Struggle Between Debt and Liberty
In Germany, students who find themselves without scholarships, BAföG (Federal Education and Training Assistance Act), or other financial sources for their studies often turn to student loans as a means to fund their education[1][3][2]. Here's a breakdown of the key points about student loans and their repayment in Germany.
BAföG, a mixed grant and loan program, provides half of the funding as a non-repayable grant, while the other half is a zero-interest loan that must be repaid starting five years after completing your studies, usually over a period with monthly installments around €130 until a maximum of €10,010 is repaid[1][3]. If your income is low after graduation, you can apply for an exemption from BAföG repayment for up to 10 years[1].
The KfW Student Loan is another common option, offering up to approximately €650 per month with flexible repayment terms. This loan is interest-bearing and typically requires active repayment plans after your study may include moratoriums and various EMI options[2].
Major German banks, such as Deutsche Bank, Commerzbank, and Sparkasse, also offer student loans. These often have flexible repayment plans and might require proving enrollment and financial need[2].
Study fee loans, which are only intended to cover study fees, particularly relevant for private universities, are also available[4][5]. These loans are typically paid out in installments monthly and must be repaid at the end, with interest, according to the Center for Higher Education Development (CHE).
It's essential to note that the repayment of student loans may start immediately if the studies are abandoned in some cases. Student loans should be chosen as a last resort, as unlike scholarships or BAföG, they require full repayment[6].
Applying for a loan may require some time, as the first payments can take a few weeks or months depending on the provider. The workings and types of student loans are to be discussed in subsequent paragraphs.
Unfortunately, there is no information available about the relationship between student loans and income tax, health insurance, parents, children, apartment, BAföG, or wealth. Additionally, there is no information about the impact of abandoning studies on the repayment of study fee loans.
Loans for the final phase of studies are also available, and student loans are not paid out in full immediately, but in installments monthly. The entire student loan amount must be repaid at the end.
[1] BaföG - Federal Training Assistance Act [2] KfW Student Loan [3] BAföG - Repayment [4] Study Loans for International Students in Germany [5] Study Loans for International Students in Your Home Country [6] Student Loans in Germany: What You Need to Know
- In cases where BAföG (Federal Education and Training Assistance Act) or other financial sources for education and self-development are lacking, students in Germany might opt for vocational training or student loans, such as the KfW Student Loan, to finance their personal-finance needs.
- Within the context of the community policy, student loans like KfW Student Loan provide vocational training through flexible repayment plans and financial assistance, but they differ from scholarships as they require full repayment after studies.
