Thailand’s Student Loan Fund: An Analysis of Interest Rate Subsidies and Repayment Hardships

This paper presents analysis of the implicit subsidies and repayment hardships of Thailand’s Student Loan Fund (SLF). Comparisons are made between the current SLF with alternative similar schemes, assuming different rates of interest and loan repayment periods. We find that the implicit interest rate subsidy is about 66 per cent, with much of this being due to the fact that the scheme charges only a 1 per cent per annum nominal interest rate. The repayment hardships, measured as the proportion of a graduate’s income allocated to servicing the debt, are around 4 and 3 per cent, for female and male graduates earning average incomes by age. However, these increase to 12 and 10 per cent for female and males whose earnings are in the bottom deciles. The current SLF is generous in terms of repayment hardship for the borrowers. However, the scheme appears to be unsatisfactory in terms of the extent of implicit subsidies.can generate a large (non-marginal) switch to home production and the ensuing deadweight losses are large. Using a cross-country panel, we find that gender differences in labour supply responses to tax policy can explain differences in aggregate labour supply and years of education across countries.student loans; higher education financing

Parametric analysis of energy harvesting pavements operated by air convection

In this paper, an energy harvesting pavement prototype using air as the operating fluid is described and analysed. The prototype harvests the thermal energy available in the pavement through pipes embedded in its structure, where air flows thanks to natural convection. The air is able to exit the system through an updraft chimney. A parametric analysis of the controllable parameters of interest is performed in this work in order to evaluate the variation in the performance of the energy harvesting prototype in different experimental setups. This study shows that there exists a maximum value for the air speed in each configuration and that the energy harvesting efficiency depends on the height and the diameter of the chimney. Moreover, there is a minimum value of the chimney diameter that does not allow air movement and makes the whole system behave as if no pipes were embedded in the pavement structure

Thailand’s Student Loan Fund : An Analysis of Interest Rate Subsidies and Repayment Hardships

Thailand, Higher Education Student Loans, Loan Repayments

Thailand's Student Loans Fund: Interest rate subsidies and repayment burdens

Government student loan schemes typically have implicit interest rate subsidies which, while these are a cost to taxpayers, they have the benefit of diminishing repayment burdens for graduates. Our goal is to illustrate the extent of both interest rate subsidies and repayment burdens with respect to Thailand's Student Loans Fund (SLF), using methods pioneered in measurement terms by Ziderman, 1999 ; Ziderman, 2003. Our critical innovation is to calculate repayment burdens for graduates with widely differing earnings, and we find that these generally are relatively low because the SLF is heavily subsidized. Even so, for graduates with very low income the burdens can be high. Importantly we analyze and illustrate what the repayment streams would be if the SLF was redesigned to have no interest rate subsidies and find that the burdens increase to extremely high levels for the lowest income graduates. The results are considered in the context of the analysis of income contingent loan schemes for Thailand presented in Chapman and Lounkaew (this issue