Krabi NEDA joins to discuss teacher debt problems

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Krabi Province joined the committee meeting to solve debt problems for teachers and education personnel together with the Ministry of Education and the Office of Educational Service Areas, aiming to lower interest rate.

Earlier this week, at the Yellow Krabi Conference Room, Krabi Primary Educational Service Area Office, Mr. Somchai Hanphakdipatima Deputy, Governor of Krabi Province, Chairman of the Board of Teacher Debt Resolution, and Provincial Education Personnel, Mr. Arkhom Suchartpong, Education Commissioner of Krabi Province, Mr. Sapon Chuthong, Director of Krabi Primary Education Service Area Office, with administrators of educational agencies in the Ministry of Education, Krabi, Chairman of the Krabi Teachers Savings Cooperative Committee and representatives from Krung Thai Bank, Government Savings Bank, and Government Housing Bank attended the committee meeting to solve the debt problems for teachers and education personnel through the video conference Zoom meeting system with the Ministry of Education and the Office of Elementary Education Area 1 throughout the country.

Ms. Treenut Thienthong, Minister of Education, chaired the meeting to listen to solutions to such problems. The goal is for teachers and educational personnel to access low-interest rates or consolidate teacher debts at a single source of financial institutions and to determine measures that are most suitable for repaying debts as much as possible. The restructuring of debts includes improving and upgrading the salary cut system to pay off debts and determine the amount that can be borrowed without exceeding the payroll repayment potential.

According to Education Minister Treenuch Thienthong, a debt refinancing program allows indebted teachers to apply for a new loan with an average interest rate of 5.5%, with the repayments deducted from their monthly salaries, but leaving their take-home pay at a minimum of 30% of their salaries, to ensure they have enough money to avoid further borrowing.  Over 25,800 teachers have, so far, registered to join the program.

The current situation shows that of the 108 teacher’s savings cooperatives, only 13 have been charged with an interest rate of 5% or less, while at least 13 have been charged with 7-9% interest per year.

Teachers’ debt has been a chronic problem that no government in the past has succeeded in addressing. Prime Minister Prayut has, however, designated 2022 as the year for the government to address the nation’s household debt problem.

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