Federal student loans increase tuition fees

Student Loans

There are various ways to supplement or completely finance your studies with an education or student loan.

Education loan

Photo: Martin Rehm / Federal Employment Agency

Students in advanced study phases can be granted an education loan from the federal education loan program for a maximum of 24 months. This is also possible in addition to BAföG. This loan is offered through the state-owned KfW banking group. However, the Federal Administration Office (www.bva.bund.de) is responsible for applying for and approving the education loan. Together with the approval notification from the Federal Office of Administration, you will receive a loan offer from KfW, after which KfW will initiate the payments.

You can apply for monthly installments of 100, 200 or 300 euros. Up to 24 monthly installments, i.e. a maximum of 7,200 euros, can be approved within a training phase. To finance extraordinary expenses, such as tuition fees or work equipment, part of the loan up to the amount of 3,600 euros can be paid in advance as a one-off payment.

There is no legal entitlement to the education loan.

More information is available at www.bildungskredit.de or from the Federal Office of Administration in Cologne.

Student Loans

Several Banks and savings banks offer student loans to finance living expenses and other study costs. However, lending can be regional or limited to certain universities. The Center for University Development examines the offers of various credit institutions at irregular intervals (www.che.de/studienkredittest). The investigation also contains tips for or against a student loan.

In addition to private banks, the state KfW banking group a student loan program on offer. It offers students of all subjects at state or state-recognized universities, regardless of income and assets and without collateral, an interest-bearing loan of 100 to 650 euros per month. The maximum payout period in the first or second degree depends on the age at the beginning of the degree; Up to 24 years there are 14 semesters of support, up to 34 years 10, up to 44 years 6. There is no funding over 44 years. The student loan is also granted to part-time and part-time students, as well as students in postgraduate studies or doctoral studies. An overview of the financing options is available at www.kfw.de> Private Individuals> Studying & Qualifying> Promotional Products> KfW Student Loan.

For special Hardship cases or in the event of unforeseeable special financial burdens in the graduation phase, in which statutory funding is out of the question, many student unions maintain loan offices or hardship funds. These loans are generally granted interest-free, but usually have to be repaid as soon as possible.

Education fund

Education funds represent an alternative to the classic student loan. A special feature of this type of financing: The repayment of the funding is only made after a successful career start. It is determined in advance in which period the beneficiaries will repay what percentage of their earnings to the education fund (earnings-related repayment). Please check the respective conditions carefully, e.g. termination and repayment conditions as well as interest rates. With some providers, study support programs supplement the financial support. Lending is tied to a selection process.

Overall, investors in education funds expect a return on the repayments. The administration of the education funds must also be financed with it.

Education funds are financed, for example, by a university to support talented students, or by private companies that want to promote young talent in their industry. There are also nationwide education funds.

The Center for University Development CHE examined and rated student loans and education funds in 2019. The results can be downloaded free of charge from the Internet at www.che.de/studienkredittest.