Loans crisis boosts student dropout raten

Published on August 7, 2007

Bancha Kerdmanee called on the Student Loan Fund to deposit money now. Loans cover student expenses and amount to between Bt2,000 and Bt3,000 a month each.

Schools have delayed col¬lecting tuition fees until the second term, he added.

Students borrowing from the Income Contingent Loan scheme (ICL) - including those who had already been transferred from ICL to the student fund - were yet to receive their allowances for this year, he said.

Delays are because new loan agreements are needed. The fund has undergone management changes, too. These have forced many stu¬dents to quit school, Bancha estimated.

Bancha said banks had rejected loan agreements for students who had swapped schemes. They required new documentation.

That involved parents across the country having to sign new forms, adding to delays.