New CAE Payment Agreements in Chile: Updates, Debt Levels, and Legislative Efforts to Stop Aggressive Collections

Chilean authorities have intensified efforts to collect outstanding student debt from the Crédito con Aval del Estado (CAE) program, targeting more than half a million borrowers who have fallen behind on payments.

The Tesorería General de la República (TGR) initiated the collection process on April 6, 2026, activating two distinct tracks based on income levels. Borrowers earning more than 5 million pesos monthly face direct judicial actions, including potential asset seizures, while those earning less than 5 million pesos can enroll in structured payment plans through the TGR.

Under the payment agreement option, monthly installments are calculated as 10%, 15%, or 20% of the borrower’s income, with a minimum payment equivalent to one Unidad Tributaria Mensual (UTM). To qualify, individuals must have a minimum debt of 1 UTM and not be subject to any exclusions by the TGR. Applications can be submitted online or in person, with monthly due dates for installments.

The TGR reported that approximately 550,000 individuals carry outstanding CAE debt, contributing to a national total exceeding 4 trillion pesos in delinquent student loans. The agency assumed responsibility for these debts after banks enforced the state guarantee when borrowers defaulted, triggering the state’s obligation to repay the lenders.

We will act swiftly using the powers of executive judgment, which includes seizures. I hope we do not see large demonstrations defending people who earn more than five million pesos and are earning that thanks to a loan the state gave them. It would be hard for me to understand.

Finance Minister Jorge Quiroz

Critics have raised concerns about the accessibility of the payment plans. Deputy Lilian Betancurt of the Partido de la Gente urged the government to reassess the terms, arguing that the required payments may be unaffordable for thousands of debtors amid what she described as a “true financial emergency.” She warned that the current agreements do not align with the economic realities faced by many families and could discourage participation in the regularization process.

The collection drive coincides with broader fiscal measures under the Nacional Reconstruction plan, including restrictions on universal university tuition benefits, which will not be extended to applicants over 30 years old under the current administration’s proposal.