Officials at the Comptroller-General's Department who have outstanding student loans will have regular repayments deducted from their monthly salaries starting next month.
Student Loan Fund manager Chainarong Katchapanan said on Wednesday the Comptroller-General's Department will be the first employer to begin automatic deductions and payments to the SLF through the Revenue Department.
Automatic deductions at other government agencies will follow by October, he said.
State enterprises and private companies will also introduce the same measure, starting with Charoen Phokphand Group and Krungthai Bank by the end of this month.
The SLF has 170,000 debtors who work as civil servants, with total debt still to be repaid at 16 billion baht. Only 90,000 officials continue to service their student debts.
The SLF has filed lawsuits against 1.2 million borrowers with total debts of 48 billion baht who have defaulted on payments since it was set up in 1996.
Mr Chainarong said another 120,000 borrowers, with debts of 12 billion baht, have also defaulted and will be sued.
The SLF has also made an arrangement with Krungthai Bank for borrowers to make repayments using the bank's QR code system.