The government plans to take legal action against as many as 400,000 borrowers regarding total outstanding loan of 4.3 billion baht, according to Student Loan Fund’s manager Thada Martin.

Mr. Thada said the lawsuit will take against those who are unwilling to enter a negotiation program.

He said, normally, borrowers are supposed to start repaying their loan two years after graduation.

Over 1.7 million borrowers are due to pay back a total loan of 14 billion baht but only 9.4 billion baht has been repaid to date, leaving 4.3 billion outstanding.

The government has granted loans of 35 billion baht to 840,000 students this year and loan limit has been lifted to maximum 200,000 baht from 150,000 baht.

“Collecting more debts would help the government save more budgets,” Mr. Thada said.

The Education Ministry is reported approved the proposal.