“We will arrange for the deductions in collaboration with giant companies such as CP,” SLF manager Chainarong Katchapanan said yesterday. To date, the SLF has granted loans to about 5 million students. These recipients are required to begin repaying their loans two years after graduation. About 1 million recipients have cleared all of their debts. Another million are still within the two-year grace period. But of the 3 million now required to pay back their loans, just 1 million have been doing so. The problem has prompted the SLF to explore more efficient ways to collect repayments. Among their solutions is to collect repayment instalments through the employers of loan recipients. Beginning last month, the SLF started deducting from the salaries of its loan recipients who were working at the Comptroller-General’s Department (CGD). From this month, the SLF will arrange such deductions from the payroll of all loan recipients working at agencies under the Finance … [Read more...] about Student loan payments to be cut from salaries
Managing student loan debt
caption Some couples blame their divorce on student loan debt. source fizkes/Shutterstock Financial problems have long been a common cause of divorce, but there’s a new money factor wrecking marriages that arguably wasn’t as prevalent a generation ago: student loan debt. According to a new report by Student Loan Hero, 13% of divorced borrowers blamed their student loan debt for the dissolution of their marriage. This may come as no surprise in an age where student loan debt is on the climb – more than 44 million Americans are saddled with student loan debt, contributing to a whopping national total of $1.5 trillion. Not only has the percentage of students taking out student loans increased over the past decade, but so too has the amount of money they’ve been borrowing, Business Insider previously reported. According to the Student Loan Hero report, the class of 2017 graduated with an average of $39,400 in student loan debt. It’s easy … [Read more...] about An alarming percentage of divorcees say student loans ended their marriage
THE STUDENT Loan Fund (SLF) has agreed to suspend the auction of a teacher’s house and land plots, taking into account the fact that she had fallen into legal trouble because she wanted to help her students. Vipa Banyen, now 47, had signed in as a guarantor for 60 students so that they could get loans for their study between 1998 and 1999. Each student took out a loan of a little over Bt10,000. But then about 23 of them defaulted. Now they have an accumulated debt of over Bt1 million owed to the SLF due to interest charges and fines. Only two of them have so far come forward for debt negotiations. As many of the former students had not repaid their loans, the SLF took legal action against Vipa as their guarantor. “The house and land plots are an inheritance from my late parents,” Vipa lamented. “Had I known that I would face such foreclosure, I would not have signed on as a guarantor.” Poramate Sang-iam, the director of SLF … [Read more...] about Student-loan guarantor gets reprieve
Many people associate the word “loan” with bad things such as financial problems, interest, big installments and even bankruptcy. However, thanks to improvements in financial literacy, people have become more aware that the right loan can be an investment, too. Loans for business, home purchases, or maybe cars are things that people consider investments, but how about a loan for education? If we compare with those in the United States, based on data from Student Loan Debt Statistics for 2018, student loans reached almost US$1.5 trillion, spread over 44 million borrowers in 2017. More than 70 percent of students graduate with debt. According to the World Bank ( 2018 ), as of 2017, the US had gross domestic product (GDP) per capita of $59,531, while Indonesia $3,846. Taking these facts into account, one may roughly conclude that people in the US consider education an investment so they are willing to take a loan out in order to get a promising job or build a solid … [Read more...] about Are student loans an investment?
caption Student loans weigh on many employees. source Strelka Institute/Flickr A college degree may lead to a lucrative career, but the cost of tuition is putting some people so far in debt that a even decent job can’t fully lift the burden. Companies big and small – including IBM and fitness startup Peloton – offer student loan repayment benefits to employees. Research shows employee financial stability is linked to overall well-being and work performance, and workersoverwhelmingly prefer companies who offer help with student debt, often over retirement benefits. This article is part of Business Insider’s ongoing series on Better Capitalism. A lucrative career typically relies on having a college degree. But all too often, expensive tuition costs lead to debt that even a decent-paying job can’t cover. In 2018, 44.2 million American borrowers owe $1.48 trillion in student loan debt – $620 billion more than … [Read more...] about Companies from corporate giants to hot startups have begun offering perks and programs to tackle employees’ stifling student loans