Factors Affecting Student Loan Default Period of Borrower Participating in Household Debt Mediation Project

Abstract

This article aimed (1) to study the overall of student loan default; and (2) to study factors affecting student loan default period. This research is quantitative research. Data was collected using a questionnaire from 400 borrowers. The statistical tools used were frequency, percentage, and Multiple linear regression. The study found that the most of the samples are female, age 30 to 33 years old, and graduated with a bachelor's degree. Their debts total less than 50,000 baht, and they primarily have assets. The majority of people have no savings and make an average monthly income of 20,001 - 35,000 baht. It was found that most borrowers had student loans ranging from 100,000 - 200,000 baht from the fund. The entire outstanding debt to the fund is in the range of 100,001 - 200,000 baht, and the length of default on debt repayment is 4 - 8 years. There are still between 7 - 9 payments left to pay. Most of payment to income ratio is less than 20 percent. The interest charged as a penalty is the primary inducement for repayment. The Islamic Bank and the Krungthai Bank are the common payment methods. Borrowers misunderstood that student loan payback could be made at any time, and had a long period, however there is a problem with not having enough money to support living expenses. Student loans has a positive effect, payments left to pay has a negative effect, and the motivation to repay the loan resulting from the penalty has a negative effect affecting student loan default period of borrower participating in household debt mediation project significantly.