Cabinet Approves 1.2 Billion Baht Loan Fund Emergency Budget

Deputy Government Spokesperson Lalida Permsiwiwattana announced that the Finance Ministry has proposed the Cabinet approve a reserve budget allocation of 1.206 billion baht from fiscal 2025 emergency funds to the Student Loan Fund. The money will bolster the fund's liquidity and ensure uninterrupted loan disbursements for tuition, education-related expenses, and living allowances to borrowers.

The crisis stems from a significant budget shortfall: the fund requested 21.9 billion baht in fiscal 2025 allocations but received only 5.1 billion baht, leaving a gap of 16.8 billion baht. Historically, the fund has recycled repayments from existing borrowers to sustain new lending, but cash flow projections now show liquidity risk and insufficient funds to serve 141,838 active borrowers, necessitating the emergency budget top-up.

For the 2025 academic year, the fund set a lending framework of 775,629 borrowers—both new and continuing—with a total credit ceiling of approximately 47.7 billion baht. As of August 2025, 577,523 borrowers (74.45 percent) had received loans totaling 35.1 billion baht (73.54 percent of the ceiling).

The Budget Bureau submitted the request to the Prime Minister, who approved the 1.206 billion baht allocation. Because the amount exceeds 100 million baht, Cabinet approval was required under procedure. The Student Loan Fund must simultaneously accelerate debt collection policies under applicable law and regulations to build circulation funds and ensure long-term liquidity stability.

Permsiwiwattana stated that the supplementary budget aims to maintain continuous loan disbursements for tuition, education expenses, and living costs without interruption, enabling students to remain in the education system without dropping out.