Cabinet Approves 1.2 Billion Baht to Ease Student Loan Fund Crunch
Thailand's cabinet approved 1.2 billion baht in emergency funding to prevent the Education Loan Fund from running out of cash while paying tuition and living allowances to over 140,000 student borrowers.
The cabinet has approved 1.2 billion baht in emergency budget reserves for the Education Loan Fund to ensure continuous payment of tuition, education-related expenses, and living allowances to more than 140,000 borrowers. Deputy Government Spokesperson Lalida Perischvivat made the announcement following a cabinet meeting on September 29, 2025, at Government House, revealing that the Finance Ministry had presented to the cabinet a request for budget allocation from the 2025 central emergency reserve within a limit of 1,206,477,900 baht to support student lending for tuition fees, education expenses, and living costs.
Perischvivat stated that in fiscal year 2025, the Education Loan Fund requested 21.9 billion baht in budget allocation but was granted only 5.1 billion baht, creating a shortfall of 16.8 billion baht. Previously, the fund had managed allocated budgets alongside loan repayments recycled from borrowers to continue lending to qualifying students. However, cash flow projections indicate that the fund faces liquidity risks and may lack sufficient funds to transfer tuition payments, education expenses, and living allowances to 141,838 student borrowers, necessitating an urgent additional budget allocation of 1,206,477,900 baht to ensure continuous loan disbursement without affecting students.
For academic year 2025, the Education Loan Fund estimated lending to 775,629 students—both new and continuing borrowers—with a total lending ceiling of approximately 47.71 billion baht. As of August 2025, 577,523 students (74.45% of target) had received loans totaling 35.08 billion baht (73.54% of the ceiling). The Prime Minister has approved the fund's use of the 1.2 billion baht emergency budget to support student lending through the end of the fiscal year. Because the allocation exceeds 100 million baht, cabinet approval was required. The Education Loan Fund is also required to aggressively implement debt collection policies in accordance with applicable laws and regulations to ensure the fund has sufficient resources for sustainable future operations.
"This budget is intended to ensure that tuition payments, education expenses, and living allowances for student borrowers continue without interruption, allowing students to pursue their education uninterrupted and preventing them from dropping out of the education system, while mitigating the impact of the fund's liquidity constraints," Perischvivat said.
