BANGKOK, Thailand – The government is implementing a comprehensive strategy to address teacher debt by reducing financing costs, restructuring existing obligations, preventing new debt, and lowering interest rates. Deputy Government Spokesperson Patdarasm Thongsaluaykorn stated that the Education Ministry and the Ministry of Agriculture and Cooperatives are working together to address debt owed to teachers’ savings cooperatives.
According to the Cooperative Promotion Department, Thailand has 116 teachers’ savings cooperatives with 862,539 members and outstanding loans totaling 1.14 trillion baht. The average lending rate is 5.60%, with some rates as high as 9%. Fifteen cooperatives, or 13%, charge more than 7%. After discussions on September 2, 2026, Education Minister Prasert Jantararuangtong and Deputy Agriculture and Cooperatives Minister Piyarat Tiyapairat agreed to form a joint committee to review funding, debt restructuring, and legal measures. The committee will report its findings within 30 days.
The deputy spokesperson noted that proposals include offering low-interest funding to cooperatives, refinancing members’ loans at lower rates, consolidating debts, restructuring repayment plans, and extending repayment periods to better align monthly payments with borrowers’ incomes. The government is also considering expanding the use of the Credit Lock mechanism to prevent participating members from incurring additional loans. Currently, 14 cooperatives use this measure, covering 914 members, including nine teachers’ savings cooperatives with 864 members.
The deputy spokesperson added that other proposals include responsible lending standards based on long-term repayment capacity and post-retirement obligations. She emphasized that these measures are intended to help teachers maintain sufficient income for daily living and achieve sustainable financial stability. (NNT)
