The Student Loan Fund said on Tuesday it will begin restructuring the debts of student defaulters in November.
SLF manager Chainarong Katchapanan told Justice Minister Tawee Sodsong on Tuesday that drafting of needed regulations would be finished next month, and student borrowers would be called for restructuring from November onwards.
Mr Tawee said restructuring would benefit student borrowers who defaulted, and their guarantors. The Legal Execution Department would suspend action against them pending restructuring.
The movement complies with the amended Student Loan Fund law. Loan interest is capped at 1% instead of 7.5% annually and the default fine drops to 0.5% yearly instead of 18%.
"After debt restructuring, repayments by debtors will first be deducted from the loan principal, with payments of interest and fines to follow... This is for the greater promotion of young people's access to education," Mr Tawee said.
As of last month, the fund had 6.58 million borrowers, of which 54% had yet to make repayments and 28% had completed repayment.