms. Jintawan Traisornkul, MP for Sisaket from Bhumjaithai Party, and Ms. Wongakeu Boonsol, MP for Sakon Nakhon from Kla Party, serving as spokespersons for the Education Committee, reported that the meeting featured two sides: complainants—students unable to obtain Student Loan Fund loans—who presented data on those excluded under the WATERFALL MODEL quota allocation system and new definitions for new and existing borrowers,
and the Student Loan Fund representatives who explained the new criteria aim to resolve budget limitations and a non-performing loan (NPL) rate exceeding 50% of all borrowers. Of approximately 4 million past borrowers, only 2 million currently repay, limiting funds available for current students.
Ms. Wongakeu stated the committee proposed solutions to the Student Loan Fund. The first point is to reconsider and adjust screening criteria, especially for third-tier borrowers (those not studying in key-demand fields but holding poverty cards) and fourth-tier borrowers (not in key-demand fields with family income under 360,000 baht annually), groups at high risk of losing loan quotas. The committee questioned whether the 360,000 baht income threshold is appropriate, noting some households may exceed this income but have many dependents, making funds insufficient. The Student Loan Fund promised to review this.
Regarding prioritization by academic field, Ms. Jintawan explained it follows the Student Loan Fund’s new approach focusing on "academic excellence, employment prospects, and repayment readiness." Priority is given to disciplines in high demand such as AI, EV, semiconductors, and public health—areas critical to national development aligned with government New S-Curve industrial policy.
The second point is debt collection from previous borrowers. Ms. Wongakeu revealed that serious short-, medium-, and long-term measures are underway. In the short term, for 2026, the fund has outsourced private companies to pursue debt collection and has begun reporting defaulters to the national credit bureau and employers. Medium-term plans include fully integrating credit bureau systems to coordinate with agencies and borrower employment.
The third urgent issue concerns students who failed to secure loans and risk dropping out this academic year. Ms. Jintawan said the committee recommends the Student Loan Fund notify universities to clearly inform applicants about their loan quota status (Pre-Approve) so students can plan their studies accordingly.
Additionally, the committee suggests the Student Loan Fund engage universities—among 4,000 participating institutions nationwide—to allow deferments and extend tuition payment deadlines this academic year, addressing issues caused by new criteria enforcement. The fund proposed reallocating loan amounts by reducing "living expenses" and shifting funds to cover "tuition fees" to broaden access. Currently, the loan disbursement ratio between living expenses and tuition is approximately 80:20 or 70:30, favoring living costs.
Regarding budget increases or reallocations to solve the problem, the 2027 budget has been approved and may be too late. However, the Student Loan Fund has requested an additional 4.8 billion baht from the central budget for the 2026 academic year, which the committee has acknowledged and will coordinate further.
The Education Committee spokesperson emphasized they will push for increased funding in the next fiscal year. While possibly not the full amount needed, the goal is to prevent more students from dropping out. No definite timeline for resolving Student Loan Fund issues was set at the meeting, but continuous progress monitoring was assured.
"Education is an essential government investment to develop human resources for national progress. We want students to be confident that the committee prioritizes and actively works to ensure financial issues do not halt their hopes and dreams for a better quality of life and contribution to the country," the spokesperson said.
Mr. Plathip, representing affected students, said that after nearly two months of advocacy, the Education Committee has acknowledged the issue, invited them to provide information, and held discussions with the Student Loan Fund. The group reported problems and proposed solutions.
First, students risk dropping out this academic year due to insufficient loan quotas caused by limited funds, leading to the adoption of the WATERFALL MODEL and Pre-Approve application system, which raises uncertainty about the actual number of applicants.
The Student Loan Fund targets 780,000 borrowers but requires an additional 22 billion baht to meet demand. The group believes the true number of applicants is higher and even with extra funds may remain insufficient. They propose the fund conduct a precise survey of borrowers and budget needs, and the government must supply adequate funding.
"The government has ample funds for other purposes, yet the Student Loan Fund was allocated only 9 billion baht for 2027, compared to 4.5 billion baht in 2026 and 19 billion baht in 2025—a year without these issues. Although 2027's budget is double 2026's, it remains less than 2025’s, when no problems occurred," he noted.
The Pre-Approve system should clearly indicate whether applicants have been allocated quotas or will receive funds, enabling educational planning. Currently, many see "under document review," fostering false hope of receiving loans.
The group proposed that the 360,000 baht household income threshold be averaged per family member or consider dependents' burdens.
"For example, a fellow student's family has a single working father earning over 360,000 baht due to overtime but supports five people. The student borrower failed the income criterion and faces losing eligibility," he explained.
The WATERFALL MODEL quota system has flaws, such as students with resources being prioritized if studying in key-demand fields over poor students in non-priority majors, and reliance on poverty card status despite issues with the 2022 card distribution.
"In reality, the fund need not create its own screening criteria but could use poverty data from the Ministry of Education or the Equitable Education Fund (EEF). The fund's self-created criteria exclude many truly poor students from the system," he criticized.
Mr. Plathip said the meeting atmosphere reflected genuine willingness from committee members to help, but many questions remained unanswered or ambiguously addressed. The committee pledged to advocate for solutions, which will require coordination with multiple agencies.
The Student Loan Fund has not committed to a clear timeline for resolving problems. The group understands the accumulated issues and sympathizes with the new fund manager but urges the fund to acknowledge the hardship, accept the data, and consider the proposals seriously, affirming that their information is accurate and not fabricated.
Moving forward, the group will continue advocacy, sending letters to relevant agencies such as the Ministry of Higher Education, Science, Research and Innovation's Secretariat Office, the Prime Minister's Office, the Council of University Presidents, and the Budget Bureau, calling for joint meetings to devise solutions. Discussions are planned at the Ministry of Social Development and Human Security on 11 Sep.
Mr. Plathip concluded that since initiating the movement, support has grown and some scholarship opportunities have opened. However, many students remain hopeless. He vowed not to stop until the problem is resolved.
"Agencies say they will provide special care, though the meaning is unclear, but I am grateful. Still, I won’t stop until my friends get support. I may benefit personally, but many receiving complaints face even greater hardships," he said.
Push for "free education" at all levels to solve long-term problems.
a political science academic at Sukhothai Thammathirat Open University and advisor to the Education Committee, said the Student Loan Fund has long-standing systemic issues needing comprehensive reform. Debt collection measures face limitations and inefficiencies. Borrowers should have a sense of responsibility to repay, considering future students' needs. For permanent solutions, the philosophy of citizen support should shift from loans or aid to an equal right—
a "state welfare" system. Education should not be a financial burden on citizens. Many countries offer free education up to tertiary level, a standard Thailand should aspire to, beyond the current minimum of secondary education.