Government Tackles 1.14 Billion Baht Teacher Debt Crisis

The government is addressing teacher and education personnel debt comprehensively, shifting from interest relief to systemic solutions, particularly targeting teacher savings cooperative loans. Deputy Prime Minister's Office Spokesperson Pattardasmi Tongsalueykorn revealed that there are currently 116 teacher savings cooperatives with 862,539 members and total outstanding loans of 1.14 billion baht, with interest rates averaging 5.60% and reaching as high as 9%, with 15 cooperatives (13%) charging rates above 7%.

Resolving teacher debt requires more than reducing interest rates. The government must address the entire chain from funding sources to individual debt management. If cooperative funding costs remain high, debt burdens are unsuitable, and members can incur additional debt, problems will resurface. Following discussions on September 2 between Education Minister Prasert Chanthrawong and Deputy Agriculture Minister Piyarat Tiyaprai, a joint committee was established between the two ministries to develop comprehensive solutions.

Approaches under study include securing low-interest funding sources for cooperatives to reduce lending costs, consolidating individual debts, adjusting repayment schedules to match member income and capacity, and implementing credit locks through the National Credit Bureau to prevent new borrowing. Currently, 14 cooperatives have applied this tool to 914 members, including 9 teacher savings cooperatives covering 864 members. The government also plans to set appropriate dividend rates aligned with cooperative performance to ensure balanced management without pressure to generate risky lending income.