People’s Party MP urges funding boost for student loan fund

The opposition People’s Party has urged the government to provide additional funding to the Thailand Student Loan Fund (SLF), warning that the lack of liquidity could force tens of thousands of students out of education. Rakchanok Srinok, a People’s Party MP, stated that the SLF faces funding shortfalls in both 2026 and 2027, with the government having allocated 7 billion baht too little for the upcoming fiscal year.

The fund was not designed to be fully self-sustaining and has faced financial difficulties due to changes to the Student Loan Fund Act in 2023, which reduced interest rates and penalties, as well as declining state contributions. Rakchanok, who relied on the fund during her studies, urged the government to use central budget funds to cover the shortfall, emphasizing that the absence of borrowing options would mean students dropping out of education and losing opportunities to earn a living.

The People’s Party has proposed transferring 2-4 billion baht from the proposed 2027 budget to the SLF, criticizing Finance Minister Ekniti Nitithanprapas for not reallocating funds. The party has called on the government to allocate central funds by September 30th to prevent universities from removing students from enrolment, for the finance minister and permanent secretary for finance to publicly guarantee that no student will be forced out of education, and to ask public and private universities to defer tuition-payment deadlines while further assistance is arranged.