Our teachers' debt problem is getting so overwhelming it is feared it will affect the quality of education. The total amount of debt owed by teachers to the Government Savings Bank (GSB) and various cooperatives is estimated at 1.2 trillion baht.
The GSB alone has lent 470 billion baht to 470,000 teachers or, on average, one million baht to each teacher. But most teachers have also secured low-interest loans from other sources such as cooperatives, the teachers' welfare fund and funeral loan schemes. It is estimated that each teacher may be up to three million baht in debt.
The easy access to funding with few strings attached is believed to be the main reason for the debt problem for most of these teachers. This has led to them to spend beyond their means in comparison with other government officials who have limited access to easy borrowing.
It is not uncommon to find debt-stricken teachers continuing to buy various expensive consumer products on hire-purchase, which further aggravates their debt problems.
While many teachers need to borrow money to meet emergency needs that cannot be met with state welfare funds, living beyond one's means appears to be the biggest factor behind their debt problems.
In Thai society, "face" is very important to gain respect or recognition. Eventually, they have to miss repayments to their creditor banks or cooperatives.
Last week, Education Minister Dapong Rattanasuwan dismissed a rumour the government would help repay teachers' debts. The debts were created by the teachers so they have to fix it themselves, he said. He is correct. Still the ministry must take a serious look at the teachers' debt problem which, if it remains unsolved, might affect the quality of the country's education quality.
Thailand's education performance has been consistently poor compared with international standards. Rote learning has a lot to do with it.
Yet many believe teachers' overwhelming debt may play a role in their poor teaching quality and lack of motivation. Indeed, they argue, how can a teacher focus on teaching if he or she is constantly worried about how to repay his/her creditors?
The education minister has ordered an investigation to find out how many debt-ridden teachers are actually teaching.
Meanwhile, the GSB is set to file lawsuits against debt-ridden teachers who have failed to file for debt-refinancing packages.
The Education Ministry is considering two financial options to save teachers from bankruptcy. One is to set up a revolving fund for them. The other is to let them use their own savings from the funeral-service schemes to pay off their debts.
Meanwhile, the GSB, as the teachers' biggest creditor, is seeking co-operation from teachers' savings co-operatives across the country to help indebted teachers pay off their instalments.
Amid the debt crunch, the Teachers' Development Association has petitioned the Education Ministry to provide indebted teachers with low-interest debt-refinancing packages with repayment periods extended up to 40 years.
While low-interest debt refinancing is helpful, it should not be the main tool to deal with debts. Teachers or not, one must use savings instead of borrowing more money to settle debts.
If education authorities believe indebtedness affects teaching quality, state assistance to ease teachers' debts should be reflected in a better academic performance among students. Without having to show accountability, teachers will not care about improving their performance. And without financial discipline, they will mostly likely slip into debt again.