Thailand's Student Loan Fund (กยศ): Eligibility, Terms and Income-Based Repayment
By Muntasir • Published Sep 18, 2026 • Updated Sep 20, 2026 • Money & Budgeting, Study in Southeast Asia
The Student Loan Fund (กยศ) lends Thai students money for tuition and living costs at a subsidized 1 percent annual interest rate, with a 2-year grace period after you finish study before repayment starts. Most borrowers need a family income under 360,000 baht a year to qualify.
💵 Interest rate: 1 percent per year, well below normal loan rates.
📩 Family income cap of 360,000 baht a year applies to the main need-based loan category.
⏱️ 2-year grace period after graduation or leaving study before you owe your first payment.
🎓 Loans can cover tuition, and separately living costs, depending on which category you apply under.
Repayment scales with income, so lower earners pay a smaller share of their salary than higher earners.
What the Student Loan Fund is
The Student Loan Fund, กยศ (กองทุนเงินให้กู้ยืมเพื่อการศึกษา), is Thailand's government-run student lending scheme. The Thai government set it up in 1996 to widen access to upper-secondary and higher education for students who could not otherwise afford it. It now runs alongside the Ministry of Higher Education, Science, Research and Innovation (MHESI) and lends to students at approved schools, vocational colleges and universities across the country.
Who qualifies
กยศ lends under several categories, but the largest and most used is ลักษณะที่ 1, for students who lack the financial means to pay for education themselves. To qualify under this category, family income must not exceed 360,000 baht a year, a threshold that applied for the 2567 (2024) academic year according to Thairath . Other loan categories, covering students in national-priority fields and students at government-designated institutions, apply a similar family income condition. Check the current year's announcement on studentloan.or.th before you apply, since income limits and required documents are reviewed each academic year.
Borrowers must be Thai nationals enrolled in an approved course at an approved institution, and most categories also carry a minimum grade requirement to keep the loan renewed each year.
The four loan categories
กยศ splits borrowers into 4 categories. ลักษณะที่ 1 covers financially needy students and is the category most first-time borrowers apply under. ลักษณะที่ 2 covers students studying in fields the country has identified as priority or short-supply areas. ลักษณะที่ 3 covers students at institutions the government has designated for local workforce development. ลักษณะที่ 4 covers students switching from an earlier related lending scheme into the current กยศ system. Each category has its own document checklist on top of the shared income condition, so confirm which one applies to your course and institution with your school's loan office rather than guessing from the course name alone.
What the loan covers
Depending on the category you apply under, กยศ can lend for tuition and compulsory education fees, or for a separate living-cost allowance paid monthly during the academic term, or both together. The exact amount depends on your course level, institution type, and category, so the sum you are approved for is not fixed nationwide.
Interest rate
กยศ charges a subsidized 1 percent nominal interest rate per year on outstanding balances, far under commercial loan rates. Independent economic research on the fund found the effective subsidy built into this rate, once compared to market borrowing costs, runs to roughly two thirds of the loan's real cost, with the government absorbing the difference.
Grace period and repayment
You do not owe anything while enrolled. After you graduate or otherwise leave your course, กยศ gives a 2-year grace period before the first payment is due. Repayment then continues on a schedule tied to your income level rather than a single flat installment for everyone, so someone earning less pays a smaller amount than someone earning more, though the exact repayment brackets change with fund policy. One independent study of the scheme found that for borrowers on average pay, loan repayment took up around 3 to 4 percent of income, rising to roughly 10 to 12 percent for borrowers in the lowest income group, showing the burden falls heaviest on the lowest earners even with income scaling in place.
Applying and staying enrolled in the fund
Apply through your school or university's student loan office at the start of each academic year, then confirm your loan through the กยศ system (DSL) each term. Missing the confirmation window or falling below the required grade average can suspend your loan for that year, so track your school's internal deadlines separately from the fund's national ones.
What happens if you fall behind
Missing a repayment after the grace period ends adds penalty charges on top of the outstanding balance and can affect your credit record, since กยศ reports serious defaults to the national credit bureau. The fund does offer restructuring options for borrowers who fall behind, including adjusted payment plans, so contact studentloan.or.th or your original lending institution directly if you expect to miss a payment rather than letting the account go unpaid.