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Student loan and financial support while studying

A student loan in the narrower sense serves to partially finance the study, including the cost of living during that time. It is thus aimed at visitors to a university or similar institution. In the common usage, which the financial institutions have partially joined, the student loan, however, includes loans for training at technical schools.

The German Federal Training Assistance is also part of the student loans

Even the recipients of the state training support seldom see German Federal Training Assistance as a student loan for students, although half of the monthly transfer is one. The disbursements of the German Federal Training Assistance office do not have to be interest-bearing, at the same time the repayment begins only some time after the end of the study. Another special feature of the state educational support, which is positive for students, is the capping of debts. If the actual repayment amount is more than € 10 000, it is capped at this amount. A temporary deferral of the repayment obligation is also possible, but this will incur minor interest.

It makes sense to apply for German Federal Training Assistance right at the beginning of your studies, as every completed semester of study counts for the time-limited entitlement, even if the student has renounced his or her due course. German Federal Training Assistance is only available in exceptional cases for a second degree course, whereby a master’s degree program is considered a continuation of the bachelor’s degree, so that the German Federal Training Assistance claim remains.

Student loans from the state promotional bank

KfW Bank offers student loans in two variants. The student loan is aimed at students of a recognized university, while the state development bank also pays out the educational loan in the final semesters during a technical school visit. Students in the narrower sense may apply for the graduation credit in addition to their student loan.

The payout amount is freely selectable for student loans between 100.00 and 650.00 Euro. However, a change in the sum is only possible once per semester at the beginning of the semester. In contrast to the German Federal Training Assistance office, KfW Bank explicitly promotes a second degree program and a doctorate with its affordable student loan. The State Development Loan Institution does not require proof of income for the payment of the student loan and the educational loan. It also accepts applicants with negative bank in both loans for the promotion of education, with only a previously filed private bankruptcy being a reason for rejection for the financing of studies by KfW Bank.

Like the German Federal Training Assistance office, the state promotional bank has a maximum funding period of fourteen semesters for first and second degree programs and six semesters for promotion. The disbursements of the student loan and the educational credit are not considered as income for the examination of the German Federal Training Assistance entitlement. One limitation is that students must apply for the first payment of a student loan by the tenth semester at the latest.

The interest is variable, but capped by a maximum interest rate. In principle, the interest payment begins within the payment period, in that the bank deducts the accrued interest from the transfer amount. The eradication, however, is required only after the completion of training. KfW Bank allows free special repayments for student loans, but these have to be registered and have to be 100 divisible amounts.

In case of a financial distress during the repayment phase, the monthly installment can be limited to 20,00 Euro. However, this is conditional on the repayment being made within a maximum of twenty-five years and before the sixty-seventh birthday. In addition, the reduction of the repayment rate can only be applied for on the 1st of April and the 1st of October of each year.

Student financing through universities and employers

Student financing through universities and employers

Private universities often offer their students a student loan, which only covers the tuition fees. The acceptance of such an offer makes sense if the student can meet the cost of living in another way. The credit offer of most state universities is limited to financing the final semester, for which limited funds are available. Most university regulations require a panel of teachers and students to decide on the funding. In doing so, the students prefer to support extraordinary topics of the thesis, while the professors tend to orientate themselves on the past achievements. Chances of obtaining a loan from the University are those who combine a specific research topic with excellent reviews of previous work.

A student loan from the employer is eligible for students who have pursued a bachelor’s degree and a master’s degree in employment. He is also conceivable for a postgraduate course. A prerequisite for the loan payment by the employer is that the student supported in this way undertakes to work for a certain period of time after completing the subsequent studies.

Student loan from commercial banks

Student loan from commercial banks

In addition to KfW Bank, several commercial banks offer student loans on different terms. Common to the loan offers that the repayment is made only after the completion of university education. In contrast to the student loan of KfW Bank, part of a student loan from commercial banks requires the guarantee of a parent or other person with regular earned income. In addition, applicants for a student loan from a commercial bank must in principle have bank information without a negative feature; only a few banks accept students with a soft negative entry as a borrower.

The offers of the commercial banks for the Student Loan differ widely both in terms of interest rates and other conditions, so that a careful credit comparison is essential. In this comparison, students pay attention to whether the interest rate mentioned is fixed or variable for the entire term. The contractual differences between the individual credit offers for students consist of the length of the waiting period between the end of the course and the beginning of the repayment, as well as the possibility for special repayments.

You need financial support during your studies? Request for student loan

The education fund as a modern student loan

A private bank offers students the education fund as a modern variant of a student loan. The payout amounts to a maximum of 650.00 euros per month. As the maximum age, the provider has set thirty years at the beginning of the study, so that the loan is also suitable for people who visit the university only after an education and a temporary occupation.

In addition to the actual student loan, the private bank offers its students a supplementary loan in the amount of 5,000 euros, which can be used, among other things, for a stay abroad and for the purchase of materials. The payment is made exclusively to a current account held with this financial institution. As the bank does not charge an account fee and also hands over a free credit card to the account holder, this rule is acceptable. The interest rate for this student loan is fixed for the entire duration of the contract. Existing credit liabilities do not exclude the use of the student fund, provided that their maximum amount is EUR 10 000. The repayment begins one year after the end of the study and is stretched over a period of twenty years, whereby free special repayments are possible at any time and without any limitation.